AV’s LOCUST® Selected for Nearly $500 million Army Counter-UAS Contract for Enduring-High Energy Laser (E-HEL) Program

ARLINGTON, Va.--(BUSINESS WIRE)--Sep 2, 2026--

AeroVironment, Inc. (“AV”) (NASDAQ: AVAV), a global leader in proven autonomous and counter-drone systems, today announced it has been awarded a landmark contract valued at $464.8 million by the U.S. Army Portfolio Acquisition Executive for Fires (PAE Fires) program office for the Enduring-High Energy Laser (E-HEL) program.

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This award represents the first-ever production contract for directed energy systems in United States history, signaling a historic transition from prototype to production for laser weapon systems.

“This award marks a defining moment not only for AV, but for the future of modern defense,” said Wahid Nawabi, Chairman, President, and Chief Executive Officer at AV. “The transition of directed energy from experimentation to an enduring, fielded capability reflects years of collaboration, innovation, and operational success alongside the U.S. Army. We are proud to deliver these production systems and support the Army’s mission with scalable, modular, and cost-effective defense solutions.”

Under this Other Transaction Agreement (OTA), AV will deliver dozens of LOCUST ® X3 laser weapon systems over the next few years in support of multi-year fielding requirements, advancing the Army’s layered air defense capabilities against group 1-3 unmanned aircraft systems (UAS) while also solidifying directed energy as a cornerstone of future battlefield operations.

AV's LOCUST X3, a 30-kilowatt platform-agnostic system, will be integrated with various platforms such as the Army's Joint Light Tactical Vehicle (JLTV), with options for palletized configurations, while analyzing the potential to integrate on an Infantry Squad Vehicle (ISV) in the near future. As part of the program, AV will also provide ongoing system support and training.

The E-HEL program builds upon the success of the Army Multi-Purpose High Energy Laser (AMP-HEL) prototypes currently in use by the Army.

The contract follows LOCUST’s successful testing at White Sands Missile Range, led by Joint Interagency Task Force 401 (JIATF-401) and PAE Fires, which demonstrated safe, effective counter-drone operations in U.S. airspace and directly enabled a DOW–FAA safety agreement validating the system for domestic use.

By entering production, the E-HEL program enables the Army to field a sustainable, scalable, and cost-effective solution against UAS. The ramp up in production will be supported by a $30 million investment in AV’s Albuquerque, NM facility that was announced in March of 2026.

“This program represents the culmination of years of operational lessons learned and rapid prototyping,” said John Garrity, Vice President of Directed Energy Systems at AV. “E-HEL is not a future capability, it is a production-ready system, built on proven technology, and designed to meet the demands of today’s fight while scaling for tomorrow’s threats.”

The award further reinforces AV’s leadership in directed energy and its role as a trusted partner to the U.S. Department of War. The company’s platform-agnostic approach enables integration across multiple mission sets and platforms, ensuring flexibility and rapid deployment in diverse operational environments.

As the Army transitions to procurement at scale, the E-HEL program establishes a foundation for sustained production, innovation, and fielding of next-generation laser weapon systems, delivering capability “at the speed of light.”

About LOCUST®

AV’s LOCUST family of directed energy systems represents a breakthrough in counter-UAS defense, delivering precise, scalable, and cost-effective protection against evolving aerial threats. Its performance was recently featured on CBS News’ 60 Minutes, underscoring its growing relevance in modern defense and broader adoption. LOCUST was also successfully demonstrated aboard the U.S. Navy’s USS George H.W. Bush. The system was also validated in joint testing with JIATF-401 at White Sands Missile Range, a demonstration that informed Department of War and Federal Aviation Administration coordination on the safe use of lasers in domestic airspace. The latest evolution, LOCUST X3, introduces enhanced power, modularity, and AV_Halo™ AI-driven targeting and serves as a key effector within AV’s Halo_Shield™ architecture.

About AV

AeroVironment (“AV”) (NASDAQ: AVAV) is a defense technology leader delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, loitering munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities—built to meet the mission needs of today’s warfighter and tomorrow’s conflicts. At the core of these technologies lies AV_Halo™, a modular, mission-ready suite of AI-powered software tools that empowers warfighters and enables full-battlefield dominance: detect, decide, deliver. With a national manufacturing footprint and a deep innovation pipeline, AV delivers proven systems and future-defining capabilities at speed, scale, and operational relevance. For more information, visit www.avinc.com.

Safe Harbor Statement

Certain statements in this press release may constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties, which could cause actual results to differ materially. Factors that may cause such differences include, but are not limited to, our ability to perform under existing contracts and obtain new ones; regulatory changes; competitor activities; market growth; product development challenges; and general economic conditions. For a more detailed discussion of these risks, please refer to AeroVironment’s filings with the Securities and Exchange Commission. We undertake no obligation to update forward-looking statements as a result of new information or future events.

