AeroVironment Awarded $874M Foreign Military Sales IDIQ to Deliver UAS and C-UAS Systems to Allied & Partner Forces

Key Terms

indefinite delivery, indefinite quantity (idiq) financial

Indefinite delivery, indefinite quantity (IDIQ) is a flexible contract method that allows a buyer to order an unspecified amount of goods or services over a period of time. It functions like a restaurant that agrees to provide meals whenever needed, up to a maximum amount, rather than committing to a fixed quantity upfront. For investors, IDIQ contracts offer ongoing opportunities and potential stability in revenue streams, though they also involve uncertainty about exact future orders.

foreign military sales (fms) regulatory

Foreign military sales (FMS) are government-to-government transactions where one country sells defense equipment, technology, or services to another, often as part of official agreements. These sales can influence global stability and economic relations, making them important for investors to monitor, as they can impact defense company revenues and geopolitical dynamics.

unmanned aerial systems (uas) technical

Unmanned aerial systems (UAS) are drones plus the ground controllers, communications links, sensors and software that let them fly and perform tasks without a pilot onboard — think of a radio‑controlled aircraft teamed with a mobile command center. They matter to investors because UAS open new markets and revenue streams across delivery, agriculture, mapping, inspection and defense, while their value and risks hinge on regulation, safety, and technological reliability.

c-uas technical

c‑UAS (counter‑unmanned aircraft system) are integrated tools and procedures used to detect, track, and stop unauthorized drones—like a security system that sees and disables an intruder in the sky. Investors watch c‑UAS because rising drone use and tighter rules create demand for hardware, software, and services, which can drive sales growth and affect regulatory risk for companies in defense, airports, utilities, and event security.

vertical takeoff and landing (vtol) technical

An aircraft design that can lift off and touch down vertically without needing a runway, like a helicopter or newer electric short-range models, enabling point-to-point travel from small pads or rooftops. Investors care because VTOL technology changes who can provide transportation and how much it costs to operate and scale — similar to how ride-sharing changed ground transport — so its commercial readiness, safety, infrastructure needs and production costs can materially affect manufacturers, service providers and related supply chains.

evtOL technical

eVTOL stands for "electric vertical takeoff and landing" aircraft, which are small, electric-powered vehicles capable of taking off and landing vertically like a helicopter. They are designed to provide quick, on-demand transportation within cities or between locations, potentially transforming urban mobility. For investors, eVTOLs represent a growing segment of innovative transportation technology with potential for significant market impact and future growth.

intelligence, surveillance, and reconnaissance (isr) technical

Intelligence, surveillance, and reconnaissance (ISR) is the suite of tools and activities used to collect, analyze, and share information about people, places, or objects—using sensors such as satellites, aircraft, drones, cameras, or electronic signals—to give decision-makers a clear picture of what is happening. Investors care because ISR drives defense and security spending, supports recurring contracts for hardware, software, and data services, and can signal shifts in technology demand and geopolitical risk much like a bank account reveals financial health.

ai/ml-driven technical

ai/ml-driven describes products, services, or operations that rely primarily on artificial intelligence or machine learning models to make decisions, automate tasks, or extract insights from data. For investors, this signals potential for faster scaling, lower labor costs, and new revenue opportunities—like a factory adding robots—but also higher dependence on data quality, model reliability, and ongoing technical investment, which can affect costs, regulatory risk, and long‑term competitiveness.

ARLINGTON, Va.--(BUSINESS WIRE)-- AeroVironment (AV) (NASDAQ: AVAV), a global leader in all-domain autonomous systems, has been awarded a five-year Indefinite Delivery, Indefinite Quantity (IDIQ) contract worth $874.26 million from the U.S. Army Contracting Command. This contract will support future foreign military sales (FMS) through the Program Executive Office (PEO) Aviation, enabling allied and partner forces to procure a range of Groups 1-3 unmanned aerial systems (UAS) and counter-UAS (C-UAS) systems from AV’s extensive portfolio of defense technology offerings. The systems available under this IDIQ contract include specific variations of the JUMP 20™, P550™, Puma™, Raven™, and Titan C-UAS™ systems along with training, initial spares packages, and logistics support.

AV awarded $874.26 million IDIQ contract from the U.S. Army Contracting Command to support future foreign military sales (FMS) of its JUMP 20™ (pictured), P550™, Puma™, Raven™, and Titan C-UAS™ systems along with training, initial spares packages, and logistics support. [Credit: AV]

“We are delivering innovative defense technologies to meet our national security priorities – at home and abroad,” said Justin McFarlin, Vice President of International Business Development for AV. “Our autonomous technologies are battle-proven and trusted, giving warfighters unparalleled mission flexibility, situational awareness, and a sphere of protection against threats–all within lightweight, easy-to-transport, easy-to-deploy systems. This contract will help accelerate our ongoing efforts to get these critical capabilities to warfighters around the world.”

The JUMP 20 is a vertical takeoff and landing (VTOL), fixed-wing uncrewed aircraft that gives operators advanced multi-sensor intelligence, surveillance, and reconnaissance (ISR) services. The platform can be set up and operational in less than 30 minutes without a runway or additional launch or recovery equipment, delivering 13+ hours of endurance and an operational range of 185 km (115 mi). With its flexible payload options and highly customizable features, the JUMP 20 is ideal for multi-mission operations.

AV’s latest autonomous Group 2 eVTOL system, the P550, is redefining battlefield adaptability with rapid deployment, effortless in-field payload swapping, advanced situational awareness, and target and strike capabilities. Its proven AI and autonomy enable smarter, safer operations for maneuver forces with up to 5 hours of all-battery powered operation. Built on an open and scalable architecture, the P550 is designed to keep pace with technological advancements at low cost and risk.

The all-environment Puma delivers unmatched portability, modular adaptability, and precision targeting in a compact Group 2 UAS platform for both land and maritime operations. The platform offers secondary payloads, third-party application integrations, and multi-mission capabilities for day, night, and low-light operations in extreme environments. The Puma VTOL Kit, Puma™ VNS (Visual Navigation System), Laser Target Designator, and Universal Gimbal Kit expand operational capabilities.

Raven is the most widely deployed sUAS in the world. It is designed for rapid deployment and high mobility in military or commercial operations that require low-altitude intelligence, surveillance, and reconnaissance. The Raven is hand-launched and has an operational range of 6.2 miles (10 kilometers), providing situational awareness–day or night–with real-time video or infrared imagery to ground control and remote viewing stations.

AV’s Titan radio frequency (RF)-based C-UAS can be rapidly deployed in the most challenging rural and urban environments to detect and defeat threats. It is adaptable for mobile, dismounted, and fixed-site missions. With automated point-and-click functionality, intelligent AI/ML-driven analysis, and advanced C2 interoperability, Titan provides precise countermeasure control while minimizing disruption to blue force communications. With more than 1,000 units operationally deployed, Titan is actively protecting warfighters, allies, and critical infrastructure on frontlines around the world.

“AV’s platforms are deployed around the world, supporting the most important missions for our national security and the protection of our allies,” said Jason Hendrix, Vice President of Small Uncrewed Systems for AV. “We’re continually looping frontline feedback into our platforms and scaling production to meet the mission, ensuring that our warfighters have the tools and technologies they need to stay ahead of evolving threats.”

About AeroVironment

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, including statements of work under IDIQ contracts; risks related to conducting business internationally; 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.

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Source: AeroVironment