The U.S. Army has placed a firm order for 82 AeroVironment P550 unmanned aircraft systems under a $117.3 million contract, marking the first major production buy of the company's new battalion-level reconnaissance drone since its October 2024 unveiling.
First production buy under the Long-Range Reconnaissance program
The award, disclosed in the Department of Defense's daily contracts list, is structured under the Army's Long-Range Reconnaissance (LRR) program. Contract completion is scheduled for July 23, 2026, an unusually compressed delivery timeline that reflects the service's urgency to field organic, battalion-controlled deep-look reconnaissance.
The P550 is a Group 3 fixed-wing system designed to give Army battalions persistent surveillance well past the front edge of the battle area, complementing smaller hand-launched drones already in the inventory.
Why the P550 fits the Army's drone-heavy modernisation push
Army leaders have prioritised long-range sensing as part of their counter-UAS and deep-strike concept of operations. The P550 buy follows a steady stream of UAS contracts to AeroVironment, including the Red Dragon long-range precision-strike drone and the broader defense-tech demand picture reflected in the company's most recent results.
Counter-drone and reconnaissance budgets keep climbing
The order arrives the same week the U.S. Army awarded up to $106 million to L3Harris for VAMPIRE counter-drone systems and obligated funds to iRocket's Hydra-70 drone interceptor program, underscoring how quickly the Pentagon is layering reconnaissance and air-defence procurements.
Reporting based on coverage from Army Recognition and DoD contract announcements.