ARLINGTON, Va., April 26, 2026, 15:09 EDT
- AeroVironment’s LOCUST Laser Weapon System is back in the spotlight: a U.S. Navy carrier test demonstrated the system’s ability to spot, follow, and take down several drones.
- The timing is key. U.S. forces have been ramping up their reliance on layered counter-drone defenses, with inexpensive drones putting added pressure on older air defense systems.
- AVAV shares changed hands at $196.28, off roughly 2.8%. Investors are left factoring in the laser test alongside the latest drop and those ongoing integration costs.
AeroVironment’s LOCUST Laser Weapon System is back in the spotlight after reports over the weekend highlighted a U.S. Navy test on the USS George H.W. Bush, where the laser took out several drones straight off the carrier’s deck. These directed energy weapons rely on focused energy—laser beams, not conventional missiles or gunfire.
Militaries are scrambling for less expensive ways to counter small drones, hoping to avoid burning through pricey interceptors. Just last week, Reuters said the U.S. military brought in Ukrainian counter-drone systems to Prince Sultan Air Base in Saudi Arabia after recent attacks. “Longstanding gaps” have persisted in U.S. air and missile defenses, according to Hudson Institute’s Timothy Walton. Adam Scher, with the Pentagon’s counter-drone group, added that there’s no “silver bullet” solution for every drone threat. Reuters
AeroVironment faces a pivotal moment, right where its post-BlueHalo ambitions land. The company agreed to acquire BlueHalo in an all-stock deal valued at about $4.1 billion, according to Reuters—a move aimed at pushing deeper into counter-uncrewed aircraft systems, cyber, and space tech. LSEG data shows AeroVironment already works in autonomous systems, precision strike, counter-UAS, directed energy, and cyber operations.
A Navy photo taken in October 2025 captured a containerized LOCUST system sitting on the carrier’s flight deck. According to DVIDS, the Pentagon’s visual-information outlet, the system “detected, tracked, engaged, and neutralized multiple unmanned aerial vehicles”—not just a static demo, by that description. DVIDS
AeroVironment reported that the demonstration was conducted together with the U.S. Navy and the Army’s Rapid Capabilities and Critical Technologies Office. John Garrity, vice president of directed energy systems at AeroVironment, described LOCUST as a “game-changer” for both the Navy and national security, emphasizing it can be deployed on a ship fast—no expensive modifications required. AeroVironment, Inc.
The carrier angle matters here. Palletized systems are designed for quick loading and unloading, and according to AeroVironment, LOCUST can either operate directly on ship power or recharge from it—an advantage, especially on big ships where electrical supply isn’t an issue like it is on smaller warships.
Investors didn’t see it as a simple win. AeroVironment shares ended late Friday at $196.28, off about 2.8%. The company’s market cap stands close to $9.76 billion, per market data. With U.S. markets closed Sunday, that’s the most recent trading update.
The numbers tell the story behind the tech surge. AeroVironment’s fiscal third-quarter revenue jumped to $408.0 million—a 143% gain from the prior year—and the company’s funded backlog hit $1.1 billion. But red ink followed: a $156.6 million net loss, after accounting for a $151.3 million goodwill impairment related to its Space reporting unit and a stop-work order on the Space Force SCAR project.
The field isn’t short on rivals. Lockheed Martin touts its HELIOS shipboard laser, a 60-plus kilowatt high-energy weapon already delivered to the U.S. Navy and slotted into existing ships as part of a layered defense approach. That leaves AeroVironment pushing a more modular, roll-on solution into an environment where integration, output, and the price tag for each engagement are all under the microscope.
Lasers aren’t without drawbacks. Fast Company’s Sunday analysis flagged issues on the water—think water vapor, salt in the air, temperature swings—all of which can disrupt the beam. There’s also the practical challenge: lasers need time to lock onto a target, and using an invisible beam around busy carrier decks isn’t exactly simple. AeroVironment, for its part, has cautioned its forecasts remain at the mercy of government funding, contract schedules, rivals, and how well it manages both acquisitions and tech.
The focus now shifts to whether AeroVironment can translate its tech into real money. The company is targeting fiscal 2026 revenue of $1.85 billion to $1.95 billion, with adjusted EBITDA in the $265 million to $285 million range. But for investors, what matters is seeing LOCUST and the rest of its counter-drone lineup actually break out of demos and land sizable, funded production deals.
