Palladyne AI wins $1 million defense contract for missile subsystem

Palladyne AI Corp. (NASDAQ: PDYN and PDYNW) announced it secured a contract with a major U.S. defense prime contractor to deliver a propulsion subsystem for an existing U.S. missile system program.

The Salt Lake City-based defense technology company expects the contract to generate nearly $1 million in revenue, which will be recognized in 2026. Palladyne AI plans to complete deliverables by the end of the third quarter of 2026.

The defense prime contractor selected Palladyne AI based on its performance record on defense programs, manufacturing capabilities, and ability to meet accelerated timelines, according to the company's statement.

"This contract win represents a meaningful step in scaling our defense manufacturing revenues and reinforces our strategy of embedding Palladyne AI into long-lifecycle weapons programs," said Ben Wolff, chief executive officer of Palladyne AI.

The company develops artificial intelligence solutions, avionics, autonomous systems, UAV engineering services, and precision-manufactured components for defense and industrial markets. Palladyne AI stated the contract supports its strategy to integrate within the U.S. defense industrial base.

The contract represents an addition to the company's defense revenue stream and reflects validation of its domestically produced components, according to the press release statement.

You May Also Be Interested In

• SEC clears S-4 for Olin and Huntsman all-stock merger
• FDA clears Atrium Therapeutics IND for rare heart disease drug
• WISeKey reports 115% revenue rise in H1 2026, reaffirms FY outlook