AeroVironment Wins $13M Defense Contract for Unmanned Surveillance Aircraft

AV said its contract for P550 surveillance aircraft could be worth as much as $42 million.
Dec. 8, 2025
2 min read

AeroVironment announced December 8 it had received a 3-year contract with the U.S.  Department of Defense to sell the Army its P550 uncrewed surveillance aircraft. The Arlington, Virginia-based aerospace and defense company said the contract had an initial base value of $13.2 million, with options for a total contract value of $42 million. The battery-electric P550s will augment the Army’s long-range reconnaissance (LRR) program, the company said in a statement, in addition to a previously-announced shipment of the same aircraft.

In a statement, AV’s VP of Small Uncrewed Aerial Systems Jason Hendrix said the P550’s combination of intelligence-gathering and weapons systems makes the platform suitable for Army use.

“AV’s LRR offering was engineered to meet the Army’s unique needs, resulting in an architecture tailored to match battalion-level battlefield requirements,” said Hendrix said. “AV has a strong track record of providing both [intelligence, surveillance, and reconnaissance] and lethal effect solutions to the U.S. Armed Forces. We are confident that P550 will effectively bridge the current capability gap, providing the Army with critical functionalities in a single, adaptable platform.”

Hendrix added the company’s partnership with Parry Labs on the drone lends it flexibility: the P550 was designed as a modular system that can be reconfigured for different payloads and missions.

“From its inception, P550 was designed with a Modular Open Systems Approach (MOSA),” continued Hendrix. “The ability to swiftly install and exchange payloads, update mission software, and interoperate with other Army elements depending on mission requirements is crucial to operational success and soldier safety. AV’s partnership with Parry Labs integrates their proven mission system components into P550, offering best-in-class solutions that anticipate soldier needs. P550 embodies a true MOSA system, providing maximum flexibility with minimal logistical demands.”

About the Author

Ryan Secard

Ryan Secard joined Endeavor B2B in 2020 as a news editor for IndustryWeek. He currently contributes to IW, American Machinist, Foundry Management & Technology and Plant Services on breaking manufacturing news, new products, plant openings and closures, and labor issues in manufacturing.

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