State and regional incentives support phased manufacturing growth and job creation

AeroVironment, Inc. ("AV") (NASDAQ:AVAV), a global defense technology leader, today announced plans to invest $15 million to expand advanced production capabilities in Greene County, Ohio, near Dayton.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260602196110/en/

AV's planned Dayton-area expansion strengthens domestic defense manufacturing and biotechnology production, creating skilled jobs and accelerating advanced capabilities near AFRL and Wright-Patterson Air Force Base.

Today marked a significant step forward in AV's Dayton expansion as $7 million of the company's total investment was approved by the Ohio Tax Credit Authority.

The expansion strengthens AV's domestic manufacturing footprint and supports continued growth across critical defense programs, including advanced biotechnology manufacturing in support of the Air Force Research Laboratory (AFRL) in Dayton.

AV will expand project sites in the City of Beavercreek and City of Xenia adding approximately 44,000 square feet designed to support pilot-scale and mid-volume production of advanced biotechnology materials and components. The sites will enable specialized manufacturing, integration, and testing activities aligned with national security priorities, positioning AV to help meet growing demand across the Department of War's critical technology list for scalable biomanufacturing capabilities and mission-critical systems.

"Dayton and the surrounding community is where some of the nation's most important advanced research and defense innovation is happening, and proximity to the customer matters," said Wahid Nawabi, Chairman, President, and Chief Executive Officer at AV. "Being close to AFRL and the broader defense innovation ecosystem allows our teams to collaborate faster, transition technology more rapidly, and deliver advanced capabilities directly aligned with mission needs."

Through a cooperative effort with JobsOhio and the Ohio Department of Development, the expansion project is expected to create 200 new jobs and generate an estimated $28 million per year in regional economic impact, building on AV's existing footprint in the Dayton area.

AV's investment will be supported by a performance-based incentive package led by the State of Ohio, including assistance through JobsOhio, tied to verified job creation and operational milestones. Additional state and regional incentives under consideration include refundable job-creation tax credits and workforce development support.

"AV's decision to expand in Greene County is another powerful signal that Ohio is the place where America's most advanced aerospace and defense companies can thrive," said Ohio Governor Mike DeWine. "From Wright-Patterson Air Force Base and the AFRL to the skilled men and women at work in Dayton every day, Ohio provided the strategic advantage and partnerships to bring these 200 new, mission-critical jobs to its cutting-edge facility."

The expansion will initially support pilot-scale production, with the flexibility to scale into a full-rate manufacturing facility as demand increases. The facilities have been purpose-designed to accommodate future growth in both workforce and production capacity without disrupting ongoing operations.

The Ohio expansion follows several recent AFRL contract wins for AV, including:

$499 million contract to advance electromagnetic spectrum survivable materials
$75 million contract to advance biotech and smart materials.
$25 million award focused on accelerating human performance and biotechnology capabilities for warfighter readiness.
$20 million award to accelerate development of next-generation ceramic materials

AV's Greene County expansion reinforces its strategy to scale domestic manufacturing and skilled talent while leveraging Ohio's strong aerospace and defense ecosystem to rapidly build, test, and field advanced technologies with key proximity to nearby Wright-Patterson Air Force Base and the AFRL.

The expansion builds on AV's broader strategy to strengthen domestic manufacturing capacity, enhance supply-chain resilience, and invest in highly skilled technical workforces across the United States.

AV recently announced a $30 million expansion in Albuquerque, New Mexico, establishing a vertically integrated, next-generation manufacturing campus expected to generate more than $670 million in economic impact over the next decade, create more than 450 high-wage jobs, and increase production of mission-critical defense and space technologies.

AV also recently announced a $20.2 million expansion of its Huntsville, Ala. facility to support Low-Rate Initial Production and future Full-Rate Production of Freedom Eagle-1 (FE-1) in order to support urgent U.S. Army and Combatant Command operational needs while advancing AV's broader strategy of innovation, scale, and national security.

"AV's expansion in Beavercreek and Xenia is a vote of confidence in Ohio's skilled manufacturing workforce, world-class aerospace and defense innovation sector, and our ability to help great companies move from prototype to production with speed and precision," said JobsOhio President and CEO J.P. Nauseef. "This investment deepens AV's commitment to the Dayton region and reinforces what we hear from companies every day: Ohio is the right place to build the next generation of national security technology."

