What is the AeroVironment Red Dragon drone?: Red Dragon is a loitering munition with 400 km range that can autonomously classify and engage targets via the SPOTR-Edge system even in GPS-denied or communications-degraded environments. The Army awarded AeroVironment $17.58 million for it in March 2026.Source: Background
What is the EHEL competition and why has it been delayed?: EHEL (Enduring High Energy Laser) is an Army competition to select a production-ready high-energy laser for counter-drone use. It has slipped to Q4 FY26 at the earliest. AeroVironment is preparing an entrant with its LOCUST X3 technology.Source: Background
How much does it cost to shoot down a drone with the AeroVironment laser?: AeroVironment's LOCUST X3 directed-energy weapon has a per-kill cost of roughly $5, compared to $1-3 million for a conventional interceptor missile.Source: Quick facts
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
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 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 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
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
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
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.
What is AeroVironment's LOCUST X3 laser and can it replace missiles?: LOCUST X3 is a directed-energy weapon that intercepts drones at approximately $5 per kill, compared to thousands for a missile. Four units were delivered to the Army's RCCTO in April 2026 for the Enduring High Energy Laser competition, winner selection expected Q4 FY26.Source: AeroVironment / Army RCCTO
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 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.

Background

AeroVironment (Nasdaq: AVAV) is one of the longest-established US military drone companies, tracing its origins to engineer Paul MacCready's work in the 1970s and supplying the Pentagon with small tactical UAS since the 1990s. Today it operates across loitering munitions, reconnaissance drones, directed energy, and Counter-UAS payloads. The $4.1 billion BlueHalo acquisition in 2025 added directed-energy and electronic warfare capabilities; the $200 million acquisition of ESAero in March 2026 added 300 engineers and counter-UAS drone capacity.

In March 2026 the Army released $135 million in contracts: $17.58 million for the Red Dragon loitering munition and $117.3 million for the P550 long-range reconnaissance drone. AeroVironment unveiled the LOCUST X3 directed-energy weapon at AUSA Global Force in March 2026, a laser system for drone interception at approximately $5 per kill. In April 2026, four LOCUST X3 units were delivered to the Army's Rapid Capabilities and Critical Technologies Office for Enduring High Energy Laser (EHEL) evaluation. The EHEL competition winner selection slipped from Q2 to Q4 FY26.

On 4 May 2026 the US Army selected Switchblade 400 under the Low Altitude Stalking and Strike Ordnance (LASSO) Other Transaction Authority. The Army is requesting $110 million in LASSO procurement for Fiscal Year 2027 with a planned programme ceiling of approximately $1.2 billion through FY2031. The Switchblade 400 has 65 km range, 35-minute endurance, and 39 lbs all-up weight, deployable by a single soldier in under five minutes with day-night EO/IR sensors and autonomous target recognition. AeroVironment simultaneously holds active Army programmes for Switchblade 300, Switchblade 400, and Switchblade 600 — three separate loitering munition tiers running concurrently. The LASSO win, combined with Red Dragon and EHEL, means AeroVironment is now the primary supplier across loitering munitions, reconnaissance, and directed energy for the US Army's organic drone portfolio.

Source Material

AeroVironment — Wikipedia AeroVironment — Official Website

How the World Sees Them

US Army

Committed to AeroVironment across LASSO, Red Dragon, P550, and EHEL simultaneously; three Switchblade tiers running concurrently signal consolidation of loitering munitions around one supplier.

Export customers

Red Dragon's autonomous targeting capability triggers ITAR export scrutiny; allies want the capability but US autonomous weapons policy uncertainty slows approvals.

Competing laser firms

The EHEL slip gives Epirus (Leonidas AGV) additional runway; LOCUST X3 delivery to RCCTO raised the bar for the Q4 FY26 competition.

AeroVironment shareholders

Three major acquisitions in two years combined with LASSO win and EHEL delay creates near-term integration cost pressure; directed-energy revenue pushed into FY27.

Competing laser firms (Epirus, Northrop)

The EHEL slip gives Epirus (Leonidas AGV) and others additional runway to refine their entries; AeroVironment's LOCUST X3 debut at AUSA raised the competitive bar.