AV Receives $186 Million U.S. Army Delivery Order for Next-Generation Switchblade Systems

Key Terms

explosively formed penetrator technical

An explosively formed penetrator is a type of warhead that uses a shaped explosive charge to deform a metal liner into a high-speed, focused projectile that punches through armor or hardened targets. For investors, it represents a distinct weapons capability that can affect defense contractors' product offerings, export controls, regulatory risk and geopolitical demand — akin to how a breakthrough engine design can reshape an automaker's market and supply chain.

loitering munition technical

A loitering munition is a weapon that flies like a small drone, waits over an area for a chosen target, and then detonates on impact or after striking — think of it as a flying, guided projectile that can loiter like a scout until the right moment. Investors care because these systems affect defense spending, export rules, and battlefield outcomes; demand, regulation, or combat losses can swiftly change a defense supplier’s revenue and political risk profile.

indefinite delivery, indefinite quantity financial

An indefinite delivery, indefinite quantity agreement is a standing contract that lets a buyer place orders over a set period without committing to exact quantities or delivery dates up front; think of it as a blank check for future purchases within agreed limits. For investors, it signals potential recurring revenue and a longer sales runway because the seller can receive multiple orders, but it also leaves some uncertainty in timing and total sales, so forecasts and valuation must account for that variability.

automatic target recognition technical

Automatic target recognition is a technology that uses sensors and software to identify and classify objects or points of interest without human intervention, like a camera that not only sees a car but also tells you its make and whether it’s moving. Investors care because ATR can drive sales and competitive advantage in markets such as defense, surveillance, and medical imaging, influence recurring-contract revenue, and raise regulatory and liability considerations that affect valuation.

manet radios technical

MANET radios are wireless communication devices that form a mobile ad hoc network where each unit connects directly with others and relays messages without relying on fixed cell towers or central routers. Investors pay attention because these radios enable reliable communications in defense, disaster response, and remote industrial settings where infrastructure is missing; success in supplying or improving MANET technology can translate into contracts, recurring sales, and a competitive edge, much like owning dependable bridges into hard‑to‑reach areas.

Army takes first steps into procuring upgraded Switchblade 600 Block 2 and Switchblade 300 Block 20 Explosively Formed Penetrator

ARLINGTON, Va.--(BUSINESS WIRE)-- AeroVironment, Inc. (“AV”) (NASDAQ: AVAV), a global leader in autonomous systems and precision strike solutions, today announced receipt of a $186 million delivery order from the U.S. Army for Switchblade® 600 Block 2 and Switchblade® 300 Block 20 explosively formed penetrator (EFP) loitering munition systems.

Switchblade 600 Block 2 advances long-range loitering strike with extended endurance, enhanced optics, and improved anti-armor performance, delivering precision effects against high-value threats when and where operators need it most.

The order was issued under the Army’s existing five-year, $990 million Indefinite Delivery, Indefinite Quantity (IDIQ) contract for Lethal Unmanned Systems (LUS), which was awarded in August 2024. This delivery order marks the U.S. Army’s first procurement of AV’s next-generation Switchblade product line, underlining a significant step forward in fielding advanced, precision loitering munitions across infantry and maneuver formations. It is the Army’s first Switchblade order containing EFP payload, delivering enhanced lethality against armored threats.

“This delivery order reflects the Army’s confidence in the next evolution of the Switchblade family and its relevance to modern, contested battlefields,” said Brian Young, Senior Vice President of Loitering Munitions at AV. “Switchblade 600 Block 2 and Switchblade 300 Block 20 build on years of combat experience while delivering meaningful upgrades in autonomy, resilience, and lethality tailored to today’s operational demands.”

Switchblade 600 Block 2 is AV’s most advanced long-range loitering munition to date, designed for multi-domain operations and ruggedized for maritime and highly contested environments. Developed in collaboration with United States Special Operations Command (SOCOM), the system features upgraded avionics and advanced Automatic Target Recognition (ATR), enabling faster detection, identification, and engagement of threats. Integrated resilient communications, including Silvus MANET radios, support distributed operations and extended handoff ranges, while improved navigation and mission resilience allow effective employment in GPS-challenged environments. These upgrades provide commanders with increased reach, flexibility, and confidence against armored and high-value targets.

Switchblade 300 Block 20 introduces a new modular payload capability to the combat-proven, backpackable loitering munition. For the first time, the Army has procured the system with an Explosively Formed Penetrator (EFP) payload, delivering enhanced lethality against armored threats while retaining the speed, portability, and ease of use that have made Switchblade 300 a trusted solution at the small-unit level. The Block 20 configuration also includes sensor improvements, enhanced user interfaces, and extended range options, allowing rapid, precision effects beyond line of sight.

Together, the Switchblade 600 Block 2 and Switchblade 300 Block 20 provide the Army with a scalable family of precision loitering munitions—from lightweight, single-operator systems to long-endurance, multi-domain capabilities—designed to operate seamlessly across echelons and mission sets.

“This delivery order further advances the Army’s Lethal Unmanned Systems Directed Requirement and reinforces AV’s role as the leading provider of combat-proven loitering munition systems,” said Young. “As we continue to invest in expanding Switchblade manufacturing capacity and accelerating delivery timelines, we are continuing to meet the growing demand for these products from U.S. and allied forces.”

About AV

AeroVironment, Inc. (“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.

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Source: AeroVironment, Inc.