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AeroVironment Gets $146M Army Miniature Aerial Munition Supply Contract

AeroVironment (Nasdaq: AVAV) has landed a potential three-year, $146M contract to provide loitering missile systems designed to help military users reach targets for operations beyond line of sight.

The company said Thursday it will start to deliver the Switchblade miniature aerial missiles to the service branch beginning in September under the sole-source contract with a $75.9M base value awarded by the Army Tactical Aviation and Ground Munitions project office due to "joint urgent operational need."

Switchblade can be deployed from a six-pack launch platform and seeks to help warfighters hit a target  up to six miles from a fixed or a mobile location.

The contract includes two option years that would extend work through April 2023.

Brett Hush, senior product line general manager of tactical missile systems at AeroVironment, said the system has helped the branch perform force protection and precision strike missions.

He added that the company will continue to update Switchblade's features to support requirements of U.S. military and allied customers.

Northrop Grumman (NYSE: NOC) produces the warhead technology for the back-packable munition.

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