Stock Markets January 28, 2026

AeroVironment's UES Unit Secures $75 Million Air Force Task Order; Shares Tick Up

Five-year FRESH program award funds development of bio-enabled polymers, responsive materials and AI-accelerated discovery at Wright Patterson

By Derek Hwang AVAV
AeroVironment's UES Unit Secures $75 Million Air Force Task Order; Shares Tick Up
AVAV

AeroVironment's UES division won a $75 million, five-year task order from the U.S. Air Force under the Functional Responsive Experimentation for Systems and Humans (FRESH) program. The work will focus on advanced polymers, responsive materials, biomanufacturing and biologically driven techniques for material degradation and rare earth extraction, with research conducted at Wright Patterson Air Force Base in Dayton, Ohio. The announcement was followed by a modest rise in the company's stock.

Key Points

  • UES division awarded a $75 million, five-year Air Force task order under the FRESH program.
  • Work focuses on advanced polymers, responsive materials, biomanufacturing, and biologically driven degradation and rare earth extraction, conducted at Wright Patterson AFB.
  • AI will be used to accelerate discovery, testing and environmental evaluation; the contract extends collaboration with AFRL.

AeroVironment reported that its UES division was awarded a $75 million task order by the U.S. Air Force, and the company's shares rose about 2% on Wednesday after the announcement. The five-year award falls under the Functional Responsive Experimentation for Systems and Humans (FRESH) program and will support research into materials and biotechnology intended to bolster Air Force capabilities across air, space and weapons systems.

The work under the task order will be performed at Wright Patterson Air Force Base in Dayton, Ohio. It calls for the development and evaluation of new classes of materials, improved processing methods and refined modeling techniques aimed at producing next-generation polymers and responsive materials. According to the company, the program will combine efforts in biomanufacturing, polymer science and the integration of responsive materials to meet the program objectives.

Specific technical efforts outlined by the company include biologically driven approaches to controlled material degradation and techniques related to rare earth extraction. The research effort is also set to employ artificial intelligence tools to speed discovery, streamline testing and support environmental evaluation processes tied to material performance and lifecycle considerations.

Dr. John Hogan, Vice President of Defense and Interagency Services at AeroVironment, said the work explores the intersection of biology and materials science. "We're entering an era where biology and materials science are converging," he said. "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 task order continues an existing relationship between AeroVironment and the Air Force Research Laboratory (AFRL), extending collaborative research efforts focused on advanced materials and responsive systems.


Key points

  • The UES division received a $75 million task order from the U.S. Air Force under the FRESH program, spanning five years.
  • Research will target advanced polymers, responsive materials, biomanufacturing and biologically driven methods for degradation and rare earth extraction, with efforts at Wright Patterson AFB.
  • The program will incorporate artificial intelligence to accelerate discovery, testing and environmental assessments, and builds on AeroVironment's work with the Air Force Research Laboratory.

Risks and uncertainties

  • The task order spans multiple technical areas where outcomes are uncertain - progress depends on successful development and validation of new materials and processing methods, which affects defense materials and aerospace sectors.
  • Integration of biologically driven processes and AI-based discovery presents technical and validation challenges that may affect timelines and costs relevant to defense research budgets.

Risks

  • Technical uncertainty in developing and validating new materials and processes could delay results and affect defense and aerospace supply chains.
  • Combining biological methods and AI-driven discovery introduces integration and validation challenges that may impact timelines and program costs.

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