AeroVironment Secures $990M U.S. Army Contract for Switchblade Munitions

Aug 28, 2024, 01:10 PM

AeroVironment, a defense contractor, has been awarded a significant contract by the U.S. Army valued at $990 million. The contract involves providing the Army with Switchblade loitering munitions, which are designed to offer an organic, stand-off capability to dismounted infantry formations. These munitions are capable of destroying tanks, light armored vehicles, hardened targets, and personnel. The contract is structured as a five-year Indefinite Delivery Indefinite Quantity (IDIQ) agreement, with deliveries of the Switchblade systems expected to commence soon. This development has led to a surge in AeroVironment's stock price, as analysts and investors react positively to the news.