AIRO Group Highlights $190M Defense Drone Demand, Cargo UAS Path at Cantor Tech & Industrials Conference

Key Points

• Management said it has about $190 million of orders in progress slated for delivery through 2026, with defense drones as the immediate revenue driver while avionics and training provide steady recurring revenue and cargo UAS targeted for longer‑term growth.
• AIRO highlights the RQ-35 as a competitive differentiator—“battle proven” with thousands operating in Ukraine—and emphasizes operation in highly GPS‑contested environments plus planned onboard AI/autonomy, resilient communications, and U.S. manufacturing capacity in Phoenix.
• AIRO is pursuing a Canada‑first cargo certification under Part 29 with Montreal manufacturing (seeking reciprocal U.S. acceptance) and is advancing U.S. program access and certification efforts, including a target for Blue UAS certification in the first half of 2026.

Executives from AIRO Group NASDAQ: AIRO outlined the company’s strategic priorities at Cantor’s Global Technology and Industrials Conference, emphasizing near-term demand in defense drones, continued recurring revenue from avionics and training, and longer-term opportunities in cargo-focused uncrewed aircraft systems.

Core earnings drivers: defense drones now, cargo drones and avionics over time

CEO Joseph Burns described drones—particularly military drones—as the company’s primary driver in what he called a “fascinating new era of aerospace and defense.” Burns said the company does not see an end to demand, pointing to ongoing needs for replenishment and growth in conventional systems and drones.

CFO Dr. Mariya Pylypiv said AIRO is seeing strong demand from NATO customers and stated that, as of “9:30,” the company had about $190 million of orders in progress scheduled to be delivered through 2026. Pylypiv also highlighted “steady recurring revenues” from the company’s avionics training business and said the cargo drone could become a “very material contribution” to revenue growth as certification progresses.

Management characterized drones as the long-term growth segment, with avionics and training providing more predictable growth. Burns added that AIRO is also focused on growth in sensor platforms, including GNSS/GPS sensors designed to operate in environments impacted by jamming and spoofing.

Competitive positioning: RQ-35 performance and GPS-contested operations

Burns identified AIRO’s small drone platform, the RQ-35, as a key differentiator and said it is “battle proven” with “thousands of them” operating in Ukraine. He emphasized durability and maintainability, stating the aircraft is designed for repeat use and “goes out for a minimum of 500 missions,” and later added that AIRO’s drones flying today “average over 500 flight segments.”

He also highlighted the system’s ability to operate in “highly GPS contested” environments, describing a battlefield context with “jamming and spoofing” that affects “almost every drone in the theater except ours,” in his words.

Additional moats cited by management included:

• AI and autonomy: Burns said the next version will include onboard AI to enable “self-autonomy,” including target recognition and pattern recognition, enabling missions without an operator beyond simply following preset patterns.
• Communications resiliency: He noted the importance of spread spectrum radios and maintaining control links when communication spectrums are contested.
• U.S. manufacturing footprint: Burns said AIRO opened a new facility in North Phoenix to support production for U.S. military and government customers, citing requirements to manufacture within the U.S.

Technology focus: vertically integrated avionics, sensors, and multiple comm pathways

Management underscored vertical integration, with Burns stating that AIRO manufactures its own avionics and has “over 16,000 installations” in man-rated aircraft. He said that capability allows the company to rapidly implement certified technologies and adapt them to the drone environment.

On navigation and communications, Burns discussed the use of multiple pathways, including leveraging cellular networks as a backup for navigation and potentially communications, including in Ukraine through 5G networks. He also described interest in low-earth-orbit satellite developments and said AIRO could integrate receiver chipsets—mentioning options such as Iridium or Starlink—into avionics products to extend beyond line-of-sight constraints.

Burns argued that integrating satcom into systems could be comparatively low cost given AIRO’s in-house avionics manufacturing, citing an estimated “$50-$100 per set” to add a satcom system.

Executive Chairman Dr. Chirinjeev Kathuria also cited vertical integration as a source of cost efficiencies and adaptability, and noted the company had been awarded a $4.5 million counter electronic warfare program, which he said supports increased R&D efforts.

U.S. defense pathway: Phoenix production, flight tests, and Blue UAS timeline

Executives discussed AIRO’s efforts to expand in the U.S. market, referencing Department of Defense interest in ISR (intelligence, surveillance, and reconnaissance) capabilities. Burns said the U.S. is “waking up” to the need for effective ISR platforms that reduce risk to human operators, and noted AIRO is conducting flight demonstrations for special operations groups.

Kathuria said the Phoenix facility had completed “the first production of the RQ-35” and a “full flight test,” positioning the company for U.S. programs. He also said AIRO is making progress toward Blue UAS certification, which he indicated is expected to be completed in the “first half of 2026.”

Burns also discussed a potential variant known as the RQ-70, describing it as a larger airframe intended to extend flight time, enable autonomy and AI features, and incorporate over-the-horizon communications. He said current range limitations are driven more by communications than flight time, and suggested that satcom could enable theater-wide operations.

Cargo drone certification plan: Canada-first approach under Part 29 standards

On the cargo-focused drone program, Burns said AIRO is working directly with Transport Canada for certification. He cited resource constraints at the U.S. Federal Aviation Administration as a factor behind the decision to pursue certification in Canada.

Burns said the company plans to manufacture in Montreal at a former aerospace facility and noted that Canada is providing funding through programs to support the effort. He added that certification would be pursued under Part 29 rotorcraft standards and said that once certified in Canada, the aircraft would be “automatically reciprocally certified” in the United States.

In discussing capital allocation, executives said the company’s near-term focus is on scaling the drones business—particularly building out the Phoenix facility and continuing product development—while also investing in training to bid for higher-value U.S. defense contracts. Management described a disciplined approach to costs, highlighting just-in-time inventory, standardized processes across divisions, and a lean corporate overhead model. The company also said it would consider acquisitions opportunistically, prioritizing targets that enhance supply chain resilience, product capabilities, or cost structure.

About AIRO Group NASDAQ: AIRO

We are a technologically differentiated aerospace, autonomy, and air mobility platform targeting 21st century aerospace and defense opportunities. We leverage decades of industry expertise and connections across the drone, aviation, and avionics markets to provide leading solutions to the aerospace and defense market. We offer connected and diversified solutions providing operational synergies across our segments and are powered by an international footprint as well as supplier and public sector relationships.

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