AeroVironment (NASDAQ:AVAV) shares gained about 2% on Wednesday after the company said its UES division had won a $75 million task order from the U.S. Air Force to support work on advanced biotechnology and smart materials.
The five-year award falls under the Functional Responsive Experimentation for Systems and Humans (FRESH) program and is aimed at developing next-generation materials to strengthen Air Force capabilities across air, space and weapons platforms. Research activities will be carried out at Wright-Patterson Air Force Base in Dayton, Ohio.
As part of the task order, AeroVironment will design and test new materials, manufacturing processes and modeling approaches focused on advanced polymers and adaptive materials. The scope includes biomanufacturing, responsive material integration, and biologically driven techniques for material degradation and rare-earth element extraction.
“We’re entering an era where biology and materials science are converging,” said Dr. John Hogan, Vice President of Defense and Interagency Services at AeroVironment. “Our work under this program explores that frontier—creating responsive systems that enhance human performance, reduce maintenance burdens, and ensure operational dominance for the Air Force.”
The project will also incorporate artificial intelligence to speed up discovery, testing and environmental assessment. The new contract further builds on AeroVironment’s existing collaboration with the Air Force Research Laboratory (AFRL).