Vuzix and Collins Aerospace Announce Strategic Collaboration to Scale Augmented Reality Defense Solutions

Rhea-AI Summary

Vuzix (NASDAQ: VUZI) announced continuation of a multi-year development collaboration with Collins Aerospace to scale waveguide-based augmented reality display systems for multiple U.S. Department of Defense programs.

Key points: production approval and deliveries have been achieved for advanced waveguide AR systems, a waveguide-based display engine design is complete, near-term low-rate initial production (LRIP) is enabled, and end-customer approved hardware deliveries are expected to begin in Q1 2026 with projected full-rate production beginning in 2026. The agreement leverages Vuzix' custom waveguide manufacturing to support U.S.-based defense manufacturing.

Positive

• Production approval received for waveguide AR systems
• Design completed for a waveguide-based display engine
• LRIP enabled with delivery scope for multiple DoD programs
• End-customer approved hardware deliveries expected Q1 2026

Negative

• Full-rate production timing remains a projection for 2026, not a completed milestone
• Joint process validation still underway after several years of development

Key Figures

Full-rate production target 2026 Projected start of full-rate production for defense AR systems

Initial hardware deliveries Q1 2026 End customer-approved final hardware deliveries to government customers

Market Reality Check

$3.07 Last Close

Volume Volume 3,427,580 is 1.91x the 20-day average of 1,796,120, indicating elevated interest ahead of this news. high

Technical Shares trade above the 200-day MA, at $3.15 vs long-term trend level of $2.56.

Peers on Argus 1 Down

Peer moves were mixed: WTO -5.13%, UEIC +0.96%, KOSS +0.67%, GPRO +2.58%, ZEPP +6.35%. VUZI’s +9.38% pre-news gain appears more stock-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 28	Commercial order win	Positive	+13.0%	Follow-on smart glasses orders nearing $1M from major online retailer.
Nov 25	Industry alliance	Positive	+2.2%	Joined AR Alliance to collaborate on AR hardware and standards.
Nov 13	Quarterly earnings	Negative	-9.3%	Q3 2025 revenue decline and net loss despite strategic updates.
Nov 12	Conference participation	Neutral	+3.0%	Announcement of attendance at Craig-Hallum Alpha Select conference.
Oct 30	Earnings call notice	Neutral	-8.9%	Scheduling of Q3 2025 results conference call and webcast.

Pattern Detected

Commercial wins and strategic partnerships have often coincided with positive price reactions, while earnings-related updates have aligned with downside moves.

Recent Company History

Over the last few months, Vuzix has combined strategic updates with capital-raising. A Q3 2025 earnings report showed revenues of $1.16M and a net loss of $7.35M, which was followed by a negative price reaction. In contrast, news of AI smart glasses orders nearing $1M and AR Alliance membership both saw positive moves. Today’s Collins Aerospace collaboration fits the pattern of Vuzix leveraging partnerships to scale AR and waveguide deployments across enterprise and defense.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-10-08

An effective S-3 shelf registration filed on 2025-10-08 allows a selling stockholder to resell registered shares using various transaction methods, potentially increasing available trading supply when utilized.

Market Pulse Summary

This announcement extends Vuzix’s role in defense-focused AR by moving a long-running Collins Aerospace collaboration toward low-rate production and government deployments beginning in 2026. It complements earlier partnerships and commercial wins, suggesting a strategy centered on scaling waveguide-based systems across enterprise and defense. Investors may track execution on the Q1 2026 delivery timetable and monitor how recent capital-raising and registered-share resale capacity interact with future contract milestones.

Key Terms

augmented reality technical

"scale Augmented Reality defense solutions"

Augmented reality is technology that layers computer-generated images, information or sounds onto your view of the real world through devices like phones, tablets or smart glasses — like seeing navigation arrows or product labels projected onto what you’re looking at. It matters to investors because it creates new ways to sell hardware, software, services and ads, can change customer engagement and recurring revenue models, and carries adoption and privacy risks that affect company value.

waveguides technical

"advanced waveguides, and augmented reality (AR) technologies"

Waveguides are physical pathways, often made of metal or glass, that direct and carry signals like light or radio waves from one point to another. They are important because they help ensure these signals travel efficiently without losing strength, which is crucial for things like internet connections, satellite communications, and radar systems.

low-rate initial production (LRIP) technical

"enables near-term low-rate initial production (LRIP) and strategically positions"

A low-rate initial production (LRIP) phase is a limited, early manufacturing run used to build a small number of products after testing but before full-scale production. For investors it signals a program moving from development toward commercial output—like a baker making a small batch to confirm the recipe before opening for regular sales—so LRIP can indicate near-term revenue potential, remaining technical or cost risks, and timing for larger contract value.

AI-generated analysis. Not financial advice.

