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AeroVironment Stock Rises 6% as Army Awards First-Ever Directed-Energy Deal
Why is AeroVironment stock up today?
AeroVironment (AVAV) stock rose 6% to $153.93 on Thursday after the Army awarded a $464.8 million Enduring High-Energy Laser contract, the first-ever U.S. directed-energy production deal.
Key numbers
| Army E-HEL Contract | $464.8MFirst-ever U.S. directed-energy production deal |
|---|---|
| Air Force BlueHalo Contract | $99.8MSpace systems R&D, announced Sep 11 (per [3]) |
| AVAV Stock Move (Sep 3) | +6%to $153.93, on Army E-HEL announcement day (per [4]) |
| Funded Backlog | $1.5B+37% year-over-year as of August 1, 2026 |
| Q1 FY2027 Revenue | $480.5MRecord quarter; FY2027 guidance $2.125B–$2.225B |
| LOCUST X3 Cost Per Shot | <$5vs. $50,000+ for a conventional interceptor missile |
What happened
AeroVironment (AVAV) stock rose 6% to $153.93 on Thursday after the Army awarded a $464.8 million Enduring High-Energy Laser contract, the first-ever U.S. directed-energy production deal. The contract funds dozens of LOCUST X3 30-kilowatt laser systems that can destroy enemy drones for under $5 each — a fraction of a conventional missile's cost. A second win arrived September 11 when AeroVironment's BlueHalo space division secured $99.8 million from the Air Force for military space systems research, sending the stock up another 4.6% the following Monday. Together the September awards added roughly $565 million to a funded backlog already at $1.5 billion as of August 1, 2026.
Why it matters
AeroVironment's laser and space contracts mark the first time directed-energy weapons move from government experiment into battlefield production in U.S. history. That shift matters because modern battlefields are flooded with cheap commercial drones, and a conventional missile to destroy one can cost $50,000 or more — many times the price of the target. A $5-per-shot laser fed by electricity removes that cost imbalance, and the Army has now committed to buying them in quantity.
Who this affects
- MarketbullishMedium impact
- Defense drone investors get a sector-wide re-rating catalyst.
- CompanybullishHigh impact
- AVAV confirmed as America's first directed-energy production supplier.
- CompetitorsmixedLow impact
- Kratos and other defense tech peers gain sentiment read-across.
- IndustrybullishHigh impact
- Laser weapons shift from prototype into battlefield production globally.
AeroVironment vs Kratos, L3Harris
| AeroVironmentAVAV:NASDAQ | $7.9B | -40% | 47x | +84% |
|---|---|---|---|---|
| Kratos DefenseKTOS:NASDAQ | $8.9B | -37% | 52x | +19% |
| L3Harris TechnologiesLHX:NYSE | $46.7B | -15% | 20x | +7% |
As of 2026-09-16
How we got here
AeroVironment completes $4.1B BlueHalo acquisition, adding space and directed-energy divisions.
Pentagon awards AeroVironment $500M counter-drone systems contract.
Army awards $464.8M E-HEL contract — first-ever U.S. directed-energy production deal.
AeroVironment secures first international LOCUST order, valued over $50M (per).
BlueHalo wins $99.8M Air Force space systems R&D contract; AVAV adds 4.6% Monday.
What to watch
- First LOCUST X3 deliveries to Army, initial systems expected within 12 months.Q3 2027
- DoD FY2028 budget request for directed-energy and counter-drone funding expansion.Q1 2027
- Q2 FY2027 earnings; FY2027 revenue guidance midpoint $2.175B in focus.2026-12
Educational content only. Not investment advice.
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