Leidos and Elroy Air to demonstrate autonomous aerial resupply drone for U.S. Marine Corps

Rhea-AI Summary

Leidos (NYSE: LDOS) and Elroy Air will demonstrate an autonomous Medium Aerial Resupply Vehicle – Expeditionary Logistics (MARV-EL) prototype for the U.S. Marine Corps in July 2024. This initiative, approved by the Navy and Marine Small Tactical Unmanned Aircraft Systems program office, is part of a contract to develop and test an uncrewed aircraft system for autonomous resupply missions. The demonstration will feature Elroy Air's Chaparral system at the U.S. Army Yuma Proving Grounds in Arizona. The Chaparral is a hybrid-electric vertical take-off and landing aircraft designed for efficient autonomous operations. The MARV-EL aims to provide logistics support to Marines in challenging environments. Leidos reported $15.4 billion in revenue in 2023, and Elroy Air is backed by significant venture capital and strategic investments.

Positive

• Leidos reported annual revenues of $15.4 billion for the fiscal year ended December 29, 2023.
• Approval to demonstrate the MARV-EL prototype is a significant milestone for Leidos and Elroy Air.
• The Chaparral system's hybrid-electric and vertical take-off and landing capabilities offer efficient autonomous operations.
• MARV-EL aims to enhance logistics support for Marines in challenging environments.
• The project showcases Leidos' and Elroy Air's innovative capabilities in autonomous aircraft systems.

Negative

• The success of the MARV-EL project is contingent on the flight tests scheduled for July 2024.
• High development and testing costs could impact Leidos’ financials if the project encounters delays or issues.

Insights

Aerospace & Defense Analyst

The demonstration approval of Leidos and Elroy Air's autonomous aerial resupply drone for the U.S. Marine Corps signifies a noteworthy technological step in military logistics. The MARV-EL prototype's potential to autonomously resupply forward-deployed troops offers a strategic advantage by ensuring uninterrupted supply chains even in challenging terrains and hostile environments.

This milestone highlights the collaboration between a well-established defense contractor (Leidos) and a tech startup (Elroy Air), underscoring the increasing trend towards innovation and agility in defense logistics. The utilization of hybrid-electric VTOL technology in the Chaparral system signifies a move towards more sustainable and efficient operations, reducing reliance on traditional manned aircraft. This could lead to lower operational costs and enhanced mission capabilities for the military.

Given the strategic importance of logistics in modern warfare, this development could lead to significant contracts and funding for both companies. For investors, this points to a potential long-term growth trajectory driven by increased demand for advanced unmanned logistics solutions in both military and commercial sectors.

Tech Expert

Elroy Air's Chaparral system represents a leap in autonomous aerial technology. The hybrid-electric vertical take-off and landing (hVTOL) capability, combined with the autonomous operations, makes it a highly versatile platform. This addresses a critical need for flexible, reliable and safe logistics support in contested or remote environments.

The advanced carbon composite airframe and modular payload capabilities reduce the need for ground personnel, aligning with the broader military objective of minimizing human risk. Moreover, this technology's potential applications extend beyond military use—commercial sectors such as disaster response, express shipping and even humanitarian aid could see transformative changes.

From an investment perspective, the success of this demonstration could position Elroy Air as a key player in the autonomous logistics market, potentially attracting further venture capital and strategic partnerships.

RESTON, Va., May 14, 2024 /PRNewswire/ -- Leidos (NYSE: LDOS), a FORTUNE® 500 innovation company, and Elroy Air, an autonomous aircraft systems and software development company, have been approved to demonstrate an autonomous Medium Aerial Resupply Vehicle – Expeditionary Logistics (MARV-EL) prototype for the Navy and Marine Small Tactical Unmanned Aircraft Systems program office (PMA-263). The flight test activities are scheduled for July 2024. The development and testing are part of a contract awarded last year to develop and demonstrate an uncrewed aircraft system (UAS) that can autonomously resupply forward-deployed ground forces for the U.S. Marine Corps.

