US Army’s 400 Million Laser Deal Accelerates Race To Harden Bases From Kamikaze Swarms

Building on our investment theme that the US military is racing to harden its bases with counter-drone systems capable of defeating Group 1-3 drones, and potentially Group 4 threats, Bloomberg reported late in Friday’s US cash session that the Army plans to purchase at least $400 million of AeroVironment’s counter-drone laser systems, citing a person familiar with the deal.

The source told the outlet that the deal would provide the Army with dozens of LOCUST systems, which use artificial intelligence to track and identify small and medium-sized drones before human operators engage them with a high-energy laser.

AeroVironment’s LOCUST system was originally developed by BlueHalo, which the defense firm acquired for about $4.1 billion in 2025. The latest LOCUST X3 uses a scalable 20-to-35-plus-kilowatt laser, AI-enabled detection and tracking software, and precision beam control to defeat Group 1-3 drones.

LOCUST can be deployed at fixed installations, including military bases, or mounted on tactical vehicles such as the Infantry Squad Vehicle and Joint Light Tactical Vehicle.

The economics of laser weapons are almost certainly a major focus among military planners. At roughly $5 per shot, compared with a $100,000 rocket or a million-dollar interceptor missile, lasers offer one of the most cost-effective ways to defeat Group 1-3 drones.

Drone Groupings (via Piper Sandler) 

The report sent AeroVironment’s stock soaring nearly 8% during the final hour of Friday’s US cash session. The shares have been cut in half since late 2025 but recently found support near the $140 level.

More broadly, the Goldman Sachs US Defense equity basket (GSXUDFNS) is also reversing higher after a five-month slump.

How to profit:

• “Only The Beginning”: How To Profit From The Asymmetric Warfare Boom
• This American Drone-Motor Company Is Positioned For “Massive Procurement Tailwind”

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