AIRO Group (NASDAQ:AIRO) Posts Earnings Results

by · The Cerbat Gem

AIRO Group (NASDAQ:AIRO – Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.06) earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $43.18 million for the quarter. AIRO Group had a negative return on equity of 3.47% and a negative net margin of 23.86%.

Here are the key takeaways from AIRO Group’s conference call:

  • Q2 results exceeded expectations: Revenue rose 76% year over year to $43.2 million, gross margin improved to 64%, and operating income reached $1.7 million versus a $19.7 million loss in the prior-year period. Adjusted EBITDA increased to $6.8 million from $4.7 million.
  • Drone backlog grew approximately 9% sequentially to $163 million, primarily consisting of international RQ-35 orders, with the majority expected to convert to revenue within 12 months. The company said future U.S. orders could materially increase reported backlog, as current figures exclude U.S. opportunities.
  • The RQ-35 received Blue UAS certification, making it eligible for U.S. Department of Defense and federal procurement channels. AIRO also reported strong early customer interest in its newly unveiled RQ-70 long-range ISR drone and reaffirmed production start for January 2027.
  • AIRO reiterated 2026 revenue growth guidance of 15%–25%, but expects third-quarter revenue to decline sequentially after a delivery was pulled into Q2, increased foreign-exchange headwinds of a few million dollars in the second half, modest full-year gross-margin compression, and adjusted EBITDA remaining negative in the mid- to high-teens millions.
  • Training continued to underperform expectations, and management said the capital-intensive segment has limited synergies with its drone and avionics focus. AIRO is evaluating strategic alternatives and expects to provide an update by year-end, while Ukrainian permitting restrictions are delaying technology transfers associated with the Nord Drone and Bullet joint ventures.

AIRO Group Price Performance

Shares of NASDAQ:AIRO traded down $1.14 during trading on Friday, reaching $9.57. The company had a trading volume of 1,509,575 shares, compared to its average volume of 491,587. The firm has a market capitalization of $300.94 million, a price-to-earnings ratio of -20.36 and a beta of 1.90. The stock’s fifty day moving average price is $7.46 and its 200 day moving average price is $8.38. AIRO Group has a fifty-two week low of $5.71 and a fifty-two week high of $25.90.

Insider Activity at AIRO Group

In related news, CFO Mariya Pylypiv sold 30,028 shares of the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $7.66, for a total transaction of $230,014.48. Following the completion of the sale, the chief financial officer directly owned 80,188 shares of the company’s stock, valued at $614,240.08. This trade represents a 27.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 22.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On AIRO Group

A number of large investors have recently bought and sold shares of the company. Geode Capital Management LLC acquired a new stake in shares of AIRO Group in the 2nd quarter worth $355,000. Creative Planning acquired a new position in shares of AIRO Group during the second quarter worth about $217,000. Norges Bank purchased a new position in AIRO Group during the second quarter worth about $481,000. WINTON GROUP Ltd acquired a new stake in AIRO Group in the second quarter valued at about $298,000. Finally, Raymond James Financial Inc. acquired a new stake in AIRO Group in the second quarter valued at about $43,000.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on AIRO shares. Wall Street Zen raised AIRO Group from a “strong sell” rating to a “sell” rating in a report on Saturday. Mizuho cut their target price on shares of AIRO Group from $16.00 to $13.00 and set an “outperform” rating on the stock in a report on Tuesday, July 21st. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of AIRO Group in a research report on Friday, May 29th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, AIRO Group currently has a consensus rating of “Hold” and an average target price of $17.33.

Get Our Latest Research Report on AIRO

AIRO Group Company Profile

(Get Free Report)

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.

Featured Articles