The Pentagon is serious about taking down drones, and AeroVironment (AVAV) just got a big check to help. Shares climbed 3.19% in Wednesday's after-hours session after the company announced a $500 million firm-fixed-price contract with the U.S. Department of Defense for counter-unmanned aerial systems (C-UAS) and counter-small-UAS capabilities.
The contract is structured so that work locations and funding will be set with each individual order. It has an estimated completion date of June 29, 2029, giving AeroVironment a steady pipeline of work for the next few years. The award comes as low-cost drone threats become more common, pushing the Pentagon to prioritize counter-drone defense.
At the time of publication, AeroVironment shares were trading at $177.94 in after-hours, according to market data.
