UPDATE -- Leonardo DRS Selected by AV for U.S. Army’s Enduring-High Energy Laser Production Program

Leonardo DRS wins key integration role for U.S. Army’s first laser weapon production program.

What the company is saying

Leonardo DRS, Inc. (NASDAQ:DRS) is announcing its selection by AeroVironment, Inc. (NASDAQ:AVAV) to provide rugged integration expertise for the U.S. Army’s Enduring-High Energy Laser (E-HEL) production program. The company frames its role as critical to enabling the Army’s first production contract for a high-energy laser weapon system, emphasizing its expertise in power management and environmental control. The announcement highlights the LOCUST X3, a 30-kilowatt, platform-agnostic laser weapon system designed for flexible military integration, including on the Joint Light Tactical Vehicle. Executives John Baylouny (CEO) and Aaron Hankins (VP/GM, Land Systems) are quoted to underscore DRS’s technical experience and the importance of scalable, fieldable directed-energy capabilities for countering unmanned aircraft system (UAS) threats. The company stresses its prior rapid-prototyping partnership with AeroVironment, referencing live-fire evaluations and training for the U.S. government in 2024 and 2025 as evidence of relevant experience. The tone is confident and positions DRS as a trusted defense technology provider, but the announcement omits contract values, quantities, and delivery timelines.

What the data suggests

The announcement confirms that AeroVironment has selected Leonardo DRS as a subcontractor for the U.S. Army’s E-HEL production program, with DRS supplying integration expertise for the LOCUST X3 laser weapon system. The LOCUST X3 is specified as a 30-kilowatt system, designed for use across multiple military platforms and available in palletized configurations. The U.S. Army awarded AeroVironment the E-HEL contract in September 2026, marking the Army’s first production contract for a high-energy laser weapon system. DRS’s prior involvement in rapid-prototyping and live-fire evaluations in 2024 and 2025 demonstrates relevant technical capability, but there is no disclosure of contract value, production quantities, or delivery schedules. All claims regarding the system’s scalability, affordability, and operational impact are forward-looking and not yet realised. The data is technically detailed but financially incomplete, providing no basis for assessing revenue, margins, or near-term financial impact.

Analysis

The announcement is positive in tone, highlighting Leonardo DRS's selection by AeroVironment for a significant U.S. Army laser weapon program. However, the measurable progress is limited: while the subcontract award and prior technical experience are realised facts, most claims about the E-HEL program's impact and DRS's future contributions are forward-looking and aspirational. No contract value, delivery schedule, or profitability metrics are disclosed, making it impossible to assess the financial impact or near-term value creation. The benefits described—such as scalable, affordable, fieldable directed-energy systems—are projected and not yet realised, with no evidence of immediate operational deployment. The program is capital intensive, but the timeline for benefit realisation is long-term and uncertain. The narrative leans on technical ambition and prior prototyping, but lacks concrete evidence of current financial or operational gains.

Risk flags

• ●The absence of disclosed contract values, unit quantities, or delivery schedules introduces significant uncertainty about the financial impact and timing of revenue recognition for Leonardo DRS. Without these figures, investors cannot assess the scale or profitability of the subcontract.
• ●Execution risk remains high, as the E-HEL program involves integrating advanced directed-energy technology into mobile military platforms for the first time at production scale. Technical and operational challenges could delay or limit successful deployment.
• ●Forward-looking statements about scalability, affordability, and operational effectiveness are not yet substantiated by realised results or fielded systems. If technical or cost targets are missed, the program’s value proposition could be undermined.

Bottom line

Leonardo DRS’s selection by AeroVironment for the U.S. Army’s E-HEL production program positions the company as a key integrator for the Army’s first high-energy laser weapon system. The technical scope is clear, with DRS providing integration expertise for the 30-kilowatt LOCUST X3 laser, but the announcement omits all financial specifics, leaving the revenue and margin impact unknown. The program is capital intensive and at an early production stage, with no disclosed delivery or deployment timeline, so near-term financial benefits are unlikely. The narrative leans heavily on prior technical experience and the strategic importance of directed-energy weapons, but most operational and financial benefits remain forward-looking. Investors should view this as a program milestone and a validation of DRS’s technical capability, but the lack of contract value or schedule disclosure means the announcement is not yet actionable for financial modeling. The most important takeaway is that DRS is now formally involved in a high-profile Army laser weapon program, but the scale and timing of value creation remain uncertain.

Announcement summary

(NASDAQ:DRS) Leonardo DRS, Inc. announced that AeroVironment, Inc. (NASDAQ:AVAV) has selected the company to provide rugged integration expertise for the U.S. Army’s Enduring-High Energy Laser (E-HEL) production program. DRS will contribute its expertise in power management and environmental control to enable the mobile high-energy laser system, which is intended to counter unmanned aircraft system (UAS) threats. In September 2026, the U.S. Army awarded AeroVironment the E-HEL program, marking the Army’s first production contract for a high-energy laser weapon system. The E-HEL program aims to provide soldiers with a scalable, affordable directed-energy system to strengthen counter-UAS operations. DRS’ subcontract supports AeroVironment’s production of LOCUST X3 laser weapon systems under the E-HEL program. The LOCUST X3 is a 30-kilowatt, platform-agnostic laser weapon designed for integration across a range of military platforms, including the Army’s Joint Light Tactical Vehicle, and offers palletized configuration options. John Baylouny, president and chief executive officer of Leonardo DRS, stated that the Army’s move to production reflects the growing importance of scalable, fieldable directed-energy capabilities in countering evolving UAS threats. Aaron Hankins, vice president and general manager of Leonardo DRS Land Systems, said the team is applying experience in vehicle integration, power, and thermal management to help AeroVironment deliver a mobile high-energy laser capability for the U.S. Army. The work builds on DRS’ previous directed-energy integration experience, including a rapid-prototyping effort in partnership with AeroVironment and other industry partners to develop a mobile counter-UAS directed-energy capability integrated into an armored vehicle. In that prior effort, DRS provided vehicle-integration, power, thermal-management, and systems-engineering expertise for U.S. government live-fire evaluations and training in 2024 and 2025. DRS is applying this experience to the E-HEL program to help bring scalable, fieldable directed-energy technology to the Army’s counter-UAS mission and broader defense-modernization efforts.

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