MRLN Stock Soars 25% On Acing Key Design Review for Autonomous Planes

• Completing CDR clears the runway to test its AI autonomy stack on the C-130J military transport aircraft. 
• The advanced flight automation integration is part of a high-stakes USSOCOM contract carrying a ceiling value of over $100 million. 
• The CDR is part of Merlin’s previously awarded IDIQ contract under its C-130J autonomy program with USSOCOM.

Merlin, Inc. (MRLN) share price soared 25% after-hours on Thursday after the defense contractor announced the successful completion of the Critical Design Review (CDR) for its C-130J transport aircraft autonomy program, a key step forward under its ongoing contract with the U.S. Special Operations Command (USSOCOM).

The successful review validates the system's design readiness and advances Merlin from the design development phase into direct aircraft integration activities. The milestone positions the program to begin a formal, structured testing campaign, which will include ground- and aircraft-level testing to verify the autonomous system.

The CDR is part of a previously awarded Indefinite Delivery, Indefinite Quantity (IDIQ) contract with USSOCOM, which carries a total contract ceiling value exceeding $100 million. Under the program, Merlin is integrating its artificial intelligence-driven autonomy stack onto the C-130J, aiming to dramatically reduce crew workload across all phases of flight from takeoff to touchdown.

"Completing the Critical Design Review validates the architecture we’ve built for safe, scalable autonomy on large aircraft like the C-130J," Matt George, CEO and founder of Merlin, said in a statement. "As we move into integration, ground testing, and eventually flight demonstrations, we’re focused on proving autonomy from takeoff to touchdown is one of the most effective ways to improve operations and safety for U.S. warfighters."

Autonomous Flying Defense Stocks See Shift Following Geopolitical Conflict

The advancement of Merlin's automated systems comes amid a broader realignment for aerospace and defense sector equities. Since the outbreak of the U.S.–Iran war in February 2026, defense hardware and aerospace infrastructure manufacturers have seen significant market attention.

Merlin stock has underperformed several other autonomous flying and drone contractor stocks since the US-Iran war began.  Drone maker shares have surged amid media reports that the Trump administration is in talks to fund such companies. 

The Wall Street Journal reported last week that the Trump administration is pursuing funding deals with a group of drone companies as part of its effort to increase domestic production and lower the costs of the increasingly vital weapons.

For Instance, drone maker Ondas (ONDS) shares have surged 1,243% since the end of February, when the U.S.-Iran war began, according to data from Koyfin. 

MRLN Retail View 

Retail sentiment on Stocktwits was “extremely bullish” with “extremely high” message volumes. 

Retail chatter has surged 500% over the past 30 days. 

One user said the stock is a 100% buying opportunity. 

MRLN stock has lost 33.4% year-to-date.

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