AeroVironment, Inc. completed the delivery of two JLTV‑mounted LOCUST laser weapon systems to the U.S. Army’s Rapid Capabilities and Critical Technologies Office on December 18, 2025. The 20 kW‑class directed‑energy platforms were installed on Oshkosh Joint Light Tactical Vehicles as part of the second increment of the Army’s Multi‑Purpose High Energy Laser (AMP‑HEL) prototyping effort, marking the first time the company’s laser systems have been fielded on a mobile platform in a real‑world environment.
The LOCUST delivery expands the Army’s counter‑unmanned aircraft system (C‑UAS) toolbox and demonstrates the operational readiness of AeroVironment’s technology. By integrating the laser onto JLTVs, the company has proven that its systems can survive the rigors of a tactical environment while delivering precise, cost‑effective firepower. The milestone also validates the company’s SCDE (Space, Cyber, and Directed Energy) strategy, positioning it to pursue additional high‑energy laser opportunities across the Department of Defense.
AeroVironment’s Q2 FY2026 earnings, released on December 9, 2025, showed record revenue of $472.5 million, a 151% year‑over‑year increase largely driven by the BlueHalo acquisition. However, the company posted a net loss of $17.1 million, and non‑GAAP adjusted EBITDA fell to $45.0 million. The SCDE segment generated $170.9 million in revenue, up from $110.5 million in Q2 FY2025, reflecting strong demand for directed‑energy solutions. The company’s guidance for FY2026 projects revenue between $1.95 billion and $2.0 billion and a net loss of $30 million to $38 million, slightly below consensus EPS estimates. The guidance signals confidence in continued demand for the company’s core capabilities while acknowledging ongoing integration costs and amortization from the BlueHalo acquisition.
Management emphasized the significance of the LOCUST deployment. President of Space, Cyber & Directed Energy Mary Clum said, “AV continues to deliver proven, efficient, modular laser weapon systems that perform and protect in real‑world threat environments. Integrated as part of these AMP‑HEL systems, LOCUST is a cost‑effective, rugged, precise, and scalable solution that is addressing the ever‑evolving UAS threats our warfighters are facing on frontlines today.” CEO Wahid Nawabi noted that the company’s record bookings and demand for autonomous systems are offset by operational inefficiencies from a new ERP rollout and government shutdown disruptions, which have pressured margins.
The market reacted to the broader earnings release with a focus on margin compression and EPS miss. Investors were concerned that the company’s net loss and 20.9% gross margin—down from 43% in the prior year—reflected cost inflation and integration expenses. Despite the strong revenue growth, the EPS miss of 44–48% and the guidance below consensus underscored the company’s short‑term profitability challenges. Analysts highlighted the company’s continued investment in directed‑energy technology as a long‑term tailwind, but cautioned that margin pressures could persist until the BlueHalo integration stabilizes.
Looking forward, AeroVironment’s delivery of LOCUST to the Army positions it to capture a growing market for mobile directed‑energy weapons. The company’s guidance indicates a focus on scaling manufacturing and managing integration costs, while the SCDE segment’s revenue growth suggests that demand for laser systems will continue to rise. The milestone also strengthens the company’s competitive positioning against other defense contractors developing directed‑energy solutions, reinforcing its strategy to become a prime contractor in high‑technology defense programs.
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