Investing.com - AeroVironment Inc. (NASDAQ: AVAV) shares gained 1.7% in after-hours trade Wednesday after the U.S. Department of War awarded the company a $500 million contract for counter-unmanned aerial systems.

The Simi Valley, California-based company received a firm-fixed-price contract for the procurement of commercial counter-unmanned aerial systems and counter small-unmanned aerial systems capabilities. The contract was announced today by the Department of War.

Work locations and funding will be determined with each order under the agreement. The estimated completion date for the contract is June 29, 2029.

Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. The contract number is W912CH-26-D-A073.

AeroVironment specializes in unmanned aircraft systems and tactical missile systems for military and commercial applications.