Industrial Base Alpha

AeroVironment awarded $464.8M for LOCUST X3 laser counter-drone system

•2 min read•Analysis
Mentioned:AVAV AeroVironment$465M · Contract Award

The U.S. Army awarded AeroVironment $464.8 million for LOCUST X3, a palletized high-energy laser system designed to counter unmanned aircraft systems. First delivery is slated for Q4 FY2027 with operational deployment targeted for early 2028.

What's happening

  • AeroVironment received a $464.8 million contract for LOCUST X3 under the Army's Enduring-High Energy Laser (E-HEL) program in September 2026.
  • The modular system will be mounted on the Joint Light Tactical Vehicle and is designed for counter-drone operations across multiple platforms including the Infantry Squad Vehicle.
  • First unit delivery is targeted for Q4 FY2027, with the Army aiming for operational deployment by early 2028, potentially in the December-January timeframe.
  • The contract covers more than 26 laser weapon units total, with earlier LOCUST generations already fielded operationally including at the U.S. southern border.

Why it matters

  • The Army is accelerating fielding of low-cost counter-UAS capabilities to address the growing threat of unmanned aircraft systems used by adversaries.
  • LOCUST X3's modular design enables field-level maintenance and continuous system improvement without full unit replacement, reducing lifecycle costs and sustainment burden.
  • Production ramp-up is underway with long-lead procurements already initiated, demonstrating the Army's commitment to rapid acquisition and soldier-centered modernization.
  • The system demonstrated eight kills during Army Modernization Day testing, validating the directed energy approach for counter-drone operations.

Going deeper

  • The platform is palletized and modular, allowing integration onto multiple vehicles and fielded across different Army units and formations.
  • Brig. Gen. Guy Yelverton, the capability program executive for Defensive Fires, emphasized the goal to push the system through testing and validation rapidly to equip soldiers.
  • The 7th Infantry Division is identified as a potential initial deployment unit, though final deployment locations remain unclear.
  • Col. Charles Kean noted that directed energy weapons are part of a layered defense approach against air threats but are not a standalone solution.

Financial impact

  • The $464.8 million contract will be recognized as revenue over the performance period from Q4 FY2027 through completion of the 26+ unit delivery, timing not fully disclosed.
  • The ceiling value of $464.8 million covers all 26+ laser weapon units, with obligated funds and initial purchase quantities not separately disclosed in available reporting.
  • AeroVironment has already begun long-lead procurements to support production ramp-up, representing capital investment ahead of revenue recognition.

The intrigue

  • Army officials indicated pressure to deploy the first unit operationally rather than retain it for extended testing and training, accelerating real-world operational evaluation.

The fine print

  • The contract covers 26+ units, with the exact final quantity and purchase options not specified in available reporting.
  • First delivery in Q4 FY2027 is on target, but the system must still pass testing, validation and verification phases before early 2028 operational deployment.
Source: militarytimes.com · Oct 13, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.

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