"Leidos is pleased to team with Elroy Air to bring this critical capability to the warfighter," said Tim Freeman, Leidos senior vice president and Airborne Systems business area manager. "Approval to proceed to test is a major milestone and is the result of months of hard work by the team. We look forward to demonstrating how the Leidos and Elroy Air MARV-EL solution will help deliver a logistics advantage to the Marines and other branches of the military."

Leidos and Elroy Air are slated to demonstrate Elroy Air's Chaparral system at the U.S. Army Yuma Proving Grounds (YPG), Yuma, Arizona. The Chaparral is a "lift-plus-cruise" hybrid-electric vertical take-off and landing (hVTOL) cargo aircraft. The Chaparral system leverages the benefits of wing-borne flight driven by electric propulsion and turbo-generation for efficient autonomous operations and longer-range missions. It is designed with an advanced carbon composite airframe and modular automated payload capabilities to help reduce the personnel required versus legacy aircraft and enable zero-touch logistics.

"We're excited to work with Leidos to provide these critical capabilities to U.S. and allied forces," said Elroy Air CEO and Co-founder Dave Merrill. "We've been designing Chaparral from the beginning to move cargo and resupply troops in the battlespace without putting crews in harm's way. We look forward to demonstrating these capabilities and working towards serving the U.S. Marine Corps' goals for expeditionary logistics."

MARV-EL is a PMA-263 effort which is designed to provide commanders with a responsive capability to sustain Marine Corps Forces conducting expeditionary advanced base (EAB)and other distributed operations. MARV-EL, using autonomous operations, should be the 'middle-weight' unmanned logistics asset, providing combat sustainment to Marines when ground or manned aviation assets are unavailable due to threat, terrain, weather, or competing priorities.

About Leidos

Leidos is a Fortune 500® innovation company rapidly addressing the world's most vexing challenges in national security and health. The company's global workforce of 47,000 collaborates to create smarter technology solutions for customers in heavily regulated industries. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023. For more information, visit www.leidos.com.

About Elroy Air

Elroy Air is developing industry-first autonomous aircraft systems and cutting-edge software, revolutionizing the world of express shipping. Leveraging hybrid-electric and autonomous vehicle technologies, their vertical-takeoff-and-landing (VTOL) aircraft transcend traditional airport limitations, unlocking new frontiers in commercial air shipping, humanitarian aid, and military logistics. From agile, low-risk resupply for troops, to dynamic disaster response and firefighting support, to warehouse-to-warehouse express parcel transport, their technology reshapes logistics possibilities. With headquarters in South San Francisco and flight test operations in Byron California, Elroy Air is backed by premier venture capital firms including Catapult Ventures, Marlinspike Partners, Snowpoint Ventures, and Shield Capital. Strategic investment from industry giants like Lockheed Martin Ventures and support from visionary angel investors including early Uber executives drive the company's mission to provide same-day shipping to every person on the planet. For more information, visit elroyair.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended December 29, 2023, and other such filings that Leidos makes with the SEC from time to time.  Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contacts:

Melissa Lee Dueñas
(571) 526-6850
duenasml@leidos.com

Alyssa Pettus
(571) 526-6743
alyssa.t.pettus@leidos.com

Brandon Ver Velde
(571) 526-6257
brandon.p.vervelde@leidos.com

 

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SOURCE Leidos Holdings, Inc.

FAQ

What is the purpose of the MARV-EL prototype demonstration?

The MARV-EL prototype aims to demonstrate an autonomous resupply vehicle for the U.S. Marine Corps, enhancing logistics capabilities in challenging environments.

When is the MARV-EL flight test scheduled?

The flight test activities for the MARV-EL prototype are scheduled for July 2024.

Where will the MARV-EL demonstration take place?

The MARV-EL demonstration will take place at the U.S. Army Yuma Proving Grounds in Yuma, Arizona.

What is unique about Elroy Air's Chaparral system?

Elroy Air's Chaparral system features hybrid-electric vertical take-off and landing capabilities, designed for efficient autonomous operations and longer-range missions.

How much revenue did Leidos report for the fiscal year ended December 29, 2023?

Leidos reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023.