AIRO : Q1 2026 Earnings Presentation

Published: 2026-05-14 06:36:08 ET AIRO

Published on 05/14/2026 at 06:36 am EDT

May 14, 2026

On Plan. On Target. Building a Scalable Defense Platform.

Key Q1 2026 Highlights

Advanced AI-enabled drone capabilities with launch of full-stack RQ-35 variant

Expanded product portfolio with introduction of new medium-lift drone platforms

Scaled manufacturing capacity to support future demand growth

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Q1 2026 Earnings Presentation

Dr. Chirinjeev Kathuria

Executive Chairman

Global industrial and infrastructure investor with extensive experience building and scaling multi-national operating platforms

Joe Burns

CEO

Former U.S. Airline Captain with decades of aviation, defense and technology leadership

Executive team with deep experience across defense operations, aerospace manufacturing and public company execution

Scaled aerospace and defense platforms supporting U.S. and allied customers

John Uczekaj

President & COO

Leads platform execution across operations, manufacturing and program delivery

Extensive experience scaling avionics and aerospace manufacturing organizations

Mariya Pylypiv

CFO

Public company CFO with IPO, M&A and capital markets expertise

Experience in investment banking, corporate development and financial strategy

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Martin Schousboe

CEO, Sky-Watch

Veteran unmanned systems executive leading development and deployment of combat-proven autonomous drones

Dan Johnson

EVP, Marketing

Leads market positioning and engagement with the global investment community

Christopher Levy

SVP, Training & U.S. Business Development

Retired U.S. Air Force Colonel leading mission-critical training programs and U.S. defense engagement, supporting U.S. and allied forces

Francisco Molinero

VP, Drones

Leads execution and scale up of AIRO's drone platform, bringing deep DoW innovation, acquisition and transition to production experience

Mark Ferrari

VP, Avionics

Senior avionics executive with deep OEM,

aftermarket and defense aviation experience

Martin Peryea

SVP, Electric Air Mobility

Aerospace manufacturing and certification leader with decades of experience scaling complex aircraft programs

Aligned under a single operating model focused on execution, readiness and scalable delivery

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Training Readiness

Customer adoption and readiness are accelerated through integrated training and operational support, reinforcing long-term engagement

AIRO is a single, integrated defense platform designed to develop, deploy and sustain autonomous drone capability at scale

Fully Autonomous

AIRO's drones are designed, produced, upgraded and supported by one unified operating system

Avionics Architecture

Mission effectiveness enhanced through embedded avionics architectures that improve resilience, navigation and interoperability

Fully integrated drone platform delivering force multiplication, faster fielding and scalable deployment

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Continued focus on the transition from platform development to operational execution

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Announced new drone platforms including the RQ-70, JC250 and JX250

Advanced toward Blue UAS certification, targeted for Q2 2026

Expanded U.S. production and accelerated investments to support U.S. demand

Continue to pursue strategic JVs and evaluate new opportunities as part of growth strategy

Strengthened balance sheet, enabling disciplined organic and inorganic investment

Achievements demonstrate controlled execution and platform readiness for scale

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operational scale

RQ-35 Heidrun

Global defense customers accelerating investments in systems that deliver speed, resilience and

Increased Demand

Higher defense spending driving demand for drone systems

Mission-Oriented

Strong focus on autonomous ISR and counter-electronic warfare capabilities

Force Design Shift

Strategic shift from bespoke platforms to attritable force multipliers

Field Design

Increasing emphasis on interoperability, rapid fielding and readiness

AIRO's integrated drone platform is structurally aligned with evolving defense priorities

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AIRO has strategically expanded its global presence to support defense procurement pathways and platform scale-up

North America

Government, defense and training engagements supporting U.S. forces and qualification pathways

Europe

NATO customers, industrial partners and operational feedback loops

Asia Pacific

Allied defense engagements supporting emerging

autonomy requirements

Middle East

Defense cooperations and regional partner

developments

Business development scaled in lock-step with platform readiness and execution

Note: Map shading based on general regions, excluding select countries.

