AeroVironment (AVAV) shares jumped more than 9% on Friday. The stock gained 25% over the course of the week.
The U.S. Army awarded the company a contract valued at a minimum of $400 million. This agreement covers the production of the Locust system.
Locust is an AI-assisted, high-energy laser platform. The system tracks and destroys small- to medium-sized drones.
This marks the Pentagon's first production contract for a directed-energy, counter-drone system. The deal moves the technology from the prototype phase to battlefield deployment.