U.S. Army Awards $7.9M Contract to Skydio for Short Range Reconnaissance Tranche 2
MWN-AI** Summary
The U.S. Army has awarded Skydio a $7.9 million contract to supply its advanced X10D small unmanned aircraft systems (sUAS) as part of the Short Range Reconnaissance (SRR) Tranche 2 initiative. This partnership, which involves collaboration with Science Applications International Corp. (SAIC), brings Skydio's total engagement in the SRR Tranche 2 program to $12.3 million for the fiscal year 2025. The SRR program enhances infantry platoons' reconnaissance and surveillance capabilities, transitioning from the previously deployed X2D/RQ28-A drones to Skydio's more advanced X10D system, which began deliveries earlier this year.
The Skydio X10D is equipped with a powerful suite of sensors, including a 48MP telephoto camera and a state-of-the-art Teledyne FLIR Boson+ thermal sensor, which provides exceptional image clarity and precision. The drone's resilience against electronic warfare is bolstered by its onboard AI and autonomy, facilitating superior obstacle avoidance and navigation in complex environments. As a modular platform, the X10D also supports various third-party attachments, enhancing its tactical functionality.
In alignment with the U.S. Department of Defense’s stringent security standards, the X10D is on the Blue UAS Cleared List, ensuring it meets cybersecurity and operational capability requirements. Skydio, founded in 2014 and based in San Mateo, California, is a pioneer in autonomous flight technology and supports various sectors including military, public safety, and enterprise applications. With a manufacturing facility in Hayward, California, Skydio emphasizes domestic production and innovation in drone technology.
MWN-AI** Analysis
The recent $7.9 million contract awarded to Skydio by the U.S. Army marks a significant milestone in the drone manufacturing sector, particularly in light of rising defense budgets. This contract is part of a broader $12.3 million allocation for the Short Range Reconnaissance (SRR) Tranche 2 program, emphasizing Skydio's pivotal role in advancing military reconnaissance capabilities.
From a market perspective, this award signals a robust demand for advanced drone technology, especially among military applications. The efficient technologies integrated into the Skydio X10D, such as AI-driven obstacle avoidance and superior thermal imaging capabilities, position the company favorably against competitors. Investors should view these advancements as indicators of Skydio's potential growth trajectory, particularly as the defense sector increasingly prioritizes autonomous systems.
Moreover, the synergy between Skydio and Science Applications International Corp. (SAIC) invites further optimism. This collaboration enhances Skydio's operational reach and credibility in the defense sector, aligning with broader governmental trends toward modernization and technical innovation. Given that Skydio also serves multiple branches of the military and various allied nations, the diversification of its client base may mitigate risks associated with reliance on single contracts.
Investors should consider positioning themselves in sectors benefiting from heightened defense spending, particularly companies focused on innovative technologies like drones. The geopolitical climate, alongside the U.S. Army’s commitment to enhancing tactical ISR capabilities, suggests significant future growth potential both for Skydio and the defense technology market at large.
In conclusion, the Skydio contract not only reinforces the company's status as a leader in the autonomous drone space but also presents a compelling investment opportunity in a sector poised for continued expansion as military technologies advance.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
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 SAIC)" rel="nofollow" target="_blank">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.
SOURCE Skydio
FAQ**
How does the partnership with SCIENCE APPLICATIONS INTERNATIONAL CORPORATION SAIC enhance Skydio's capabilities in delivering the X10D small unmanned aircraft systems for the U.S. Army's Short Range Reconnaissance program?
What specific advancements has Skydio achieved in the X10D platform compared to the previous X2D/RQ28-A model provided under the Short Range Reconnaissance Tranche 1 program, particularly in collaboration with SCIENCE APPLICATIONS INTERNATIONAL CORPORATION SAIC?
Can you elaborate on the role of SCIENCE APPLICATIONS INTERNATIONAL CORPORATION SAIC in **supporting** Skydio's development and integration of advanced technologies in the X10D platform for tactical ISR missions?
How will the $7.9 million contract awarded to Skydio, alongside SCIENCE APPLICATIONS INTERNATIONAL CORPORATION SAIC, impact the overall objectives and effectiveness of the U.S. Army's Short Range Reconnaissance initiative?
**MWN-AI FAQ is based on asking OpenAI questions about Science Applications International Corporation (NASDAQ: SAIC).
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