AeroVironment Secures $464.8M US Army Contract for Laser Weapon Systems

Key Facts

1AeroVironment was awarded a $464.8 million contract by the U.S. Army to build laser weapon systems.

2The 30-kilowatt LOCUST X3 laser weapon system can down military drones weighing up to half a ton.

In a move reflecting the increasing strategic focus on directed-energy defense technologies, AeroVironment has secured a significant contract from the U.S. Army. According to reports, the contract is valued at $464.8 million and is dedicated to the construction and development of advanced laser weapon systems. This award highlights the military's ongoing efforts to modernize its defensive capabilities against evolving aerial threats.

The project centers on the LOCUST X3 laser weapon system with a 30-kilowatt capacity, specifically engineered to counter Group 3 military drones. This technology is capable of neutralizing drones weighing up to half a ton, providing a high-precision alternative to traditional kinetic interceptors. The contract solidifies AeroVironment's position within the high-growth laser defense technology segment.

Shares of AVAV stood at $159.95 at the close of September 18, 2026, having traded between a day high of $168 and a low of $159.4. With no immediate sector-specific catalysts in the upcoming economic calendar, investors will likely focus on the long-term revenue visibility provided by this substantial award as global demand for counter-drone solutions continues to rise.