The U.S. Department of Defense has spent years evaluating electric vertical takeoff and landing (eVTOL) aircraft, with Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY) emerging as primary beneficiaries. However, for investors seeking the stronger defense opportunity today, Archer presents a compelling case.
Archer holds a contract with the U.S. Air Force’s Agility Prime program valued at up to $142 million. The company delivered its first Midnight aircraft to the Air Force in 2024 following a military airworthiness assessment from the Department of Defense. The military is evaluating the Midnight for missions including personnel transport, logistics, medical evacuation, and intelligence, surveillance, and reconnaissance.
Joby has also secured significant defense funding, with its Air Force contract reaching a potential value of $131 million for up to nine aircraft. Joby has operated at Edwards Air Force Base and continues developing autonomous flight technology with the Air Force. So why favor Archer?
The Pentagon’s priorities are shifting
Joby disclosed that the Department of Defense shifted the Agility Prime program toward hybrid aircraft and autonomous flight technologies in 2025, reducing the scope of Joby’s existing contract. In response, Joby is developing autonomous capabilities and pursuing additional government contracts, including work with L3Harris. The company also agreed to acquire defense contractor Resonant Sciences for approximately $500 million. Resonant already works on active national security programs, bringing expertise in advanced sensing, electronic warfare, communications, autonomous systems, and low-observability aircraft technology, and generated over $100 million in revenue over the previous 12 months.
Once the acquisition closes, Resonant will become Joby’s dedicated defense business, providing an established defense operation that can be integrated with Joby’s hybrid aircraft and autonomous-flight technology. Meanwhile, Archer has already built its defense strategy around this shift.
Archer partnered with defense technology firm Anduril to develop a new autonomous hybrid-electric VTOL platform. In July, the companies unveiled Thunder, a Group 5 autonomous aircraft specifically designed for military missions.
Image source: Getty Images.
Unlike Archer’s all-electric Midnight air taxi, Thunder uses a hybrid-electric powertrain to provide greater range and endurance. It is also autonomous and designed to carry configurable payloads depending on the mission. Archer’s defense ambitions are expanding even further.
In August, Archer announced a deal to acquire Boeing’s Insitu, Wisk Aero, and SkyGrid businesses. Insitu alone generates more than $200 million in annual revenue, while the three businesses would significantly expand Archer’s aerospace, defense, and autonomous-flight capabilities. However, this does not mean Archer is about to become the next Lockheed Martin.
The $142 million Air Force contract represents a maximum potential value, not guaranteed revenue, and Thunder is still a new platform that must prove itself. Joby should not be counted out, either; its long-standing military relationship and autonomous technology could yield additional defense contracts. However, Archer currently has the cleaner alignment with where Pentagon spending is heading: autonomy, hybrid propulsion, longer range, and uncrewed military aircraft. This gives Archer the edge in the battle for defense dollars.
