In 2021, the Army opened a competition for a permanent drone system, and earlier this year the service selected five companies, including AeroVironment (AVAV), to build prototypes, but on Wednesday night the military said it was awarding contracts to move into the design phase to Griffon Aerospace (GFF), Northrop Grumman (NOC), Sierra Nevada and Textron Systems (SMS) – all competitors except AeroVironment.
Some investors had believed that AeroVironment (AVAV) was a strong contender because the military had awarded $8 million to provide the Jump 20 system as an interim Shadow replacement for a brigade, and the company’s drone is also one of the systems that was sent to Ukraine.
AeroVironment (AVAV) said it delivered a strong close to its 2023 fiscal year ended April 30 despite the setback, which it said did not materially impact its near-term outlook and remains on track for revenue growth. of at least 15% in fiscal year 2024.
Learn more about AeroVironment: