AeroVironment (AVAV) landed a $464.8 million contract from the U.S. Army on Tuesday, sending the stock up nearly 1% during the regular session and an additional 0.25% after hours.
The contract covers the Enduring-High Energy Laser (E-HEL) program and represents the first production procurement of directed-energy systems in U.S. military history. That’s not a small milestone.
The award comes from the Army’s Portfolio Acquisition Executive for Fires (PAE Fires) program office. It will see AeroVironment deliver dozens of its Locust X3 laser weapon systems over the next several years, alongside system support and training.
The Locust X3 is a 30-kilowatt laser system designed to destroy smaller drones without using conventional missiles or ammunition. It’s platform-agnostic, meaning it can be fitted to different military vehicles and configurations.
The Army plans to integrate it with the Joint Light Tactical Vehicle (JLTV). Palletized configurations are also planned, and the military is assessing possible integration with the Infantry Squad Vehicle (ISV).
The system uses AeroVironment’s AV Halo artificial intelligence software for targeting and functions within the company’s broader Halo Shield counter-drone architecture.
The Locust X3 is primarily aimed at countering Group 1 through Group 3 unmanned aircraft, the category of smaller drones that have become a growing threat on modern battlefields.
The E-HEL program builds on the Army’s existing Multi-Purpose High Energy Laser (AMP-HEL) prototype effort. Locust was previously tested at White Sands Missile Range under Joint Interagency Task Force 401, where it successfully demonstrated the ability to take down drones safely and effectively.
That testing also helped secure a DOD-FAA agreement clearing the system for domestic use.
AeroVironment CEO Wahid Nawabi said the award reflects the shift of directed energy from experimental technology into a fielded military capability. That’s a meaningful step for a technology that has spent years in testing without reaching full production.
The production ramp-up will be backed by a $30 million investment in AeroVironment’s Albuquerque, New Mexico facility, which was announced in March 2026.
The company previously demonstrated the Locust system aboard the USS George H.W. Bush, hinting at possible Navy applications beyond the current Army contract.
AeroVironment’s portfolio now includes loitering munitions, autonomous systems, counter-UAS technology, space systems, electronic warfare, and directed-energy weapons, a notable expansion from its roots as a small drone supplier.
The $464.8 million award adds a sizable Army program to that mix and gives the company a production foothold in an emerging weapons category the Pentagon is prioritizing.
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