WHAT THEY'RE SAYING

"Dayton has always been a city that knows how to build, innovate, and deliver for the nation," said Johnathan Jones, Senior Vice President of the Cyber and Mission Solutions Group at AV. "With its deep engineering heritage, proximity to AFRL, and one of the most skilled technical workforces in the country, this region is uniquely positioned for advanced defense manufacturing. AV's investment reinforces that Dayton is not just a place to do business — it's a place to grow, scale, and build the future of national security technology."

"This expansion strengthens AV's ability to scale advanced technologies from research and development into operational production at the speed our customers require," said Mary Clum, President of the Space, Cyber and Directed Energy Segment at AV. "By expanding our manufacturing and integration capabilities in Ohio, we are investing in the infrastructure, talent, and regional partnerships needed to accelerate innovation and deliver next-generation capabilities that support critical national security missions."

"These expansions come as the federal government continues to emphasize the importance of defense contractors investing in domestic facilities, resilient supply chains, speed of delivery, and skilled workforces," said Church Hutton, Chief Growth Officer at AV. "AV's Ohio growth reflects this national priority and positions the company to meet accelerating demand across defense, aerospace, and space markets."

"AV's commitment to establish advanced biomanufacturing production operations in the Dayton Region fits perfectly with the region's strong defense and manufacturing sectors and brings an opportunity for our regional workforce to be on the leading edge of an exciting new technology," said Jeff Hoagland, President and CEO of the Dayton Development Coalition. "We stand ready to support AV's growth in our community and know the company has a bright future here."

"As Chairman of the Senate Workforce Development Committee, I am excited about this new expansion of AV in both their Beavercreek and Xenia facilities," said State Sen. Kyle Koehler, Ohio Senate District 10. "This is exactly what we want to see happening all across Ohio as we work on HB 292 in my committee. The Ohio Defense and Space Advisory Commission will help Ohio, and especially, Greene County, to attract technology companies that offer advanced and high paying jobs."

"AV's expansion reinforces the fact that the Dayton region is at the heart of the national aerospace, defense, and research ecosystems," said Congressman Mike Turner (Ohio's 10^th District). "The Miami Valley offers an unmatched convergence of talent, research infrastructure, and defense expertise. Nowhere else in the country can claim such deep roots in aerospace and defense innovation, or such a direct line to the institutions driving it forward. AV's investment is the latest proof that Dayton and Ohio remain at the center of it all."

"I am delighted to hear about AeroVironment's expansion here in Beavercreek, Ohio," said State Representative Brian Lampton (R-Beavercreek). "Our efforts in the Ohio legislature to reduce burdensome regulations and provide an improved and predictable business climate through the Business First Caucus continues to attract these fantastic employment opportunities for our region."

About AV

AeroVironment ("AV") (NASDAQ:AVAV) is a defense technology leader delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, loitering munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities—built to meet the mission needs of today's warfighter and tomorrow's conflicts. At the core of these technologies lies AV_Halo™, a modular, mission-ready suite of AI-powered software tools that empowers warfighters and enables full-battlefield dominance: detect, decide, deliver. With a national manufacturing footprint and a deep innovation pipeline, AV delivers proven systems and future-defining capabilities at speed, scale, and operational relevance. For more information, visit www.avinc.com.

About JobsOhio

JobsOhio, Ohio's private nonprofit economic development corporation, enhances company growth and personnel development through business attraction, retention, and expansion across ten competitive industry sectors. With a team of seasoned professionals, JobsOhio utilizes a comprehensive network to foster talent production in targeted industries and attract talent through Find Your Ohio. Collaborating with seven regional partners, including Dayton Development Coalition, Lake to River Economic Development, Ohio Southeast Economic Development, One Columbus, REDI Cincinnati, Regional Growth Partnership, and Team NEO, JobsOhio delivers world-class customer service to provide companies with a competitive advantage. Learn more at www.jobsohio.com. Follow us on LinkedIn, Twitter and Facebook

Safe Harbor Statement

Certain statements in this press release may constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties, which could cause actual results to differ materially. Factors that may cause such differences include, but are not limited to, our ability to perform under existing contracts and obtain new ones; regulatory changes; competitor activities; market growth; product development challenges; and general economic conditions. For a more detailed discussion of these risks, please refer to AeroVironment's filings with the Securities and Exchange Commission. We undertake no obligation to update forward-looking statements as a result of new information or future events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260602196110/en/

Media Contact:

BJ Koubaroulis

pr@avinc.com

703.718.4060

Investor Contact:

Denise Pacioni

ir@avinc.com

805.795.4108

JobsOhio Media Contact:

Matt Englehart

Englehart@jobsohio.com

614.300.1152

AV to Expand Advanced Production Capabilities in Dayton Area