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Integrated Platform at Work Across Core Missions

AIRO's integrated drone platform is actively supporting real world defense use cases today

Autonomous systems operating in contested and GPS-denied environments

Integrated training programs accelerating adoption and operational effectiveness

Embedded avionics improving mission continuity, survivability and interoperability

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Aligned with Allied Defense Spending Trends and Initiatives

RQ-35 Heidrun / RQ-70 Dainn

AIRO is well-positioned against a backdrop that increasingly favors interoperable, scalable autonomous systems such as the RQ-35 as well as innovative kinetic systems and multi-purpose cargo systems

Allied Defense Spending Rising

Paradigm Shift in Modern Warfare

"NATO to Shift Focus From Tanks

to Drones, AI at July Summit"

- Bloomberg (March 2026)

"Cheap drones are reshaping the

war in the sky"

- Reuters (March 2026)

"War Department Asks Industry to Make More Than 300K Drones, Quickly, Cheaply"

- U.S. Department of War (December 2025)

NATO Defense Expenditure

($ billions)(1)

$1,026

+3% CAGR

$1,412

$747

$279

$838

$574

Bullet Interceptor Drone / OWA NORD 10 & 15

2014A 2025E

JC250 / JX250

U.S. NATO Europe and Canada

Platform relevance driven by strategic

shift towards rapidly deployable drone systems

Strong and sustained demand from NATO-aligned and allied defense customers

Source: Bloomberg and NATO Secretary General's Annual Report (2025).

(1) Based on 2021 prices and exchange rates. 12

FLAGSHIP

RQ-35

2027 Launch

RQ-70

2027 Launch

JC250

2027 Launch

JX250

Flagship ISR drone platform designed for defense applications

‒ GPS-denied technology

‒ Extreme weather resistant

‒ Advanced optics

‒ Fully autonomous

New drone platforms expected to complement and expand existing product portfolio

‒ Battlefield tested

Next-gen ISR drone platform designed for additional defense applications

‒ Extended flight range

‒ Higher payload capacity

‒ Upgraded sensor options

‒ Full AI integration

‒ Highly competitive pricing

New autonomous cargo drone platform designed for logistics missions

‒ Patented slow rotor tech

‒ Special heavy cargo

‒ Multi-role applications

New autonomous cargo drone platform variant designed for ISR and logistics

‒ Leverages JC250 platform

‒ Tactical, ISR configuration

‒ Multi-role applications

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Drone Segment Backlog(1)

Visibility

Commercial agreements negotiated with multiple government customers

Strong relationships with key officials and decisionmakers around the world

Demonstrated capabilities with U.S. forces overseas, establishing credibility

Growing interest and significant whitespace for drones and drone services

Majority of revenues supported by a robust backlog underpinned by growing demand and defense spending

(1) Represents backlog as of April 30, 2026 for the RQ-35 Heidrun which is spread amongst several countries. This backlog amount was translated to U.S. dollars using applicable exchange rates as of market close on April 30, 2026, and may increase or decrease based on fluctuations in foreign exchange rates. Drones segment backlog represents unfilled orders for which we have purchase orders or other definitive agreements with customers

outside of the U.S., as well as orders for which NATO countries have allocated funds but for which no definitive agreement has been executed but is expected once through the administrative process, in a majority against 14

which we expect to perform and recognize revenue in the next 12 months.

