AeroVironment Inc. secured a $500 million firm-fixed-price contract from the U.S. Army. The agreement provides commercial counter-unmanned aerial systems to detect and defeat small drones. The contract period extends through June 2029. Specific work locations and funding will be determined with each individual order.
AeroVironment shares jumped over 10% on July 2 following the announcement. The award strengthens the company's position in the expanding defense technology sector. This deal follows a strong quarterly earnings report for the company. The contract provides increased revenue visibility through fiscal year 2027.