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U.S. Army Awards $7.9M Contract to Skydio for Short Range Reconnaissance Tranche 2

1. SAIC awarded a $7.9M contract for Skydio's X10D drone systems. 2. The contract aids the U.S. Army's Short Range Reconnaissance capabilities. 3. Skydio's total support for the SRR program now totals $12.3M in FY25. 4. X10D drone meets stringent U.S. cybersecurity and operational standards. 5. This partnership strengthens SAIC's position in defense technology supply.

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Why Bullish?

SAIC's engagement in a significant defense contract enhances revenue and operational capabilities. Historically, defense contracts have boosted stock performance during increased warfare and security focus.

How important is it?

This contract is pivotal as it reflects SAIC's growing role in government defense projects, potentially unlocking future opportunities. Investor sentiment for defense firms often remains positive during government contract awards.

Why Long Term?

The partnership solidifies SAIC's standing in the defense industry, projecting sustained revenues. Similar contracts, like those from Northrop Grumman, have shown consistent long-term growth post-award.

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Latest contract extends multi-year SRR partnership, bringing Skydio's FY25 program support to $12.3M as Army advances tactical ISR capabilities

SAN MATEO, Calif., Oct. 14, 2025 /PRNewswire/ -- Skydio, the leading U.S.-based drone manufacturer and world leader in autonomous flight technology, in partnership with Science Applications International Corp. (NASDAQ:SAIC), has been awarded $7.9 million to deliver X10D small unmanned aircraft systems (sUAS) under the U.S. Army's Short Range Reconnaissance (SRR) Tranche 2 Low-Rate Initial Production contract.

The SRR program, managed by Program Executive Office Aviation's Project Manager for Unmanned Aircraft Systems (PM UAS), provides infantry platoons with organic reconnaissance and surveillance capabilities. This award continues Skydio's role as an SRR provider, transitioning soldiers from X2D/RQ28-A, fielded beginning in 2022 as part of SRR Tranche 1, to the enhanced X10D platform. This award builds on Skydio's first delivery SRR Tranche 2 program systems, announced in May 2025. This brings Skydio's total support of the SRR Tranche 2 program to $12.3M in FY25.

Skydio X10D delivers operational performance for tactical ISR missions:

  • A sensor package that is unrivaled in any sUAS this size, including a 48MP telephoto camera
  • A best-in-class Teledyne FLIR Boson+ thermal sensor that can pinpoint temperature differences at each pixel
  • Resiliency in the face of electronic warfare with onboard AI and autonomy
  • Built-in AI for visual navigation comes standard
  • Advanced obstacle avoidance in every direction
  • Enhanced operational resilience in challenging navigation environments through advanced proprietary technology that maintains positional awareness without relying on conventional navigation methods
  • Modular, open platform that supports custom third-party attachments and controllers
  • Powerful, full-stack security, starting with the chipset and its firmware
  • IP55 rating for nearly all-weather operation

X10D, part of the U.S. Department of War's Blue UAS Cleared List, also meets the stringent cybersecurity and capability requirements outlined by the Defense Innovation Unit.

Skydio now supports every branch of the U.S. military, 25 allied nations, alongside public safety agencies, utilities, and enterprise customers worldwide.

All Skydio drones are designed, assembled, and supported in the United States, and Skydio's manufacturing facility in Hayward, CA is one of the world's largest drone manufacturing facilities outside of China. For more information about Skydio for national security, please visit skydio.com/natsec.

About Skydio

Skydio is the leading U.S.-based drone manufacturer and world leader in autonomous flight, leveraging breakthrough AI to create the world's most intelligent flying machines for use by public safety, government, utility, and enterprise customers. Skydio designs, assembles, and supports its products in the U.S. from its headquarters in San Mateo, California.

Founded in 2014, Skydio is trusted by industry leaders and backed by top investors and strategic partners, including Andreessen Horowitz, Levitate Capital, Next47, IVP, Playground, and NVIDIA. For more information, follow Skydio on LinkedIn or visit skydio.com.

About SAIC

SAIC® is a premier Fortune 500 mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, civilian and intelligence customers includes secure high-end solutions in mission IT, enterprise IT, engineering services and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

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SOURCE Skydio

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