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AeroVironment
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AeroVironment

US drone and directed-energy company; FY26 revenue $1.98bn, $500m Army Counter-UAS deal, June restatement.

On 15 April, AeroVironment placed four LOCUST X3 laser systems in the US Army's EHEL evaluation, turning its counter-drone weapon into assessed hardware while the selection moved to Q4 FY26.

Last refreshed: 1 October 2026 · Appears in 1 active topic

Key Question

Is BlueHalo's integration a $282m revenue engine or the source of AeroVironment's restatement?

Timeline for AeroVironment

#18 29 Sept

Mentioned in: JIATF-401 adds ten Domestic Shield firms

Drones: Industry & Defence
#18 18 Sept

Reported a record US$1.5bn funded backlog

Drones: Industry & Defence: DIU ranks Gauntlet II drone winners
#18 10 Sept

Mentioned in: German federal police buy anti-drone kit

Drones: Industry & Defence
#16 22 Jul

Mentioned in: Ondas turns a $876m buy into orders

Drones: Industry & Defence
#15 7 Jul

Won a German NSPA order and an Italian MQ-31A type designation

Drones: Industry & Defence: AeroVironment opens two more NATO markets
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Background

AeroVironment is a US defence technology company whose portfolio spans loitering munitions, reconnaissance aircraft and counter-drone systems. Its named products include the Switchblade family, P550 and LOCUST X3, serving kinetic and directed-energy drone missions.

Engineer Paul MacCready's work in the 1970s preceded AeroVironment's long supply relationship with the Pentagon for small tactical uncrewed aircraft. The company expanded its structure through the 2025 BlueHalo acquisition, which added directed-energy and electronic-warfare capabilities, and the ESAero purchase, which added rapid-prototyping capacity and 300 employees.

Military users encounter AeroVironment through aircraft, loitering munitions and counter-drone equipment rather than a single product line. Integrating BlueHalo and ESAero therefore shapes the company's capacity to design, build and support systems across those categories.

Key Issues
Laser defence

AeroVironment reaches laser evaluation

On 15 April, AeroVironment moved four LOCUST X3 laser systems into the US Army's Enduring High Energy Laser evaluation. Two were fitted to Infantry Squad Vehicles and two to Joint Light Tactical Vehicles. The delivery followed AeroVironment's 25 March launch of LOCUST X3, which the company priced at about $5 per engagement against small drones.

On 10 April, the Army deferred its EHEL choice from Q2 to Q4 FY26. The later decision left AeroVironment's equipment in assessment for a longer period, making the April deployment central to its attempt to convert a new laser product into a military programme.

