Dragonfly shares are trading volatile on Tuesday after the company announced the sale of Commander 3XL Unmanned Aerial Vehicle systems to a defense contractor.

What To Know: Draganfly ( DPRO ) said it secured an order for its Commander 3XL UAVs from a globally recognized defense firm specializing in persistent surveillance technologies. The systems will be used to enhance perimeter security, early warning, and real-time situational awareness at U.S. and allied military installations.

The company said its Commander 3XL UAV was selected for its modular payload design, extended endurance and AI-enabled mission control, which make it suitable for advanced military-grade surveillance programs.

"This sale marks a significant milestone for Draganfly ( DPRO ) as we expand our presence in the defense sector," said Cameron Chell, CEO of Draganfly ( DPRO ). "We are honored that the Commander 3XL has been chosen for integration into one of the world’s most advanced and enduring persistent surveillance platforms."

Draganfly ( DPRO ) added that the Commander 3XL's flexibility makes it a strong fit for both static and dynamic ISR environments, giving defense clients the ability to adapt to evolving operational demands.

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DPRO Price Action: At the time of writing, Dragonfly shares are trading 1.50% lower at $6.09, according to data from Benzinga Pro.

Image: This illustration was generated using artificial intelligence via Midjourney.