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$400M Pentagon laser deal

AeroVironment gets $400M Army contract for counter-drone laser

8.1% — AeroVironment shares leapt that much in intraday trading, minutes after news broke of a $400 million contract for its laser-based counter-drone system.
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Three soldiers in camouflage uniforms sit in the open doorway of a military helicopter on grassy terrain.
Foto: Symbolbild | wallpapers.com · Symbolbild (thematisch gesucht: S&P 500 US Army to Spend 400 Million on Counter-Drone Lasers) - nicht das Originalfoto der Quelle.
The essentials
  • The U.S. Army is signing its first production deal for a directed-energy counter-drone system.
  • AeroVironment's Locust system uses AI to track and destroy small- to medium-sized drones with a laser.
  • The contract comes amid rising demand for affordable drone defense after conflicts in Ukraine and Iran.

Pentagon signals shift in drone warfare with real-time laser tech

The U.S. Army will spend at least $400 million buying counter-drone lasers from AeroVironment Inc. The deal marks the Pentagon’s first full-scale production contract for a directed-energy system beyond the prototype stage. An unnamed source said the contract will provide the military with dozens of Locust systems, designed to target and destroy small- to medium-sized drones.

The system uses high-energy lasers guided by AI to track and lock onto drones. A promotional video shows drones being disintegrated midair or falling after being hit. Operators watch from screens and use controller-like devices to direct the system.

Stock jumps as demand surges for real-time drone neutralization tools

AeroVironment shares rose as much as 8.1% in early trading, the biggest one-day swing since July 2. The gain came hours after the contract was reported. The company has not officially confirmed the deal but a spokesperson declined to comment. The price surge shows investor confidence in the system’s role in an evolving threat landscape.

Conflicts in Ukraine and Iran have pushed the military to find more cost-effective drone defense than traditional interceptors. Current systems are expensive and hard to replace at scale. Locust is being touted as a solution to this problem, offering rapid, repeatable fire with minimal cost per engagement.

System already stirred controversy during border tests

The Locust system was at the center of an incident earlier this year when a test near the U.S.-Mexico border caused airspace closures. The system accidentally shot down a drone operated by U.S. Customs and Border Protection. The incident highlighted concerns about reliability and control during live testing.

Despite that, the Pentagon continues to push for expanded use of both offensive and defensive drone systems. Defense Secretary Pete Hegseth last year outlined a strategy to achieve “drone dominance,” focusing on faster production and deployment of military drones and their countermeasures.

Based on reporting by Financial Post, compiled by the Tradingbird newsroom. Published 07 Aug 2026, 20:42.
Topics: Commodities · Deals · Energy

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