Archer Aviation is positioning its defense business to align with shifting Pentagon spending priorities, as the company secures a U.S. Air Force role under the Agility Prime program and ramps up an autonomous hybrid-electric VTOL platform. The market narrative around Archer has been strengthened by its reported first delivery of its Midnight aircraft to the Air Force in 2024 and the unveiling of its Thunder autonomous aircraft for military missions, alongside a major move to expand capabilities through a proposed acquisition of Boeing’s Insitu, Wisk Aero, and SkyGrid businesses.
Key takeaways
- Price move: The article does not provide a stock price performance figure for Archer or Joby.
- Catalyst: Archer’s U.S. Air Force Agility Prime contract progress and the launch of its Thunder autonomous hybrid-electric VTOL platform, plus an announced deal to acquire Boeing’s related defense and autonomy businesses.
- What’s changing: The Department of Defense shifted Agility Prime toward hybrid aircraft and autonomous flight technologies, narrowing the scope of Joby’s existing contract.
- Implication for investors: Archer’s defense strategy is framed as a closer fit to autonomy, hybrid propulsion, range, and uncrewed mission needs—though execution risk remains for new platforms and contract payments are not guaranteed.
What drove Archer’s defense narrative
Archer has been a long-running eVTOL candidate for military applications, and the company’s latest defense alignment centers on the Pentagon’s move toward autonomy and hybrid-electric designs.
According to the article, Archer’s contract with the U.S. Air Force’s Agility Prime program is valued at up to $142 million. The company delivered its first Midnight aircraft to the Air Force in 2024 after receiving a military airworthiness assessment from the Department of Defense. The military has been evaluating Midnight for missions that include personnel transport, logistics, medical evacuation, and intelligence and surveillance.
Archer’s defense plan is also tied to its newer Thunder platform. The article says Archer partnered with defense technology company Anduril to develop an autonomous hybrid-electric VTOL platform, and that the companies unveiled Thunder in July as a Group 5 autonomous aircraft built specifically for military missions.
How the Pentagon’s priorities shifted
The competitive backdrop is shaped by the Department of Defense’s adjustments to Agility Prime. The article reports that the DoD shifted the program toward hybrid aircraft and autonomous flight technologies in 2025 and reduced the scope of Joby’s existing contract.
In response, Joby is described as building out autonomous capabilities and pursuing additional government work, including efforts with L3Harris. The article also states that Joby agreed to acquire defense contractor Resonant Sciences for approximately $500 million, with Resonant contributing expertise across areas including advanced sensing, electronic warfare, communications, autonomous systems, and low-observability aircraft technology. It also notes that Resonant generated more than $100 million in revenue over the previous 12 months and would become Joby’s dedicated defense business after closing.
In this framing, the article argues that Archer has already structured its defense strategy around the same themes the Pentagon is prioritizing—autonomy, hybrid propulsion, and uncrewed mission capability—potentially giving Archer the edge in competing for defense dollars.
Market reaction: what investors are weighing
The article does not specify any immediate share-price move, but it outlines two investor-relevant levers: contract traction and platform readiness. For Archer, the key near-term question is how quickly Thunder converts from a newly unveiled program into demonstrated capability and sustained demand. The article also highlights that the $142 million Agility Prime value is a maximum potential figure, not guaranteed revenue.
For Joby, the pressure point is that its existing Agility Prime scope was reduced, even as it seeks to offset that through autonomy development and defense expansion via the Resonant acquisition. The article’s comparison suggests that both companies have defense exposure, but their alignment with the newest Pentagon direction differs.
Archer’s planned expansion after the Boeing deal
Beyond its Agility Prime work, Archer has pursued a larger growth path through an announced acquisition deal. In August, the company said it would acquire Boeing’s Insitu, Wisk Aero, and SkyGrid businesses, according to the article.
The article states that Insitu alone generates more than $200 million in annual revenue. It also characterizes the combined acquisitions as a meaningful expansion of Archer’s aerospace, defense, and autonomous-flight capabilities. However, it stops short of implying that Archer is headed for immediate dominance in defense—citing, instead, the execution risk that comes with integrating new businesses and proving new aircraft platforms.
Execution and contract timing remain central. Archer’s defense progress depends on how its hybrid-electric autonomous designs perform in military evaluation and how future contract awards translate into recurring work. In parallel, Joby’s defense ramp will hinge on integrating Resonant Sciences and advancing its autonomy roadmap after Agility Prime scope reductions.
What to watch next
Investors will likely focus on milestones tied to autonomy demonstrations, additional defense contract awards, and tangible progress from Archer’s Thunder platform and its Boeing-related expansion plan. Additional clarity on defense procurement timing and platform evaluation outcomes—along with the broader trajectory of Pentagon spending toward hybrid and autonomous flight—will be important drivers in the months ahead.