ROCHESTER, N.Y., Dec. 19, 2025 /PRNewswire/ -- Vuzix® Corporation (NASDAQ: VUZI), ("Vuzix" or, the "Company"), a leading supplier of AI-powered smart glasses, advanced waveguides, and augmented reality (AR) technologies for defense and enterprise applications, today announced the continuation of its multi-year development collaboration with Collins Aerospace, an RTX  business. The relationship has resulted in the production approval and delivery of advanced waveguide-based AR display systems for deployment across multiple U.S. Department of Defense programs.

Under this development program, Vuzix has already completed the design and development of a waveguide-based display engine for a Collins Aerospace next-generation wearable display system, initially aimed at supporting dismounted soldier operations and drone control. This collaboration enables near-term low-rate initial production (LRIP) and strategically positions both companies to meet projected full-rate production needs beginning in 2026, leveraging Vuzix' custom waveguide manufacturing capabilities. The procurement marks a significant step in Vuzix supporting U.S.-based defense manufacturing and establishing the Company as a key enabler and component of Collins Aerospace's advanced vision systems. Joint process validation is being completed after several years of development, with end customer-approved final hardware deliveries to government customers expected to begin in the first quarter of 2026.

"This collaboration with Collins Aerospace marks another major inflection point in re-establishing Vuzix' defense manufacturing roadmap," said Paul Travers, President and CEO of Vuzix. "By working with trusted integrators in the aerospace and defense industry, we are using our expertise and waveguide manufacturing capacity to deliver ruggedized, high-performance waveguide systems at scale, an essential step as defense demand for next generation products transitions from R&D to deployment."

About Vuzix Corporation

Vuzix is a leading designer, manufacturer and marketer of AI-powered smart glasses, waveguides and Augmented Reality (AR) technologies, components and products for the enterprise, medical, defense and consumer markets. The Company's products include head-mounted smart personal display and wearable computing devices that offer users a portable high-quality viewing experience, provide solutions for mobility, wearable displays and augmented reality, as well OEM waveguide optical components and display engines. Vuzix holds more than 450 patents and patents pending and numerous IP licenses in the fields of optics, head-mounted displays, and the augmented reality wearables field. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2024 and several wireless technology innovation awards among others. Founded in 1997, Vuzix is a public company (NASDAQ: VUZI) with offices in: Rochester, NY; and Kyoto and Okayama, Japan.  For more information, visit the Vuzix website, X and Facebook pages.

Forward-Looking Statements Disclaimer

Certain statements contained in this news release are "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward looking statements contained in this release relate to Vuzix' procurement and development partnership with Collins Aerospace, possibility of future orders, the potential and timing thereof to move into volume procurement programs, the overall success of these programs and among other things the Company's leadership in the AI Smart Glasses and AR display industry. They are generally identified by words such as "believes," "may," "expects," "anticipates," "should" and similar expressions. Readers should not place undue reliance on such forward-looking statements, which are based upon the Company's beliefs and assumptions as of the date of this release. The Company's actual results could differ materially due to risk factors and other items described in more detail in the "Risk Factors" section of the Company's Annual Reports and MD&A filed with the United States Securities and Exchange Commission and applicable Canadian securities regulators (copies of which may be obtained at www.sedar.com or www.sec.gov). Subsequent events and developments may cause these forward-looking statements to change. The Company specifically disclaims any obligation or intention to update or revise these forward-looking statements as a result of changed events or circumstances that occur after the date of this release, except as required by applicable law.

Vuzix Media and Investor Relations Contact:

Ed McGregor, Director of Investor Relations,
Vuzix Corporation
ed_mcgregor@vuzix.com  
Tel: (585) 359-5985

Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY 14586 USA,
Investor Information – IR@vuzix.com  www.vuzix.com

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SOURCE Vuzix Corporation

FAQ

What did Vuzix (VUZI) announce on December 19, 2025 about Collins Aerospace?

Vuzix announced continuation of a multi-year collaboration with Collins Aerospace leading to production approval and delivery of waveguide AR display systems for multiple U.S. DoD programs.

When will Vuzix start deliveries of Collins Aerospace AR hardware to government customers?

The company expects end-customer approved final hardware deliveries to begin in Q1 2026.

Does the Vuzix collaboration with Collins Aerospace include production scaling for 2026?

Yes; the collaboration enables near-term LRIP and positions both companies to meet projected full-rate production beginning in 2026.

What product did Vuzix complete under the Collins Aerospace program?

Vuzix completed the design and development of a waveguide-based display engine for a next-generation wearable display system.

How does the collaboration affect Vuzix manufacturing and U.S. defense support?

The procurement leverages Vuzix' custom waveguide manufacturing and is described as supporting U.S.-based defense manufacturing for Collins Aerospace systems.