Key Highlights
- AeroVironment received a prototype contract from the U.S. Army for the Switchblade 400 loitering munition as part of the LASSO initiative.
- The Switchblade 400 represents a portable, medium-range anti-armor system weighing less than 40 pounds with a strike range extending to 65 kilometers.
- This contract follows a $186 million order issued in February 2026 and comes after a nearly $1 billion agreement secured in August 2024 for alternative Switchblade models.
- Army budget projections allocate approximately $110 million for LASSO acquisition in fiscal year 2027, with plans totaling nearly $1.2 billion from FY26 through FY31.
- Financial terms of the prototype contract remain undisclosed by AeroVironment.
On Monday, AeroVironment (AVAV) secured a fresh prototype contract from the U.S. Army for its Switchblade 400 loitering munition system, continuing the defense manufacturer’s expansion in military drone contracts. At the time of the news release, AVAV shares declined 1.17%.
This agreement integrates the Switchblade 400 into the Army’s Low Altitude Stalking and Strike Ordnance initiative, commonly referred to as LASSO. The initiative aims to enhance mobile brigade combat teams with improved loitering munition systems for use in challenging operational theaters.
Army leadership has been transparent regarding operational shortfalls they seek to address. Planning documents reveal that mobile brigade combat teams currently lack organic resources to neutralize tanks, armored platforms, and reinforced targets while limiting collateral impact across diverse landscapes and weather scenarios. LASSO represents the solution to this capability deficit.
The Switchblade 400 serves as a dedicated anti-armor solution. It possesses the capability to eliminate mobile tanks and armored assets at ranges reaching 65 kilometers and can be operationalized by one soldier within five minutes.
Weighing 39 pounds complete, the system fits standard launch tubes. It maintains a loitering velocity of up to 70 miles per hour with burst capabilities reaching 90 miles per hour.
The platform operates through AeroVironment’s AV_Halo command-and-control infrastructure. It stands as the inaugural loitering munition engineered specifically for that operational framework.
Its electro-optical/infrared detection systems and assisted target identification enable autonomous target discovery and classification regardless of lighting conditions. The system connects with tactical communication networks such as ATAK and Nett Warrior.
A capability the Army particularly emphasized: strike cancellation during active missions. This capability provides critical flexibility compared to conventional ordnance when operating near civilian populations or in fluid targeting scenarios.
Expanding Military Partnership
This contract strengthens an already significant partnership between AeroVironment and Army forces. During August 2024, the Army granted the manufacturer a contract approaching $1 billion for Switchblade 600 and Switchblade 300 configurations under a Lethal Unmanned Systems Directed Requirement.
Subsequently, in February 2026, a $186 million delivery order for Block 2 versions of these platforms followed. The Switchblade 600 received selection for LASSO’s initial increment, with the Army subsequently pursuing additional platform additions to the program.
AeroVironment introduced the Switchblade 400 during last fall. The prototype agreement will facilitate accelerated development, deployment, and evaluation of the platform, per company statements.
Financial details of this new contract were not made public.
Budget Documents Indicate Sustained Investment
Army budget projections provide insight into the magnitude of this investment area. The military branch seeks approximately $110 million for LASSO procurement during fiscal year 2027. Spanning the FY26–FY31 timeframe, planned expenditures approach $1.2 billion for the program.
Subsequent LASSO phases are anticipated to emphasize extended operational range, increased destructive capability, and diversified payload configurations for targets extending beyond armored platforms.
AeroVironment faces competition within the LASSO development pipeline. Textron Systems disclosed earlier this year that it too secured a prototype agreement for its Damocles system under this same program, though financial terms likewise remained confidential.
The Army’s fiscal year 2027 budget proposal for LASSO totals approximately $110 million.
