AeroVironment, Inc. announced that the U.S. Navy has selected the company to provide Contractor‑Owned, Contractor‑Operated (COCO) intelligence, surveillance and reconnaissance (ISR) services using its JUMP 20‑X Group 3 vertical‑take‑off and landing (VTOL) unmanned aircraft system. The JUMP 20‑X delivers more than 13 hours of flight time, a 115‑mile range, and a 30‑pound payload capacity, and can be configured with over 70 different sensor payloads to meet a wide range of mission requirements.
The Navy’s decision is part of a broader effort to modernize ISR capabilities across its fleet. While the contract value and duration have not been disclosed, the Navy has issued Basic Ordering Agreements (BOAs) that allow AeroVironment, Boeing’s Insitu, Shield AI, and Textron to compete for delivery orders. The JUMP 20‑X was launched at the International Defence Exhibition & Conference (IDEX) in February 2025 and is designed for shipboard operations with a heavy‑fuel engine that can run on multiple fuel types.
AeroVironment’s revenue guidance for fiscal year 2026 has been raised to $1.85 billion–$1.95 billion, reflecting confidence in continued demand for its autonomous systems. The company’s FY 2025 revenue of $820.6 million grew 14% year‑over‑year, and the FY 2025 guidance of $1.85 billion–$1.95 billion follows a $16 million contract awarded in December 2023 for video analytics and computer vision research. The company has also faced margin pressure from a goodwill impairment charge in Q3 FY 2026, but the new contract is expected to support long‑term revenue growth.
Shane Hastings, Vice President of Medium Uncrewed Systems, said, “We have the people and product to deliver a superior capability across the fleet and are committed to supporting our customers with a flexible, scalable, full‑lifecycle ISR solution–any mission, any domain.” He added, “This is a win for AV and a win for the US Navy. Our technology is deployed, proven, and mature. Our team is ready to deliver. We are reshaping our nation's ISR capabilities.”
AeroVironment has a history of ISR support for U.S. Naval Forces Southern Command, the U.S. Marine Corps 22nd Marine Expeditionary Unit, and the Korean Navy, and it recently secured a $16 million contract in December 2023 to advance video analytics for multi‑domain robotics. The Navy’s BOAs demonstrate a strategy of leveraging multiple providers to meet diverse ISR needs across land and sea platforms.
Market reaction to the announcement was muted, with investors focusing on valuation concerns and the company’s recent margin pressures. The contract win, however, is viewed as a positive development for AeroVironment’s long‑term growth trajectory in the autonomous systems market.
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