Common Questions
Who is William J. Lynn III and why did he join AeroVironment's board?
William J. Lynn III, a former US deputy Secretary of Defense, joined AeroVironment's board as an Independent director in June 2026 as two Arlington Capital Partners-nominated directors resigned, taking the board from ten members to nine.Source: drones-industry-defence update 14
What does AeroVironment's $500 million Army contract cover?
On 1 July 2026 the US Army awarded AeroVironment a $500 million, three-year layered Counter-UAS contract covering the Titan counter-drone system, the LOCUST X3 laser, and the Freedom Eagle interceptor.Source: drones-industry-defence update 14
Why did AeroVironment restate its earnings in June 2026?
AeroVironment disclosed an $87.3 million restatement of an earlier quarterly loss, caused by a non-cash goodwill-impairment error in its Space segment tied to the stop-work on the BADGER phased-array antenna programme under SCAR, and flagged a new material weakness in its financial controls.Source: drones-industry-defence update 14
What is the Switchblade 400 LASSO programme and what did AeroVironment win?
The Low Altitude Stalking and Strike Ordnance (LASSO) is a US Army Other Transaction Authority for loitering munitions. AeroVironment's Switchblade 400 was selected on 4 May 2026, with the Army requesting $110 million in FY2027 procurement and a $1.2 billion ceiling through FY2031.Source: US Army / Defense News
What is the Army's Enduring High Energy Laser competition and when will it be decided?
The EHEL programme selects a winner for a directed-energy counter-drone laser. The selection slipped from Q2 to Q4 FY26, with AeroVironment a confirmed entrant after delivering four LOCUST X3 units to the Rapid Capabilities and Critical Technologies Office in April 2026. Other entrants include Epirus (Leonidas AGV).Source: federal-government
What is AeroVironment's LOCUST X3 and how much does it cost to use?
LOCUST X3 is AeroVironment's third-generation directed-energy laser weapon, delivering 20 to 35-plus kilowatts and defeating Group 1 through Group 3 drones for approximately $5 per engagement. In April 2026, AeroVironment delivered four units to the Army's RCCTO for the Enduring High Energy Laser competition evaluation.Source: industry-report
What does AeroVironment's Red Dragon drone do?
Red Dragon is a loitering munition with a 400-kilometre range and GPS-denied autonomous targeting via SPOTR-EDGE, allowing autonomous target classification when communication links are severed. The Army awarded $17.58 million for Red Dragon in March 2026.Source: federal-government
What are AeroVironment's FY2030 financial targets?
At its 8 July 2026 Investor Day, AeroVironment targeted $3.5-4.0 billion in revenue by FY2030 (15-20% organic CAGR), 18-20% adjusted EBITDA margins, and 7-9% of revenue invested in R&D, its first forward guidance since disclosing an $87.3 million restatement on 29 June.Source: BusinessWire / StockTitan
Why is AeroVironment expanding into Germany and Italy?
In July 2026 AeroVironment won a $30 million Puma Systems Stack contract for Germany's LARUS programme via the NATO Support and Procurement Agency, and received an MQ-31A type designation from Italy's Ministry of Defence, its first formal foothold there, extending its NATO-member customer base beyond the US Army.Source: AeroVironment newsroom
What did AeroVironment win from JIATF-401 in July 2026?
On 6 July 2026 Joint Interagency Task Force 401 awarded AeroVironment a three-year, $500 million Domestic Shield IDIQ plus a same-day $80.5 million Titan Multi-Sensor contract, $580.5 million total, mirroring the task force's earlier $500 million Merops IDIQ to Perennial Autonomy.Source: AeroVironment newsroom
Why is AeroVironment's Red Dragon controversial with regulators?
Red Dragon's autonomous target classification in GPS-denied environments operates without human-in-the-loop oversight when communications are severed. No DoD policy currently defines rules for autonomous target engagement without human review, raising regulatory and export-licence concerns.
How does the Switchblade 400 compare to the Switchblade 300 and 600?
The Switchblade 300 is a man-portable anti-personnel munition; the 400 is a larger anti-armour system with 65 km range and 35-minute endurance; the 600 is the longest-range variant. AeroVironment runs all three as concurrent Army programmes.
How is AeroVironment growing its business in 2026?
AeroVironment made three major acquisitions in two years: BlueHalo for $4.1 billion in 2025 (directed energy) and ESAero for $200 million in March 2026 (Counter-UAS engineering). It secured $135 million in Army contracts and delivered its LOCUST X3 laser for formal EHEL evaluation. Integration cost and the EHEL timeline are the two key near-term risks.Source: industry-report
Why has AeroVironment been buying so many companies?
AeroVironment has made three acquisitions in two years: SkyHydro (EW), BlueHalo ($4.1B, directed energy), and ESAero ($200M, Counter-UAS drones), transforming from a reconnaissance drone specialist into a full-spectrum Counter-UAS company.Source: Background
How much has AeroVironment spent on acquisitions in two years?
AeroVironment acquired BlueHalo for $4.1 billion in 2025 and ESAero for $200 million in March 2026, totalling over $4.3 billion in two years, adding directed-energy, electronic warfare, and Counter-UAS drone capabilities.
Source Material
AeroVironment — WikipediaAeroVironment — Official Website