The contract, which the company called a “landmark” award, tasks AeroVironment with delivering dozens of 30‑kilowatt LOCUST X3 laser weapon systems capable of taking down half‑ton Group 3 military drones, and the firm expects to produce “hundreds” of units over the next few years.
E‑HEL follows a series of research‑and‑development laser contracts awarded to other defense contractors—Lockheed Martin’s High Energy Laser Scaling Initiative, Kratos Defense’s 30‑kilowatt AN/SEQ‑3 system, and Northrop Grumman’s 150‑kilowatt Laser Weapon System Demonstrator—none of which have progressed to full‑scale production.
AeroVironment CEO Wahid Nawabi said the award represents a defining moment for both the company and the future of modern defense, noting that the laser’s operating cost is roughly $1 per shot, far cheaper than the multi‑million‑dollar cost of firing Patriot missiles at drones.
The program builds on AeroVironment’s 2023 acquisition of Blue Halo for $4.1 billion; Blue Halo now forms the company’s Space, Cyber and Directed Energy (SCDE) division, which contributed about $619 million to AeroVironment’s roughly $2 billion revenue last year and will handle E‑HEL production.
Despite the potential revenue boost, the SCDE division reported a $9 million EBITDA loss in the most recent quarter, leaving analysts uncertain whether the laser weapons line will become a high‑margin, profit‑driving segment for the company’s stock.