Archer Aviation just locked in a new revenue stream. The air taxi company announced an agreement after Monday’s close to supply its electric power train to defense contractor Anduril, marking the first time Archer has licensed the technology to another company.

The move gives Archer a clearer path toward generating revenue, something it recently said it expects to begin in the first quarter of 2026. CEO Adam Goldstein called the deal a sign of how Archer sees its Midnight aircraft. Instead of viewing it only as an eVTOL, he says the company sees Midnight as a platform for a broader range of aerospace technologies that can extend far beyond the aircraft itself.

Anduril plans to use Archer’s propulsion system on its new autonomous drone called Omen. The drone features a “hover-to-cruise” design and is the first product from Anduril’s joint venture with the UAE’s EDGE Group. The UAE has already committed to buying 50 Omen systems, with full-scale production expected in 2028.

Goldstein has said the defense side of the business could ultimately be larger than Archer’s commercial air taxi segment, at least over the next decade. Archer shares are down about 24 percent so far this year.