AV Awarded $117.3 Million U.S. Army Production Contract for P550™

Key Terms

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.

uas technical

UAS stands for Unmanned Aircraft System, the complete setup that lets a remotely piloted aircraft (commonly called a drone) fly safely — including the aircraft itself, the ground controller, communications links and supporting equipment. Investors watch UAS because rules, technology and demand for tasks like surveying, delivery or aerial inspection directly affect companies’ sales and regulatory costs; think of it as a vehicle plus its keys, radio and support crew that together determine whether it can operate profitably.

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A basic ordering agreement is a pre-arranged contract framework between a buyer (often a government or large organization) and a supplier that sets prices, terms, and conditions for future purchases without committing the buyer to any specific quantity or delivery date. Think of it like a store catalog and price list agreed in advance: individual orders are placed later under those agreed rules. For investors, it matters because it can speed sales and signal a pipeline of possible future revenue even though it does not guarantee purchases.

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ISR stands for socially responsible investing (from the French phrase Investissement Socialement Responsable) and means choosing stocks, bonds or funds based on environmental, social and governance criteria in addition to financial return. Like picking a brand that matches your values, ISR matters to investors because it helps align portfolios with personal or institutional priorities, can reduce exposure to companies with regulatory or reputational risks, and can influence demand and valuation for firms deemed more sustainable.

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Initial Order Enhances LRR and Advances Army Drone Dominance Initiative with AV’s Autonomous Group 2 eVTOL UAS

ARLINGTON, Va.--(BUSINESS WIRE)-- AeroVironment, Inc. (“AV”) (NASDAQ: AVAV), a global leader in intelligent, multi-domain autonomous systems, today announced it has been awarded a $117.3 million contract by the U.S. Army for its P550™ electric vertical take-off and landing (eVTOL) unmanned aerial system in support of the Army’s Long Range Reconnaissance program, advancing the Army’s push to field scalable, adaptable capabilities for modern warfare.

AV’s P550 modular UAS delivers mission-ready adaptability, features rapid payload swaps, multi-sensor integration, and up to five hours of all-electric endurance to support ISR, strike, and relay missions across contested environments. (Photo Credit: AV)

The award was issued under a Basic Ordering Agreement (BOA) through a competitive Call for Solutions (C4S) under the U.S. Army’s Unmanned Aircraft Systems (UAS) Marketplace initiative, a centralized digital platform designed to accelerate the procurement of vetted drone technologies.

Through this award, AV will provide 82 P550 uncrewed aircraft systems in support of the Army's Battalion Reconnaissance (UAS) effort, a move that represents the initial full-rate procurement of the P550 system and reflects the Army's commitment to rapidly fielding proven commercial capabilities that enhance long-range reconnaissance, autonomy, and distributed operations.

The award further reinforces AV's role in delivering scalable, mission-ready solutions aligned with the Army's modernization priorities.

“In today’s battlespace, adaptability is no longer an advantage, it’s a requirement,” said Wahid Nawabi, Chairman, President and Chief Executive Officer at AV. “The P550 gives maneuver forces the ability to rapidly reconfigure, extend their reach, and deliver effects across domains, all while operating in contested environments where speed and autonomy are decisive.”

An autonomous Group 2 eVTOL UAS, AV’s P550 has become a staple of reliability for America’s armed forces and allies by enabling smarter and safer operations through its modular open systems approach (MOSA), which supports seamless integration of third-party payloads, datalinks, and mission planning software to adapt to evolving mission requirements.

With a multi-sensor payload capacity of up to 15 pounds, including enhanced lethality options, and up to five hours of all-battery endurance, the P550 delivers sustained, mission-tailored performance across intelligence, surveillance and reconnaissance (ISR), precision strike, electronic warfare, and communications relay missions in air, ground, and maritime operations. The system can be reconfigured in the field in less than five minutes, allowing operators to hot-swap payloads and batteries without tools.

“What operators consistently tell us is that they need systems that can adapt at the speed of the mission, not hours or days later,” said Trace Stevenson, President of Autonomous Systems at AV. “AV’s P550 delivers that advantage, enabling units to reconfigure in minutes. It reduces the burden on operators while expanding what a single platform can achieve.”

Purpose-built for dynamic, contested environments, AV’s P550 enhances situational awareness and force protection with integrated targeting and precision strike capabilities. Its AI-driven autonomy enables smarter, safer operations while reducing operator workload in complex mission sets. Designed for maneuver forces, it delivers a multi-role capability that can be reconfigured in minutes to meet evolving mission demands.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260720381921/en/

Media Contact:
BJ Koubaroulis
pr@avinc.com
747.324.5358

Investor Contact:
Denise Pacioni
ir@avinc.com
805.795.4108

Source: AeroVironment, Inc.