Shares of Merlin (NASDAQ:MRLN) surged 30% in after-hours trading following the company's announcement that it has completed the Critical Design Review - or CDR - for its C-130J autonomy program conducted with the U.S. Special Operations Command (USSOCOM).
The company said the CDR marks the conclusion of the program's final design configuration, clearing the way for the next phase: integrating the autonomy system onto aircraft. Completion of the review is presented as a validation of the system's design readiness and opens the program to a formal test campaign that will include aircraft-level testing.
The CDR milestone is part of Merlin's work under an IDIQ contract tied to its C-130J autonomy program with USSOCOM. The program is intended to demonstrate Merlin's developments in autonomous capability for the C-130J, with stated potential to reduce crew workload across all phases of flight.
Under the terms of the contract cited by the company, Merlin is advancing an AI-powered autonomy stack to be installed on the C-130J, and the company notes potential pathways for that technology to expand across other Department of War or commercial aviation platforms.
Commenting on the development, Merlin CEO and founder Matt George said: "Completing the Critical Design Review validates the architecture we’ve built for safe, scalable autonomy on large aircraft like the C-130J. 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 US warfighters."
Merlin describes itself as an aerospace and defense technology company building the operating system for autonomous flight.
This announcement propels the program into an operationally significant stage - aircraft integration and the beginning of a testing campaign - while also prompting a marked market reaction reflected in the aftermarket share move. The company framed the milestone as both a technical validation and a step toward demonstrating end-to-end autonomy on a large military transport aircraft.