AeroVironment Awarded $500M IDIQ Contract to Support JIATF-401 Domestic Shield Counter-Drone Program

Arlington, Virginia, July 6, 2026 — AeroVironment, Inc. ("AV", NASDAQ: AVAV), a global leader in defense technology, today announced it has been awarded a sole-source, three-year Indefinite Delivery Indefinite Quantity (IDIQ) contract valued at up to $500 million to support the Joint Interagency Task Force 401 (JIATF-401) Domestic Shield program.

Contract Details

The sole-source contract authorizes AV to provide the Department of War (DoW) with a broad range of Counter-Unmanned Aircraft Systems (C-UAS) and Counter-Small Unmanned Aircraft Systems (C-sUAS) capabilities in support of force protection, installation defense, and counter-drone operations under the Domestic Shield program. The DoW formally announced the contract award on July 1.

Executive Statement

AV Chairman, President, and CEO Wahid Nawabi commented: "At its core, the Domestic Shield program is about protecting where Americans live and work, and safeguarding the critical infrastructure that underpins our economy and national security. This award reflects the deep trust placed in every member of the AV team and in our technology, and it underscores the shared responsibility we carry — not only to stay ahead of threats on overseas battlefields, but to continuously address the rapidly evolving drone threat over our own communities."

About the Domestic Shield Program

The Domestic Shield program is a key JIATF-401 initiative designed to establish a more proactive and scalable domestic counter-drone defense posture. Key measures include:

• Expanded defensive coverage: Extending the defensive perimeter
• Streamlined threat identification: Accelerating threat adjudication processes
• Enhanced cross-agency data sharing: Improving coordination across organizations
• Integration of trained contractor support
• Delegated protection authority: More effectively defending high-risk facilities and critical assets

In April, the DoW announced that JIATF-401 had committed more than $600 million at a record pace to bolster C-UAS capabilities in support of Operation Epic Fury and homeland defense missions.

JIATF-401 Commander U.S. Army Brigadier General Matt Ross stated: "The only metric JIATF-401 measures itself by is the speed at which we deliver counter-drone capability to warfighters at home and abroad. By investing in the most advanced technology available, we are adding another layer to our multi-tiered defense architecture, enabling us to respond rapidly and effectively to any unlawful drone threat."

AV's Technology Architecture

AV delivers an integrated, multi-layered counter-drone architecture capable of persistent detect, track, identify, and defeat operations across the full spectrum of operational environments. Central to this architecture is AV_Halo — a modular, mission-ready, AI-powered software toolkit that serves as the integration hub for sensors, platforms, and operators, while enabling seamless interoperability with third-party technologies, command-and-control systems, and emergency response networks.

AV's counter-drone portfolio spans military installations, critical infrastructure, and contested environments, providing the ability to detect, track, identify, and defeat drone threats. With manufacturing facilities across the United States and a robust innovation pipeline, AV is capable of delivering proven systems and advanced capabilities at high speed, at scale, and with operational relevance.

The company stated it will continue to issue updates as task orders and delivery orders are executed under the IDIQ contract framework.

Media Contact: BJ Koubaroulis | pr@avinc.com | 703.718.4060

Investor Contact: Denise Pacioni | ir@avinc.com | 805.795.4108

Certain statements in this release may constitute "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated due to various risks and uncertainties.

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