ARLINGTON, Va., April 26, 2026, 15:09 EDT
- AeroVironment’s LOCUST Laser Weapon System grabbed attention again after a U.S. Navy carrier put it through a trial — the system tracked, locked onto, and shot down multiple drones in the test.
- Timing matters here. U.S. forces are leaning harder on layered counter-drone defenses, as cheap drones keep piling stress on legacy air defense systems.
- AVAV slipped to $196.28, down about 2.8%. Investors now have the laser test to weigh, stacked on top of recent declines and persistent integration expenses.
AeroVironment’s LOCUST Laser Weapon System drew renewed attention this weekend, following news of a U.S. Navy demonstration aboard the USS George H.W. Bush. The laser system reportedly knocked out multiple drones directly from the carrier’s deck. Unlike traditional weapons, these systems use tightly focused energy—laser beams rather than missiles or bullets.
Militaries are scrambling to find cheaper ways to stop small drones, looking to save costly interceptors for bigger threats. Reuters reported just last week that the U.S. military flew in Ukrainian counter-drone tech to Prince Sultan Air Base in Saudi Arabia following recent attacks. Hudson Institute’s Timothy Walton said “longstanding gaps” still dog U.S. air and missile defenses. And Adam Scher, who works with the Pentagon’s counter-drone office, pointed out there’s still no “silver bullet” out there for drone threats. Reuters
AeroVironment is at a crossroads with its push beyond BlueHalo. The company has struck an all-stock agreement to buy BlueHalo—valued at roughly $4.1 billion, Reuters reported—setting its sights on expanding in counter-uncrewed aircraft, cyber capabilities, and space technology. LSEG data highlights AeroVironment’s current footprint: autonomous systems, precision strike, counter-UAS, directed energy, and cyber operations.
In an image snapped by the Navy back in October 2025, a containerized LOCUST system is visible parked on the carrier’s flight deck. DVIDS, the Pentagon’s own outlet for visual information, reported that the system “detected, tracked, engaged, and neutralized multiple unmanned aerial vehicles”—suggesting this wasn’t just a display unit. DVIDS
AeroVironment said it ran the demonstration with the U.S. Navy and the Army’s Rapid Capabilities and Critical Technologies Office. John Garrity, who heads directed energy systems at AeroVironment, called LOCUST a “game-changer” for Navy operations and national security, stressing its rapid deployment on ships without pricey upgrades. AeroVironment, Inc.
Carrier angle plays a role. Palletized systems are built for speed—fast on, fast off. AeroVironment says LOCUST has flexibility: it’ll run straight off the ship’s power or plug in to recharge, which is a plus, particularly on larger vessels that can handle the extra draw. For smaller warships, that electrical limitation remains a headache.
Not quite a clear victory for investors: AeroVironment shares slipped to $196.28 by late Friday, down roughly 2.8%. Market data puts the company’s valuation near $9.76 billion. That’s the latest, with U.S. markets shut Sunday.
The numbers stack up fast for AeroVironment. Fiscal Q3 revenue soared to $408.0 million, up 143% year over year, with the funded backlog swelling to $1.1 billion. Losses still landed hard: net loss totaled $156.6 million, dragged down by a $151.3 million goodwill impairment tied to the Space unit and a stop-work order on the Space Force SCAR project.
This is a crowded contest. Lockheed Martin is pitching its HELIOS system—a high-energy laser packing over 60 kilowatts—already in the Navy’s hands and fitted onto ships for layered defense. That puts AeroVironment in the position of promoting a more modular, roll-on package, while commanders scrutinize integration, firepower, and the cost of every shot.
Lasers come with their own set of headaches. As Fast Company pointed out Sunday, everything from water vapor and salty air to shifting temperatures can throw a wrench in the beam’s performance. There’s another hurdle: lasers need time to actually lock onto targets, and firing an invisible beam in the middle of a hectic carrier deck isn’t straightforward. AeroVironment itself has noted its outlook depends heavily on the pace of government funding, the timing of contracts, tough competition, and its ability to juggle acquisitions alongside tech integration.
The real test for AeroVironment comes down to whether it can convert its technology into meaningful revenue. Management aims for fiscal 2026 revenue between $1.85 billion and $1.95 billion, and is projecting adjusted EBITDA of $265 million to $285 million. Still, investors are watching for proof that LOCUST and its other counter-drone systems can escape the prototype stage and secure large, fully funded production contracts.
