AeroVironment (NASDAQ:AVAV) has been awarded a significant 5-year contract by the Army Contracting Command-Aberdeen Proving Ground.
The contract, valued at up to $990 million, follows an Indefinite Delivery, Indefinite Quantity (IDIQ) format, positioning AV to provide the U.S. Army with its advanced Switchblade® loitering munition systems under the Army's Directed Requirement (DR) for Lethal Unmanned Systems (LUS).
The LUS Directed Requirement marks the Army's inaugural initiative to equip infantry battalions with lethal, man-portable loitering munition systems.
The Switchblade® systems are expected to significantly enhance the combat capabilities of soldiers, offering precision flight control and increased lethality against heavily fortified targets, including armored vehicles and tanks.
Additionally, these systems possess the capability to track and engage moving targets beyond the line of sight.
Deliveries of the Switchblade® systems are anticipated to commence within the coming months, building on the ongoing fulfillment of a previously awarded contract from December 2023.
The Switchblade® represents a next-generation solution in extended-range loitering munition systems, equipped with high-precision optics and enhanced loitering endurance, ready to support multi-mission and multi-domain operations.
Following the announcement, AeroVironment's share price was up 8.50%.