AeroVironment Inc. (AVAV) announced that its wholly‑owned subsidiary VideoRay has been awarded a $4.8 million contract by the U.S. Coast Guard to deliver Mission Specialist Defender remotely operated vehicles (ROVs). The award is part of the Coast Guard’s Force Design 2028 modernization initiative, which seeks to integrate advanced unmanned systems into the Service’s technology campaign.
The contract value of $4.8 million is consistent with other recent defense awards and represents a new revenue stream for VideoRay. The Mission Specialist Defender ROVs will enhance the Coast Guard’s rapid under‑sea response capabilities, positioning AeroVironment as a key partner in the U.S. military’s next‑generation maritime operations. The award also expands the company’s underwater robotic capabilities, adding a new product line that supports maritime surveillance and response missions.
This contract builds on AeroVironment’s recent strategic expansion. In May 2025 the company completed the acquisition of BlueHalo, a move that more than doubled its revenue in the following quarter and broadened its portfolio into autonomous maritime systems. The Coast Guard award is the first major U.S. government contract that leverages the BlueHalo technology platform, signaling that the acquisition is delivering tangible business results and opening doors to additional maritime and under‑sea contracts.
VideoRay CEO Chris Gibson said, “The selection of the Mission Specialist Defender reinforces our ability to deliver proven technology to address the most demanding defense and security missions. Customers have come to depend on VideoRay when failure is not an option. As AV’s maritime pillar, we’re proud to contribute to the organization’s all‑domain uncrewed systems strategy to ensure the safety and security of our forces.” AeroVironment CEO Wahid Nawabi added, “AV is operating from a position of strength as evidenced by our record second‑quarter results, all‑time high bookings and long‑term contract wins. We have built a portfolio of integrated capabilities and advanced technologies to meet the market’s accelerating demand.” Coast Guard RAS program executive officer Anthony Antognoli noted, “These unmanned systems provide increased domain awareness, mitigating risk and enhancing mission success as the Coast Guard continues to operate in hazardous environments.”
The contract comes at a time when investors are closely watching AeroVironment’s profitability. In the most recent quarter the company reported revenue of $472.5 million, up 151% year‑over‑year, but GAAP net loss of $17.1 million due to amortization expenses from the BlueHalo acquisition. Adjusted earnings per share missed analyst expectations by $0.35, a 44% shortfall. While the new ROV contract adds a modest $4.8 million to the revenue mix, the company must continue to manage integration costs and maintain margin discipline to convert its high growth into sustainable profitability.
The award strengthens AeroVironment’s partnership with the U.S. Coast Guard and positions the company to pursue additional maritime and under‑sea contracts. It also demonstrates the commercial viability of the BlueHalo platform and reinforces the company’s strategy of expanding into high‑growth defense segments. However, the company’s recent earnings miss highlights the need for disciplined cost management as it scales its new capabilities.
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