AeroVironment, Inc. (“AV”) (NASDAQ: AVAV), today announced a landmark $405 million international direct commercial sales order for its LOCUST® X3 high-energy laser weapon systems, expanding critical counter-unmanned aircraft systems (C-UAS) capabilities in the Middle East.

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The award comes amid escalating regional security threats, where the proliferation of low-cost, increasingly sophisticated drones has exposed the urgent need for persistent, affordable air defense. Recent attacks and evolving threat patterns across the Middle East underscore the importance of defeating Group 1 to 3 unmanned aircraft systems before they threaten military installations, critical infrastructure, and civilian populations.

Examples include Shahed-series one-way attack drones, which have been used in attacks against energy facilities, airports, military sites, and other critical infrastructure across the region. These systems can be launched in large numbers, complicating detection and interception while imposing significant costs on conventional air-defense systems.

“Our customers need proven defenses they can field rapidly and sustain over time,” said Wahid Nawabi, chairman, president and chief executive officer of AV. “This landmark award reflects growing recognition that directed energy is essential to modern layered air defense. LOCUST X3 changes the economics of defeating drones while preserving traditional interceptors for higher-end threats.”

LOCUST X3 provides a scalable, precision high-energy laser capability designed to counter Group 1–3 UAS threats. Integrated with radar, command-and-control and complementary kinetic systems, LOCUST strengthens layered defense architectures by providing a low-cost-per-engagement option against persistent and high-volume drone threats.

Unlike conventional missile interceptors that can cost hundreds of thousands or millions of dollars per engagement, directed energy offers a fundamentally different cost equation, delivering precision effects at a fraction of the cost per shot. LOCUST X3 combines rapid engagement, a deep magazine limited primarily by available power and thermal management, and the ability to address successive threats without traditional ammunition resupply. Compared with kinetic-only defenses, this reduces logistical demands and preserves expensive interceptors for higher-end threats. Its operational experience and integrated sensing and tracking capabilities position LOCUST X3 as a compelling, scalable solution for countering persistent drone threats while complementing existing air-defense systems.

To ensure long-term mission readiness, AV intends to establish an in-country maintenance and sustainment depot, providing regional repair, technical support, training, and lifecycle services. This investment will strengthen local partnerships, accelerate maintenance response, and ensure deployed systems remain mission-ready as threats evolve.

The award reinforces AV’s commitment to advancing directed energy from operational deployment to scalable regional defense, extending the role of laser weapons within integrated, layered counter-UAS architectures.

About AV

AeroVironment (“AV”) (NASDAQ: AVAV) is a defense technology leader delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, loitering munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities—built to meet the mission needs of today’s warfighter and tomorrow’s conflicts. With a national manufacturing footprint and a deep innovation pipeline, AV delivers proven systems and future-defining capabilities at speed, scale, and operational relevance. For more information, visit www.avinc.com.

Safe Harbor Statement

Certain statements in this press release may constitute “forward‑looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties, which could cause actual results to differ materially. Factors that may cause such differences include, but are not limited to, our ability to perform under existing contracts and obtain new ones; regulatory and political changes; supply chain stability and availability of components; receipt of export approvals; challenges related to international expansion; competitor activities; market growth; product development challenges; and general economic conditions. For a more detailed discussion of these risks, please refer to AeroVironment’s filings with the Securities and Exchange Commission. We undertake no obligation to update forward‑looking statements as a result of new information or future events.

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