AeroVironment (AVAV) Stock Wins U.S. Army Prototype Deal for Switchblade 400 Drone

TLDR

• The U.S. Army awarded AeroVironment a prototype agreement for its Switchblade 400 loitering munition under the LASSO program.
• The Switchblade 400 is a medium-range, man-portable, anti-armor drone weighing under 40 pounds, capable of engaging targets up to 65 kilometers away.
• The deal follows a $186 million delivery order in February 2026 and a nearly $1 billion contract awarded in August 2024 for other Switchblade variants.
• The Army is requesting approximately $110 million for LASSO procurement in fiscal 2027, with nearly $1.2 billion planned for FY26–FY31.
• AeroVironment did not disclose the dollar value of the new prototype agreement.

AeroVironment (AVAV) landed a new prototype agreement from the U.S. Army on Monday for its Switchblade 400 loitering munition, adding to a growing string of military contracts for the drone maker. AVAV was down 1.17% at the time of the announcement.

AeroVironment, Inc., AVAV

The deal ties the Switchblade 400 into the Army’s Low Altitude Stalking and Strike Ordnance program, known as LASSO. The program is designed to give mobile brigade combat teams better loitering munition capabilities in contested environments.

The Army has been open about the gap it’s trying to fill. Budget documents state that mobile brigade combat teams lack the organic capability to destroy tanks, armored vehicles, and hardened targets while minimizing collateral damage across varied terrain and conditions. LASSO is meant to close that gap.

The Switchblade 400 is a purpose-built anti-armor weapon. It can destroy moving tanks and armored vehicles at distances of up to 65 kilometers and can be deployed by a single soldier in under five minutes.

The all-up round weighs 39 pounds and is designed to fit common launch tubes. It has a loitering speed of up to 70 miles per hour and a sprint speed of up to 90 miles per hour.

The system runs on AeroVironment’s AV_Halo command-and-control platform. It’s the first loitering munition purpose-built to operate within that ecosystem.

Its EO/IR sensors and aided target recognition allow it to autonomously detect and classify targets day or night. It integrates with tactical networks including ATAK and Nett Warrior.

One feature the Army specifically highlighted: the ability to abort a strike mid-mission. That’s a meaningful distinction from traditional munitions in situations involving civilian presence or dynamic targeting environments.

Growing Army Relationship

This award builds on a substantial existing relationship between AeroVironment and the Army. In August 2024, the Army awarded the company a nearly $1 billion contract for Switchblade 600 and Switchblade 300 variants under a Lethal Unmanned Systems Directed Requirement.

In February 2026, that was followed by a $186 million delivery order for Block 2 variants of those systems. The Switchblade 600 was selected for the first increment of LASSO, and the Army has since been looking to add more platforms to the program.

AeroVironment unveiled the Switchblade 400 last fall. The new prototype agreement will support rapid development, delivery, and testing of the system, according to the company.

The dollar value of the new deal was not disclosed.

Army Budget Signals Long-Term Commitment

The Army’s budget plans give some context to the scale of investment here. The service is requesting roughly $110 million for LASSO procurement in fiscal 2027. Over the FY26–FY31 window, it plans to spend close to $1.2 billion on the program.

Future LASSO increments are expected to focus on additional range, enhanced lethality, and expanded payload options for targets beyond armored vehicles.

AeroVironment is not alone in the LASSO pipeline. Textron Systems announced earlier this year it had also received a prototype agreement for its Damocles platform under the same program, though that deal’s value was also not disclosed.

The Army’s FY27 budget request for LASSO stands at approximately $110 million.

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