Everforth shares rose Tuesday morning after the company said its federal government unit won a three-year, $115 million contract to support the U.S. Army's Nautilus artificial intelligence research and development program.

Shares were recently up 7% at $23.09. The stock has lost around half its value over the past 12 months.

The company said its Everforth ECS unit will support the U.S. Army Combat Capabilities Development Command Army Research Laboratory under the contract, helping develop, test and integrate advanced AI technologies for military applications.

As the prime contractor on the program, Everforth ECS will conduct research, development, testing and evaluation of trusted AI technologies designed to accelerate the transition of AI capabilities from laboratory research to operational use.

The work will focus on AI development, software engineering, cybersecurity, systems integration and testing, with an emphasis on deploying secure AI capabilities that support decision-making in bandwidth- and compute-constrained operational environments.

Everforth said the award expands its role in defense AI research and mission integration while supporting the Army's efforts to scale trusted AI technologies across military operations.