Amentum and the U.S. DoD's Emerging Drone Defense Strategy: A Gold Mine for Investors in the C-UAS Sector

The U.S. Department of Defense (DoD) is accelerating its transformation into a multi-domain warfare powerhouse, with drone defense—specifically Counter-Unmanned Aircraft Systems (C-UAS)—emerging as a cornerstone of its strategy. At the heart of this evolution is Amentum, a global engineering and technical solutions leader, which has positioned itself as a critical enabler of the DoD's $13.4 billion autonomy and uncrewed systems initiative for fiscal year 2025. For investors, the confluence of policy shifts, technological innovation, and soaring defense budgets creates a compelling case for long-term growth in the C-UAS sector—and Amentum is uniquely poised to benefit.

The DoD's $3.1 Billion Bet on C-UAS: A Strategic Imperative

The DoD's 2025 budget allocates $3.1 billion specifically to C-UAS programs, reflecting the urgent need to counter the proliferation of low-cost, high-impact drone threats from adversaries and non-state actors. This funding is part of a broader $13.4 billion investment in autonomy systems, with $9.4 billion dedicated to unmanned aerial vehicles (UAVs) alone. The rationale is clear: Drones are no longer niche tools. They are now a central component of modern warfare, used for surveillance, logistics, and even precision strikes.

The recent executive orders signed by President Trump—“Unleashing American Drone Dominance” and “Restoring American Airspace Sovereignty”—have further turbocharged this momentum. These directives not only prioritize the development of U.S.-made drones but also establish a Federal Task Force to address airspace vulnerabilities. The Federal Aviation Administration (FAA) is now mandated to restrict drone flights over critical infrastructure, while the Department of Justice (DOJ) will intensify enforcement against illegal drone operations. For Amentum, which has been awarded a $260 million, five-year contract by the Department of Homeland Security (DHS) to develop C-UAS prototypes, these policies translate into a stable, expanding market.

Amentum's Strategic Partnerships: Scaling C-UAS Capabilities

Amentum's recent collaborations with WaveAerospace and TB2 Aerospace underscore its ambition to dominate the C-UAS ecosystem. By partnering with WaveAerospace, Amentum is integrating advanced uncrewed aircraft like the FalconTM and HuntressTM into its portfolio, enabling both military and commercial clients to leverage cutting-edge drones for reconnaissance and logistics. Meanwhile, its work with TB2 Aerospace on the Drone Recharging Operational Payload System (DROPS) introduces a game-changing capability: autonomous payload delivery to warfighters.

These partnerships are not just about hardware. Amentum's use of agile engineering and augmented reality tools (e.g., its Augmented Reality Remote Expert™ system) ensures rapid iteration and deployment of solutions. This agility is critical in a sector where threats evolve daily. For example, Amentum's $946 million contract to modernize the U.S. Army's fixed-wing transport fleet demonstrates its ability to apply similar innovation to C-UAS systems, integrating real-time diagnostics and remote expert support to enhance operational efficiency.

Policy and Budget Synergies: A Tailwind for Investors

The DoD's budgetary focus on C-UAS is not just a one-off. The White House has signaled a long-term commitment to expanding federal funding for state and local law enforcement agencies to acquire counter-drone technologies. This includes grants for equipment to detect, track, and neutralize drones—a market expected to grow from $106.7 million in 2025 to $117 million in 2026, per recent projections. Amentum's existing contracts with the DoD and DHS position it to capture a significant share of this growth.

Moreover, the executive orders are reshaping the regulatory landscape. By mandating stricter airspace controls and enhancing enforcement capabilities, the government is creating a demand for scalable C-UAS solutions. Amentum's work with SkySafe to deploy cloud-based drone detection systems along the U.S. Southern border is a case in point. This project, part of the DoD IAC program, exemplifies how Amentum is translating policy into profit.

Investment Implications: A Sectors in Motion

For investors, the C-UAS sector offers a rare combination of defensive growth and technological disruption. Amentum's stock, which has historically traded in line with broader defense indices, is now gaining traction as the sector's tailwinds intensify. reveals a steady upward trend, outpacing both benchmarks. This performance is driven by its diverse contract pipeline and recurring revenue streams from DoD and DHS programs.

However, the real opportunity lies in the medium-term. With the DoD's 2025 budget locked in and Trump's executive orders setting a clear policy trajectory, the C-UAS market is expected to compound at a double-digit rate through 2027. Amentum's strategic partnerships and technological edge—coupled with its ability to deliver rapid, iterative solutions—position it to outperform peers. Investors should also monitor its $490 million Navy contract for the T-54A training system, which showcases its logistics and sustainment capabilities—a critical differentiator in a sector where lifecycle management is key.

Conclusion: Amentum as a Proxy for a Securitized Future

The U.S. is entering an era where drones are both a weapon and a target. Amentum's role in this duality—developing advanced drones while countering adversarial ones—makes it a unique player in the defense industrial base. For investors, the company's alignment with DoD priorities, its innovative partnerships, and the administration's policy push create a compelling thesis for medium-term growth.

In a world where airspace sovereignty is increasingly contested, Amentum is not just adapting—it's leading. And for those with the foresight to invest now, the skies have never looked more promising.