Key Highlights
- AeroVironment secured a $464.8 million agreement with the U.S. Army for its Enduring-High Energy Laser (E-HEL) initiative.
- The deal marks the U.S. military’s inaugural production agreement for directed-energy technology.
- The company will supply multiple Locust X3 30-kilowatt laser platforms across the coming years.
- These systems are designed to neutralize small unmanned aircraft in Groups 1-3 and will work with vehicles such as the Joint Light Tactical Vehicle.
- Shares of AVAV finished the trading day up nearly 1%, with an additional 0.25% increase during extended hours.
On Tuesday, AeroVironment (AVAV) announced it had been awarded a $464.8 million contract by the U.S. Army, propelling shares up almost 1% during standard trading hours with another 0.25% bump after the closing bell.
The agreement supports the Enduring-High Energy Laser (E-HEL) initiative and marks a historic milestone as the nation’s first directed-energy weapons production procurement. This represents a significant turning point for the technology.
Issued through the Army’s Portfolio Acquisition Executive for Fires (PAE Fires) office, the contract calls for AeroVironment to manufacture and deploy numerous Locust X3 laser platforms throughout the upcoming years, complete with training and operational support.
Understanding the Locust X3 Technology
The Locust X3 represents a 30-kilowatt directed-energy platform engineered to eliminate small unmanned aerial systems without relying on traditional munitions or projectiles. Its modular design allows deployment across various military platforms and vehicle types.
Initial integration efforts will focus on the Joint Light Tactical Vehicle (JLTV). The Army is also exploring palletized versions and evaluating compatibility with the Infantry Squad Vehicle (ISV).
Powered by AeroVironment’s AV Halo artificial intelligence targeting software, the platform operates as part of the company’s comprehensive Halo Shield counter-unmanned aircraft architecture.
The primary mission of the Locust X3 centers on defeating Group 1 to Group 3 unmanned aircraft systems, which represent an increasingly prevalent challenge on contemporary battlefields.
Transition From Prototype to Fielded System
The E-HEL initiative evolved from the Army’s Multi-Purpose High Energy Laser (AMP-HEL) prototype program. The Locust platform underwent extensive evaluation at White Sands Missile Range under Joint Interagency Task Force 401, where it proved its capability to safely and effectively neutralize drone threats.
These trials also facilitated a crucial DOD-FAA coordination agreement that authorized domestic deployment of the system.
According to AeroVironment CEO Wahid Nawabi, this contract signals directed energy’s evolution from experimental concept to operational military asset. This transition represents significant progress for a technology that has remained in developmental phases for an extended period without achieving full-scale production.
Manufacturing expansion will be supported by a $30 million capital investment in the company’s Albuquerque, New Mexico manufacturing campus, which was disclosed in March 2026.
AeroVironment has already showcased the Locust platform aboard the USS George H.W. Bush, suggesting potential naval applications that extend beyond this current Army agreement.
The company’s current offerings span loitering munitions, autonomous platforms, counter-drone solutions, space technologies, electronic warfare capabilities, and directed-energy systemsāa substantial evolution from its original position as a small unmanned aircraft provider.
This $464.8 million military contract establishes a substantial Army program within that portfolio and positions the company as a production leader in an emerging defense sector receiving significant Pentagon attention and resources.
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