AV’s LOCUST® selected for $464.8 million counter-UAS contract award by the U.S. Army. The award represents the first-ever procurement for directed energy systems in United States history, signaling a historic transition from prototype to production for laser weapon systems. (Rendering for illustrative purposes only.)

WASHINGTON (AP) — Dan Driscoll has announced that his last full day as U.S. Army secretary is Wednesday, but his social media post offered no explanation for why he is stepping down after 18 months as the service's civilian leader.

Driscoll is a friend of Vice President JD Vance and has good relationships with both Republicans and Democrats in Congress. But tensions with Defense Secretary Pete Hegseth have been widely reported, and some of Driscoll's allies in the Army were ousted this year by President Donald Trump's Pentagon chief.

Driscoll spoke with Trump on the current state of the Army before he submitted his resignation this week, The Associated Press has reported.

Any concerns were absent from Driscoll's post on X late Tuesday night, which was his first public statement since the White House confirmed his departure Monday. Driscoll said it has been “the honor of a lifetime” to serve as Army secretary under Trump and Hegseth.

Driscoll praised the soldiers, their families and the Army's civilian workforce for helping “modernize and accelerate how the Army mans, trains, and equips the most lethal fighting force on the face of the earth.”

“We could not have made the progress we did without the support of Secretary Hegseth,” he added.

His exit comes as the U.S. military has returned to launching airstrikes against Iran after a lull in hostilities during the more than six-month-old war, leaving the nation's largest fighting force without top civilian or uniformed leaders who have been confirmed by the Senate. It was not immediately clear who would fill Driscoll's role at least temporarily.

Hegseth in April ousted the Army's top uniformed leader, Gen. Randy George, an ally of Driscoll. Gen. Christopher LaNeve took over as the Army’s acting chief of staff and recently pulled the plug on a drone modernization program that Driscoll had championed.

A bipartisan group of U.S. lawmakers sent a letter this week to Driscoll and LaNeve to express “deep concerns" about eliminating the specialized drone unit and to request a briefing from the Army to explain its decision.

As Army secretary, Driscoll was a major force behind efforts to cut the red tape so military contractors could quickly develop more drones and counter-drone capabilities as modern warfare evolves.

Driscoll also was tapped last year for the unusual assignment of key negotiator to try to end the war between Russia and Ukraine.

White House spokeswoman Anna Kelly noted Driscoll's role in those negotiations in Monday's statement on his resignation, adding that Driscoll provided “outstanding leadership during historic military operations, restoring an emphasis on readiness and lethality.”

Both Republicans and Democrats have lamented Driscoll's resignation, while some used it as an opportunity to criticize Hegseth's leadership.

“Secretary Hegseth is cultivating a culture where dissent is punished and competence is secondary to personal allegiance,” Rhode Island Sen. Jack Reed, the top Democrat on the Senate Armed Services Committee, said Monday.

Sen. Thom Tillis, a North Carolina Republican who is retiring and sometimes has clashed with Trump, urged the president in a social media post Wednesday to “find a new leader at the Pentagon who will retain and empower our military talent rather than diminish it.”

Besides George, Hegseth has fired more than a dozen top generals and admirals without explanation since he took office last year.

Before Hegseth was confirmed last year, Tillis had held out support until only moments before casting a crucial vote in favor of the defense secretary.

“If we had a @SecWar who maintained the same priorities and forward-thinking, he would be fighting to retain talented leaders like Dan and the many flag officers he has forced into retirement,” Tillis said on X. “Instead, he is creating a leadership void at the top of our military ranks.”

Republican Sen. Mike Rounds of South Dakota predicted Tuesday that senators will have serious questions for the Pentagon when they return to Washington in two weeks.

“I’m hearing the same language everybody else is, that he was frustrated with some of his top generals being released,” Rounds said of Driscoll. “That’s not the first time I’ve heard that, and I think that points to questions that we’re going to be asking when we get back, in terms of where is the leadership?”

Asked if he is still confident in Hegseth, Rounds said, “It’s a matter of whether or not the president is.”

The Pentagon did not immediately respond to an email seeking comment on the criticism against Hegseth over Driscoll’s resignation.

Some Republicans defended Hegseth's leadership.

“I think Secretary Hegseth has every authority to go out there and say, ‘We’re going to have the right people cover in interim or in permanency, making sure they’re the most well equipped, they’re the most motivated, they’re the most driven to go out there, train, and be ready for their job,’” said Florida Republican Rep. Brian Mast, the chairman of the House Foreign Affairs Committee.

FILE - U.S. Army Secretary Dan Driscoll speaks at the America 250 celebration at Fort Bragg in Fayetteville, N.C., June 10, 2025. (AP Photo/Karl DeBlaker, File)