Executing With Discipline In 2026

Ongoing scaling initiatives across production, certification and go-to-market execution

Investing in the business for long-term success rather than optimizing for any given quarter

Reaffirming 15% - 25% revenue growth expectations for full year 2026

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Q1 2026 Earnings Presentation

($ in M)

Three Months Ended March 31,

2026

2025

Revenue

$8.9

$11.8

Gross Profit

$2.4

$6.9

Gross Profit Margin %

26.6%

58.8%

Net Loss

($15.5)

($2.0)

Adjusted EBITDA(1)

($12.8)

$0.1

Adjusted EBITDA Margin %(1)

NM

0.9%

Revenue of $8.9M, which was in line with internal expectations and reflects normal seasonality and timing of customer shipments

Gross profit margin decrease primarily driven by product mix within Drones

‒ Greater contribution from lower-margin upgrades

vs. full system deliveries

Note: "NM" denotes non-meaningful.

‒ Margins expected to improve over the balance of the year as drone deliveries resume

Net loss of $15.5M, which reflects lower revenue, higher cost of sales and continued investment in engineering, production scaling and public company infrastructure

Decrease in Adjusted EBITDA reflects impact of product mix dynamics and continued investments to support long-term growth

Drones segment backlog represents unfilled orders for which we have purchase orders or other definitive agreements with customers outside of the United States, as well as orders for which NATO countries have allocated funds but for

which no definitive agreement has been executed but is expected once through the administrative process, in each case against which we expect to perform and recognize the majority of revenue in the next 12 months. Drones segment 17

backlog amount was translated to U.S. dollars using applicable exchange rates as of market close on April 30, 2026, and may increase or decrease based on fluctuations in foreign exchange rates.

Quarterly Revenue by Segment

$48.3

1.2

1.6

$39.7

1.0 1.4

$23.7 $24.6

0.7 1.1

2.0 1.5 45.5

37.4

$13.7

1.3 $9.8 $11.8 $8.9

3.0 0.6 20.9 1.1 22.0

2.2 0.7

2.3 $6.3 1.7

9.4 6.9 8.5 1.6

1.5 6.5

3.1

Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26

Drones Avionics Training

In Drones, delivered upgrades in Q1 and expect deliveries to resume in Q2

‒ Targeting Blue UAS certification in Q2 2026, which is expected to expand access to procurement opportunities with DoW

‒ Introduced several new drone platforms

including the RQ-70, JC250 and JX250

Avionics performed in line with internal expectations; no change to long-term trajectory

‒ Building solid pipeline, supported by multiple

multi-year OEM agreements

‒ Meaningful synergies yet to be unlocked, with opportunities to integrate with Drones business

Exploring strategic alternatives for Training

business as part of portfolio optimization strategy

‒ Sharpening overall focus on core military and commercial drones business

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Quarterly Drone Revenue

$28.0

2023

$9.4

Q1-24

$6.9

Q2-24

$20.9

Q3-24

$37.4

Q4-24

$74.7

2024

$8.5

Q1-25

$22.0

Q2-25

$3.1

Q3-25

$45.5

Q4-25

$79.1

2025

$6.5

Q1-26

Drone revenue is largely shaped by customer order cycles and shipment timing

Historically, AIRO has experienced stronger sales in the second half of each year, which aligns with typical government procurement cycles

Despite variability, AIRO has maintained annual gross margins (approx. 65%+) and year-over-year growth

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$83.5

$74.4

$54.2

$40.3

$13.5

Q1-25

Q2-25

Q3-25

Q4-25

Q1-26

Cash

Key Statistics(2)

$53.0M

Net Cash

$1.2M

Total Debt

$54.2M

Cash

Total Debt and Contingent Consideration

Total Debt(1)

$91.4

Contingent Consideration

40.0

51.4

$19.3

$12.5

$2.9 $1.2

Q1-25

Q2-25

Q3-25

Q4-25 Q1-26

Strong cash position following the company's IPO and follow-on offering in 2025

Balance sheet has been significantly de-levered and capital structure has been simplified

Prudently deploying cash as the continues to business scale

Includes related party borrowings, revolving line of credit, current and long-term debt, investor notes and due to seller.

As of March 31, 2026. 20

Disclaimer

AIRO Group Holdings Inc. published this content on May 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2026 at 10:35 UTC.