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Aug 20, 2026 1:27 PM
Updated Aug 21, 2026 1:40 PM

The US Army has awarded Elroy Air a $46-million contract to further develop its Chaparral unmanned aerial system for multi-mission payload delivery in contested environments.

The US Army has awarded Elroy Air a $46-million contract to further develop its Chaparral unmanned aerial system for multi-mission payload distribution in complex domains.

Under the deal, the California-based company will enhance the vertical takeoff and landing (VTOL) aircraft’s payload mechanisms, navigation in signal-denied areas, cyber-protected communications, and mobile mission planning.

Work will take place at the firm’s center in South San Francisco, with completion expected by February 2029.

The Army Contracting Command at Aberdeen Proving Ground, Maryland, is handling oversight of the contract.

“This contract reinforces the critical role that heavy-lift autonomous hybrid VTOL drones will play in modern defense operations,” said Dr. Andrew Clare, CEO of Elroy Air.

“We are thrilled to expand our partnership with the US Army to bring rapid, autonomous heavy cargo delivery capabilities that increase operational throughput and reduce risk for our troops.”

The Chaparral VTOL cargo drone. Photo: Elroy AirThe Chaparral VTOL cargo drone. Photo: Elroy Air

Elroy’s Chaparral VTOL Drone

The Chaparral cargo drone measures 22 feet (7 meters) in length and has a wingspan of 30 feet (9 meters).

It carries more than 500 pounds (227 kilograms) of payload through detachable pods and is powered by a hybrid-electric powertrain.

The logistics platform can deploy through unpaved airstrips, achieve ranges up to 450 miles (724 kilometers), and fly at 155 knots (178 miles/287 kilometers per hour).

Kratos Defense & Security Solutions serves as the exclusive US manufacturer for the transport aircraft under a domestic partnership, with production occurring in Sacramento and initial deliveries scheduled for late 2026.

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