BlueHalo

BlueHalo became a subsidiary of AeroVironment when the $4.1 billion acquisition closed on 1 May 2025, creating the largest US small-UAS and counter-drone group. The combined entity now holds major Counter-UAS programmes across radio frequency jamming, directed energy, and kinetic Intercept. The integration cut both ways in June 2026: on 29 June AeroVironment reported record full-year revenue of $1.98 billion (up 141%), with BlueHalo alone contributing $282.3 million of a record $641.6 million fourth quarter and anchoring the Space, Cyber and Directed Energy segment's $149.2 million. Eight days earlier, AeroVironment had disclosed an $87.3 million restatement of a prior-quarter net loss after its goodwill impairment analysis for the Space reporting unit omitted an allocation tied to the stop-work of the BADGER phased-array antenna contract under the government's SCAR programme, prompting a new material weakness finding in internal controls.

Before the merger BlueHalo had acquired Citadel Defense (AI-driven RF defeat) and Verus Technology Group (high-power microwave), assembling the widest Counter-UAS portfolio in the US defence sector. Its Titan portable jammer is fielded by the US Marine Corps, which awarded a $22.8 million contract modification in March 2026 for additional Titan units. The 26 kW LOCUST laser weapon system destroyed every target in a US Army demonstration on a Stryker platform, and on 1 July 2026 the Army awarded AeroVironment a further $500 million, three-year layered counter-drone contract spanning Titan 4, Titan MS, the LOCUST X3 laser (20-35+kW), the Freedom Eagle FE-1 interceptor missile and AV_Halo COMMAND integration software.

The Arlington Capital Partners-nominated directors seated under the BlueHalo deal, David Wodlinger and Henry Albers, resigned from AeroVironment's board on 17 June 2026 without citing any disagreement with management; a week later former US Deputy Secretary of Defense William J. Lynn III joined as a Class I director, shrinking the board to nine seats. BlueHalo sits at the centre of the Pentagon's accelerating Counter-UAS investment cycle, where cheap attack drones have made layered defeat (RF, laser, kinetic) a doctrinal requirement rather than a niche capability, and where a single quarter can carry both a record top line and a restated loss from the same Space-segment lineage.