- AeroVironment will continue delivering advanced technologies to a government customer
- The contract includes an initial value of $315 million
- Work will run through the company’s AxS business segment
AeroVironment secured a multiyear contract with a potential value of $940 million to deliver defense products and support services to a U.S. government customer. The defense technology company said Monday that operational security guidelines prevent it from identifying the agency or program behind the award.
What Is the Scope of the AeroVironment Contract?
The indefinite-delivery/indefinite-quantity contract covers the continued delivery of advanced capabilities under AV’s AxS business segment, which is responsible for supplying the company’s product lines to address customer needs. The agreement includes an initial award worth approximately $315 million.
Trace Stevenson, president of AV’s AxS segment, said the contract demonstrates customers’ confidence in the company’s ability to transition advanced technologies from development into large-scale production and deliver mission-ready products that meet demanding operational requirements.
What Counter-Drone Contracts Has AV Received?
The new IDIQ follows a pair of Army counter-drone awards for AV this year. In September, AV received a $464.8 million contract from the U.S. Army Portfolio Acquisition Executive for Fires to produce directed energy systems under the Enduring-High Energy Laser, or E-HEL, program. Under the other transaction agreement, the company will deliver dozens of LOCUST X3 laser weapon systems over the next few years and provide system support and training.
The E-HEL award is the Army’s first production contract for a high-energy laser weapon system. The 30-kilowatt LOCUST X3 is designed to counter Group 1-3 unmanned aircraft systems as part of the Army’s layered air defense. It can be integrated with multiple Army vehicles, including the Joint Light Tactical Vehicle.
In July, the Army awarded AV a potential $500 million firm-fixed-price contract for commercial counter-unmanned aircraft systems capabilities, including technologies to defend against small drones, through June 29, 2029.
What Other Awards & Deals Has AV Secured?
Beyond counter-drone work, AV has added to its unmanned aircraft business. In June, the Army awarded the company a $117.3 million contract for 82 P550 unmanned aircraft systems to support reconnaissance, surveillance and target acquisition missions at the battalion level. The Group 2 electric vertical takeoff and landing system entered Army service in 2025 under the Long-Range Reconnaissance program, which supports Transformation in Contact brigades.
In March, AV acquired Empirical Systems Aerospace, or ESAero, a producer of unmanned aircraft and advanced air mobility systems, in a deal valued at approximately $200 million. ESAero brings engineering capabilities in electric and hybrid propulsion, rapid prototyping and certified manufacturing. It operates as a subsidiary within AV’s precision strike and defense systems group. The transaction followed AV’s $4.1 billion purchase of BlueHalo in May 2025.
Earlier, in October 2025, Army Contracting Command at Redstone Arsenal, Alabama, awarded AV a firm-fixed-price contract with a cumulative face value of $874.3 million to supply Puma and Raven UAS, along with spares, accessories and training, to foreign military sales customers. Work is expected to be completed by Oct. 25, 2030.
Before that, AV received a $288 million third delivery order for Switchblade loitering munition systems, after a $55.3 million second order in January 2025. Both orders fall under a potential five-year, $990 million IDIQ contract the Army awarded in August 2024 under its Directed Requirement for Lethal Unmanned Systems.
