AeroVironment Secures $464.8M Army Laser Contract, Shares Rise 6%
AeroVironment (NASDAQ:AVAV) shares rose nearly 6% following the announcement of a first-of-its-kind U.S. Army directed-energy production contract worth $464.8 million for its LOCUST X3 laser weapon systems under the Enduring-High Energy Laser program. The deal marks the first large-scale production award in the field, signaling growing military interest in counter-drone technology and moving such weapons from prototype to deployment. The news also lifted smaller defense stocks like Red Cat Holdings (NASDAQ:RCAT) by 3% due to thematic read-acrosses within the sector. The REX Drone ETF (DRNZ) outperformed broader indices, while other directed-energy players including Kratos Defense & Security Solutions and Ondas Inc. saw modest gains despite being down year-to-date. AeroVironment plans to expand its Albuquerque facility by $30 million in support of the production ramp-up. The contract is expected to deliver revenue over multiple years, with a back-half fiscal 2027 focus.
Tickers: $AVAV $KTOS $ONDS $RCAT $UMAC
Topics: contract_award counter-drone directed-energy stock_movement