AeroVironment (AVAV) Secures Historic $465M Laser Weapons Deal with U.S. Army

Key Highlights

• AeroVironment secured a historic $464.8 million agreement with the U.S. Army for the Enduring-High Energy Laser (E-HEL) initiative.
• This marks the inaugural production agreement for directed energy technology in American military procurement history.
• The company will supply multiple Locust X3 30-kilowatt laser defense platforms throughout the coming years.
• The Locust X3 is engineered to neutralize small-scale unmanned aerial vehicles and will be compatible with various military platforms including the Joint Light Tactical Vehicle.
• AVAV shares finished the trading day up approximately 1%, with an additional 0.25% gain in extended hours.

Shares of AeroVironment (AVAV) climbed higher on Tuesday following the announcement of a significant $464.8 million contract awarded by the U.S. Army, with the stock gaining nearly 1% during standard market hours and tacking on another 0.25% in after-hours activity.

AeroVironment, Inc., AVAV

This agreement encompasses the Enduring-High Energy Laser (E-HEL) initiative and signifies a groundbreaking moment as the first-ever production procurement of directed-energy defense technology in American military procurement. The significance of this achievement cannot be overstated.

Issued by the Army’s Portfolio Acquisition Executive for Fires (PAE Fires) division, the contract will enable AeroVironment to manufacture and deliver numerous Locust X3 laser defense platforms throughout the coming years, complete with comprehensive support services and personnel training.

Understanding the Locust X3 System

The Locust X3 represents a 30-kilowatt laser platform engineered to neutralize small unmanned aerial systems without relying on traditional munitions or projectiles. Its versatile design allows deployment across various military vehicles and operational configurations.

Integration plans include mounting the system on the Joint Light Tactical Vehicle (JLTV). The Army is also developing palletized versions and exploring potential compatibility with the Infantry Squad Vehicle (ISV).

The platform leverages AeroVironment’s proprietary AV Halo artificial intelligence targeting software and operates as part of the company’s comprehensive Halo Shield counter-unmanned aircraft ecosystem.

Designed specifically to combat Group 1 through Group 3 unmanned aerial vehicles, the Locust X3 addresses the escalating threat posed by smaller drones in contemporary military operations.

Transition from Development to Deployment

The E-HEL initiative represents an evolution of the Army’s Multi-Purpose High Energy Laser (AMP-HEL) prototype program. The Locust platform underwent extensive evaluation at White Sands Missile Range under Joint Interagency Task Force 401 oversight, where it successfully validated its drone-neutralization capabilities.

These trials also facilitated a critical DOD-FAA authorization enabling the system’s deployment within U.S. territory.

According to AeroVironment CEO Wahid Nawabi, this contract represents the maturation of directed energy technology from experimental concept to operational military capability. This transition marks a pivotal moment for technology that has remained primarily in development and testing phases for years.

Manufacturing expansion will be supported by a $30 million capital investment in AeroVironment’s Albuquerque, New Mexico production facility, announced in March 2026.

The company has already showcased the Locust platform aboard the USS George H.W. Bush, suggesting potential naval applications beyond the current Army procurement.

AeroVironment’s current product lineup spans loitering munitions, autonomous platforms, counter-UAS solutions, space technologies, electronic warfare capabilities, and directed-energy armaments, representing substantial diversification from its original focus on compact unmanned aircraft.

This $464.8 million contract establishes a major Army program within that expanded portfolio and positions the company as a key player in an emerging defense category receiving significant Pentagon investment.