AeroVironment (AVAV) stock is trading around $142.20 — near its 52-week low of $135.20 — as the company released additional details Monday about a $117.3 million U.S. Army contract for its P550 drone system. The market cap sits at approximately $7.17 billion.
The contract itself isn’t new. The Pentagon originally disclosed the award on March 20 as a firm-fixed-price deal for P550 Long Range Reconnaissance systems. Monday’s announcement filled in the specifics: 82 aircraft, issued under a Basic Ordering Agreement through the Army’s Unmanned Aircraft Systems Marketplace.
📢 𝐉𝐔𝐒𝐓 𝐈𝐍: $AVAV AeroVironment Wins $𝟏𝟏𝟕.𝟑 𝐌𝐢𝐥𝐥𝐢𝐨𝐧 U.S. Army P550 Drone Contract
👉 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:
➤ 𝐀𝐞𝐫𝐨𝐕𝐢𝐫𝐨𝐧𝐦𝐞𝐧𝐭 awarded a $𝟏𝟏𝟕.𝟑 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 U.S. Army contract.
➤ Contract covers delivery of 𝟖𝟐 𝐏𝟓𝟓𝟎 eVTOL…
— Hardik Shah (@AIStockSavvy) July 20, 2026
The P550 is a battery-powered Group 2 electric vertical take-off and landing (eVTOL) unmanned aircraft. It can carry payloads up to 15 pounds and stay airborne for up to five hours.
What makes the system stand out operationally is its field reconfiguration capability. Operators can swap payloads and batteries in under five minutes, without tools.
The aircraft supports a range of mission types: intelligence, surveillance and reconnaissance, precision strike, electronic warfare, and communications relay across air, ground, and maritime environments.
CEO Wahid Nawabi said the P550 is built for adaptability in contested environments, giving maneuver forces the ability to quickly change configurations depending on the mission at hand.
The contract was awarded through a competitive Call for Solutions process — part of the Army’s push to field commercial drone technology faster than traditional procurement allows.
This award is described as the initial full-rate procurement of the P550 platform, a step up from earlier developmental or limited phases.
The procurement falls under the Army’s Battalion Reconnaissance effort, which focuses on extending surveillance and reconnaissance reach at the unit level.
AeroVironment built the P550 using a modular open systems approach. That means third-party payloads, datalinks, and mission planning software can be integrated into the platform.
On the financial side, AeroVironment posted a loss of $5.40 per share over the last twelve months. Analysts are forecasting a return to profitability, with earnings of $3.27 per share expected for fiscal 2027.
Raymond James recently upgraded AVAV from Market Perform to Outperform. Analyst Brian Gesuale cited improved risk/reward dynamics and positive momentum in bookings and backlog growth. His price target stands at $210.
Citizens maintained a Market Outperform rating but trimmed its price target from $350 to $230, following the company’s investor day and FY30 Growth Plan presentation.
In a separate development, AeroVironment’s JUMP 20 system received the MQ-31A military designation from Italy’s Directorate of Aeronautical Armaments and Airworthiness, confirming its integration into Italy’s military inventory.
AVAV is currently down about 0.91% on the day.
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