AeroVironment wins a $500M homeland counter-drone contract, pushing Switchblade's maker into base defense
The loitering-munition maker's entry into JIATF-401's Domestic Shield program turns a record quarter into a foothold in homeland counter-drone defense.
The loitering-munition maker's entry into JIATF-401's Domestic Shield program turns a record quarter into a foothold in homeland counter-drone defense.
AeroVironment has won a three-year, $500 million indefinite-delivery contract to supply counter-drone systems for Joint Interagency Task Force 401's Domestic Shield program, the company said Monday. The Department of War listed the sole-source award on July 1 under Army Contracting Command, and AeroVironment makes Switchblade loitering munitions and the LOCUST laser, DefenseScoop reported.
A first order is already booked against the ceiling. JIATF-401 selected AeroVironment's Titan MS multi-sensor system for an $80.5 million award to strengthen U.S. Air Force base defense against small drones, the firm said. Titan fuses sensor feeds with AI to detect, track and defeat both radio-controlled and autonomous drones. AeroVironment delivered 118 Titan 4 and 400 Titan-SV units last quarter and has the family fielded in 17 countries, per its release.
The wider program is already crowded. JIATF-401 has committed more than $600 million to homeland counter-UAS since the spring, after Domestic Shield awards to DroneShield, CACI and Perennial Autonomy. What is new is the scale of AeroVironment's entry, and where the company is coming from: a prime known for one-way attack drones now selling the tools to shoot drones down.
The timing tracks a hot quarter. AeroVironment reported record fiscal fourth-quarter revenue of about $642 million and a funded backlog of $1.2 billion, according to CNBC. Its shares rose nearly 19% after the earnings call, DefenseScoop noted, and about 37% over the week, per Investing.com. Wedbush opened coverage at Outperform with a $250 target. The stock slipped Monday as the formal awards landed.
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Subscribe Free →AeroVironment holds an investor day on July 8, and says it will disclose more as task and delivery orders are executed against the $500 million ceiling. Each order booked against that ceiling now measures how far a loitering-munition prime can carry the homeland counter-drone build-out into revenue.
Frequently Asked Questions
What did AeroVironment win?
AeroVironment said it was awarded a three-year, $500 million indefinite-delivery, indefinite-quantity (IDIQ) contract to supply counter-drone systems for Joint Interagency Task Force 401's Domestic Shield program. The Department of War listed the sole-source award on July 1 under Army Contracting Command, according to DefenseScoop.
What is the separate $80.5 million Titan award?
The company said JIATF-401 selected its Titan MS (Multi-Sensor) counter-drone system for an $80.5 million order, executed against the $500 million IDIQ ceiling, to strengthen U.S. Air Force base defense against small unmanned aircraft.
What is the Domestic Shield program?
Domestic Shield is a JIATF-401 initiative to strengthen homeland counter-drone defense of installations and critical infrastructure. AeroVironment said the Department of War has committed more than $600 million through the task force since the spring to expand counter-UAS capabilities.
Why does this award stand out for AeroVironment?
AeroVironment is best known for the Switchblade loitering munition and the LOCUST laser, per DefenseScoop. The Domestic Shield awards move a maker of strike drones deeper into the business of detecting and defeating them for homeland base defense.
How did the company's finances look going into the award?
AeroVironment reported record fiscal fourth-quarter revenue of about $642 million and a funded backlog of $1.2 billion, according to CNBC. Investing.com reported its shares had risen roughly 37% over the week, with Wedbush opening coverage at Outperform and a $250 target.
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Marcus Schuler
Marcus Schuler edits BattlePolicy, a daily defense-technology brief connecting the companies and capabilities behind modern war to the contest among Europe, the US, Russia, and China.