AIRO Group (NASDAQ:AIRO) reported fourth-quarter and full-year 2025 results that management described as a “defining year,” highlighted by a sharp rebound in quarterly revenue tied to delivery timing, continued drone-led demand, and expanded investment in U.S. manufacturing and future unmanned platforms.
Management frames 2025 as execution year and strategic pivot
Executive Chairman Dr. Chirinjeev Kathuria said the company made progress “operationally, strategically, and financially” in 2025 while refining its focus across drones, training, and avionics. Kathuria said AIRO is emphasizing “medium-lift, multi-role unmanned platforms that support logistics, ISR, and other mission-critical applications,” and noted the company “successfully went public, strengthened our balance sheet, expanded our U.S. manufacturing footprint, advanced towards Blue UAS certification, and announced strategic joint ventures.”
Fourth-quarter results lifted by delivery timing and upgrades
Chief Financial Officer Dr. Mariya Pylypiv said fourth-quarter revenue rose to $48.3 million from $39.7 million in the prior-year quarter, citing “continued demand for our drone platforms” and deliveries incorporating a “customer-requested capability upgrade” to the RQ-35 Heidrun system. Revenue also increased sharply from $6.3 million in the third quarter, which Pylypiv attributed primarily to “approximately $20 million of revenue that shifted from the third quarter into the fourth quarter as a result of customer modifications.”
Gross profit in Q4 was $29.7 million for a 61.4% gross margin, down from 69.9% a year earlier. Pylypiv said the margin change reflected “product mix, the timing of deliveries across the year, as well as the integration of upgraded system capabilities.” Operating income was $6.0 million, down from $16.1 million in the year-ago quarter, which she attributed to “continued investment in engineering development, product scaling, and public company infrastructure.”
AIRO reported break-even results for the quarter compared to a net loss of $0.8 million a year earlier. Q4 EBITDA was $8.8 million versus $8.7 million in the prior-year quarter, while adjusted EBITDA was $8.9 million compared with $19.2 million a year earlier, which Pylypiv said reflected product mix dynamics and ongoing scaling investments.
Full-year 2025: revenue up modestly; investment continues
For full-year 2025, Pylypiv reported revenue of $90.9 million, up from $86.9 million in 2024, driven “primarily by the drone segment despite shipment timing adjustments early in the year.” Full-year gross profit was $54.4 million and gross margin was 59.9%, down from 67.1% in 2024, which she attributed to “a different mix of product deliveries and the investments we have made to support long-term growth.”
The company posted an operating loss of $28.8 million versus an operating loss of $17.4 million in 2024, reflecting “continued investment in engineering capabilities, production capacity, and infrastructure.” Net loss for the year was $4.1 million compared with a $38.7 million net loss in 2024, which Pylypiv said reflected “the absence of certain non-recurring items recorded in the prior year.”
Pylypiv reported full-year EBITDA of $24.7 million compared with negative $13.1 million in 2024, while adjusted EBITDA was $5.7 million versus $33.7 million in 2024. She said the year-over-year change reflected “shipment timing, product mix, and investments made throughout the year to scale the business following our transition to a public company.”
Operations: U.S. production milestone, certification timeline, and joint ventures
Burns highlighted completion of the first RQ-35 drones “produced to full operational standard” at AIRO’s Phoenix, Arizona manufacturing facility, calling them “the first U.S.-manufactured RQ-35 systems.” He said the systems completed validation and a comprehensive flight test campaign in December.
Burns also said the company expects Blue UAS certification in the first half of 2026, with additional color during Q&A that the company is “estimating to finish up that Blue certification mid-year.” He characterized certification as helpful, though “not necessarily the primary driver” of near-term revenue. He also noted Sky-Watch, together with Aalborg University and a third partner, was awarded a $4.5 million program to develop counter-electronic warfare technology for integration into Sky-Watch platforms.
On capacity, Burns said Denmark facility modernization is intended to increase throughput, adding that the company has “the capacity to produce roughly 30% beyond our existing order stream.” In the U.S., he said Phoenix is operational and the “target capacity” is “up to 100 units per month,” with current production focused on demos, trials, and business development as AIRO works to expand its U.S. Department of Defense pipeline.
AIRO also discussed two joint ventures announced in the second half of 2025: a joint venture with Nord Drone Group, and a proposed joint venture with Bullet, a Ukrainian developer of high-speed interceptor drones. Burns said AIRO is working to finalize the Bullet joint venture “in the coming quarter.” During Q&A, Burns said the joint ventures are contemplated as “close to a 50/50 type of a relationship,” and management said any contribution in 2026 would be additive to the company’s guidance.
Backlog, liquidity, and 2026 outlook
Pylypiv said cash totaled $74.4 million as of Dec. 31, 2025, and noted a follow-on offering in the third quarter raised $89.4 million in gross proceeds. She said the capital provides resources for growth investments and flexibility for “opportunistic acquisitions.”
On demand visibility, Pylypiv said that as of March 31, 2026, AIRO had “approximately $150 million in drone segment backlog,” while cautioning that backlog could change with foreign exchange rates and could be reduced by delivery delays, production disruptions, or cancellations. Burns said demand remains “primarily international while the U.S. pipeline continues to build,” and reiterated that revenue is recognized upon delivery and customer acceptance, contributing to quarterly variability.
For 2026, Pylypiv guided to full-year revenue growth of 15% to 25% year over year, stating the outlook does not include the Nord Drone and Bullet joint ventures. She added that first-quarter revenue is expected to be driven mainly by field upgrades to deployed systems, with larger shipments planned for subsequent quarters, and said it is more appropriate to view results on a full-year basis given delivery timing and customer acceptance dynamics.
- Drone backlog: Approximately $150 million as of March 31, 2026
- 2026 outlook: 15%–25% full-year revenue growth, excluding joint ventures
- Cash balance: $74.4 million as of Dec. 31, 2025
In response to an analyst question about reduced investment from stepping away from passenger eVTOL development, Kathuria said it was “fair to say that capital expenditure is going to drop off” as the company focuses on a medium-lift, multi-role cargo vehicle. Burns closed the call by saying AIRO is “excited about our results from 2025” and is “looking forward to a very successful 2026,” citing continued momentum in the drone segment.
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.
