Utah’s Teal Drones Secures $260M Defense Contract for Battlefield Drones

Utah-based Teal Drones has made a significant milestone in the defense industry by securing a $260 million contract with the U.S. Army for its small reconnaissance drones. Founded by entrepreneur George Matus at the age of 16 in 2014, Teal Drones has emerged victorious in a multi-phase federal contract process, outcompeting better-financed rivals like Skydio.

The contract involves the supply of up to 5,880 of Teal’s Black Widow drone systems to the U.S. Army over the next five years. Each system includes two drones and a controller, with a total system price of around $45,000, depending on the configuration. The Black Widow drone is a 3.5-pound quadcopter capable of cruising at 25 mph and capturing high-resolution imagery in both daylight and darkness. It features advanced on-board computing power and mechanisms to thwart signal jamming, which were successfully tested against Russian electronic warfare technology.

The selection of Teal Drones’ Black Widow was based on a rigorous evaluation process that included performance and reliability tests, as well as soldier feedback. The drone’s modular build allows for specific system upgrades without a full redesign, a feature that aligns with the Army’s technical requirements and manufacturability needs.

George Matus, the founder of Teal Drones, emphasized that the company’s mission-driven approach was a key factor in securing the contract. “Our goal from the beginning was to build an American-made drone that helps warfighters win on the modern battlefield,” Matus stated during an investor meeting.

In addition to the U.S. Army contract, Teal Drones is also expanding its partnership with Palladyne AI and Red Cat Holdings to integrate Palladyne AI’s artificial intelligence software into its drones. This partnership aims to enhance the autonomous operation and intelligence, surveillance, and reconnaissance capabilities of Teal’s drones).