Shares of AeroVironment (AVAV +4.74%) rose sharply on Thursday after the drone designer was awarded a lucrative contract from the U.S. Army.
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Countering the drone threat
AeroVironment received a $500 million fixed-price contract for counter-unmanned aerial systems (C-UAS).
Conflicts in Ukraine and the Middle East have demonstrated the operational and cost-effectiveness of drones. They're also constant reminders of the increasingly vital importance of protecting soldiers, bases, ships, and other assets from these threats.
NASDAQ: AVAV
Key Data Points
The procurement agreement with the Army is projected to be completed by June 29, 2029.
Top-tier counter-drone technology
AeroVironment makes an array of anti-drone platforms. Its Titan 4 C-UAS uses radio frequency (RF) technology to disable drone threats. It's small, light, portable, and can be deployed in less than five minutes.
Additionally, AeroVironment's LOCUST X3 high-energy laser weapon system provides artificial intelligence (AI)-powered drone defense for less than $5 per shot -- and without the typical reload requirements of traditional systems.
These and other technologies are drawing the attention of the U.S. Defense Department and allied militaries. AeroVironment's revenue surged 133% year over year to $642 million in its most recent quarter, fueled by a 79% rise in its autonomous systems revenue to $492 million.
