AeroVironment, Inc. (NASDAQ: AVAV) said it has been awarded a $464.8 million U.S. Army contract under the Enduring-High Energy Laser (E-HEL) program to deliver LOCUST® X3 laser weapon systems for counter-unmanned aircraft missions.

• AeroVironment said the U.S. Army PAE Fires program office awarded the company an Other Transaction Agreement (OTA) valued at $464.8 million for E-HEL.
• The company said it will deliver “dozens” of LOCUST® X3 systems over the next few years to support multi-year fielding requirements against group 1-3 unmanned aircraft systems (UAS).
• LOCUST X3 is described as a 30-kilowatt, platform-agnostic system intended for integration on platforms including the Army’s Joint Light Tactical Vehicle (JLTV), with an option for palletized configurations; the company said it is also analyzing potential integration on an Infantry Squad Vehicle (ISV).
• AeroVironment said it will provide ongoing system support and training as part of the program.
• The company said the E-HEL program builds on prior Army Multi-Purpose High Energy Laser (AMP-HEL) prototypes currently in use by the Army and follows LOCUST testing at White Sands Missile Range led by JIATF-401 and PAE Fires.
• AeroVironment said it plans a production ramp supported by a previously announced $30 million investment in its Albuquerque, New Mexico facility.

What happened?

AeroVironment announced it has received a $464.8 million award from the U.S. Army PAE Fires program office for the Enduring-High Energy Laser (E-HEL) program, which the company described as a move into production for directed energy systems. Under the OTA, the company said it will deliver dozens of its LOCUST® X3 laser weapon systems over the next few years.

According to the release, LOCUST X3 is a 30-kilowatt system designed to integrate across multiple vehicle platforms, including the Army’s Joint Light Tactical Vehicle (JLTV), with palletized options, and with an evaluation underway for potential integration on an Infantry Squad Vehicle (ISV). The company also said it will provide training and ongoing support.

The company linked the program to prior prototype activity, including the Army Multi-Purpose High Energy Laser (AMP-HEL) prototypes and testing at White Sands Missile Range. It also referenced a previously announced $30 million manufacturing investment in Albuquerque, New Mexico to support production ramp-up.

Company Commentary

“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.”

“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.”

Why this matters for investors

The award is a material contract win in AeroVironment’s counter-UAS and directed energy segment, with a stated value of $464.8 million and a multi-year delivery schedule for dozens of systems. If executed as planned, it could support revenue visibility tied to production and fielding activity, along with associated support and training work.

The announcement also indicates a shift from prototype deployments to production delivery within the E-HEL program, which may reduce technology transition risk relative to earlier-stage development efforts. Separately, the company’s reference to a $30 million Albuquerque facility investment suggests planned capacity expansion aligned with the anticipated production ramp.