The U.S. Army has narrowed its list of potential vendors for its Future Tactical Uncrewed Aircraft Systems (FTUAS) program, and it appears AeroVironment (NASDAQ: AVAV) didn't make the cut. Investors are disappointed with the outcome, sending shares down as much as 19% on Thursday.

AeroVironment makes small- to mid-size unmanned aerial vehicles (UAVs) -- or drones -- primarily for military customers, including some that are small enough to be carried into battle on a soldier's back. The company's systems are a big part of the United States aid package to Ukraine, helping to raise the company's profile and give its products more credibility with defense forces.

The company's plan for growth includes expanding into larger, more lucrative UAVs, and it is battling other defense contractors for a number of opportunities to expand.

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Source Fool.com