AeroVironment Secures $117M Army Drone Contract

AeroVironment Secures $117M Army Drone Contract

AeroVironment Inc (NASDAQ:AVAV) announced a $117.3 million contract from the U.S. Army for its P550 electric vertical take‑off and landing (eVTOL) unmanned aerial system. The award, issued under a Basic Ordering Agreement through the Army’s Unmanned Aircraft Systems Marketplace initiative and a competitive Call for Solutions within the Long Range Reconnaissance program, covers 82 P550 systems intended for the Army’s Battalion Reconnaissance effort and represents the initial full‑rate procurement of the platform.

The P550 is a Group 2 autonomous eVTOL UAV with a multi‑sensor payload capacity of up to 15 lb, five‑hour all‑battery endurance, and a modular open‑systems architecture that permits integration of third‑party payloads, datalinks and mission‑planning software. It can be reconfigured in the field in less than five minutes without tools, allowing operators to swap payloads and batteries rapidly.

The system is designed for intelligence, surveillance and reconnaissance, precision‑strike, electronic‑warfare and communications‑relay missions across air, ground and maritime domains. “The P550 gives maneuver forces the ability to rapidly reconfigure, extend their reach, and deliver effects across domains, all while operating in contested environments where speed and autonomy are decisive,” said Wahid Nawabi, Chairman, President and Chief Executive Officer of AeroVironment.

Following the announcement, AVAV shares rose 2.7 % in pre‑market trading on Monday.

AeroVironment is a defense‑technology company that develops autonomous systems, loitering munitions, counter‑UAS technologies and other defense capabilities.