AIRO Group (NASDAQ:AIRO) Issues Quarterly Earnings Results

AIRO Group (NASDAQ:AIRO) issued its quarterly earnings results on Thursday. The company reported ($0.06) earnings per share (EPS) for the quarter, FiscalAI reports. AIRO Group had a negative net margin of 19.98% and a negative return on equity of 2.44%. The business had revenue of $43.18 million during the quarter.

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 Stock Up 26.8%

Shares of AIRO traded up $2.27 during trading hours on Thursday, reaching $10.77. 2,806,343 shares of the company traded hands, compared to its average volume of 575,283. AIRO Group has a 12 month low of $5.71 and a 12 month high of $25.90. The company’s fifty day moving average price is $7.41 and its two-hundred day moving average price is $8.39. The company has a market capitalization of $338.56 million, a price-to-earnings ratio of -22.90 and a beta of 1.90.

Analysts Set New Price Targets

A number of research analysts have issued reports on AIRO shares. Weiss Ratings restated a “sell (e+)” rating on shares of AIRO Group in a research note on Friday, May 29th. Zacks Research raised shares of AIRO Group to a “hold” rating in a report on Wednesday, April 15th. Wall Street Zen upgraded shares of AIRO Group from a “strong sell” rating to a “sell” rating in a report on Saturday, June 13th. Finally, Mizuho lowered their price objective on shares of AIRO Group from $16.00 to $13.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 21st. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $17.33.

Insider Transactions at AIRO Group

In other AIRO Group news, CFO Mariya Pylypiv sold 30,028 shares of AIRO Group stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $7.66, for a total value of $230,014.48. Following the completion of the sale, the chief financial officer owned 80,188 shares of the company’s stock, valued at approximately $614,240.08. The trade was a 27.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 22.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AIRO. Raymond James Financial Inc. purchased a new position in shares of AIRO Group in the second quarter worth about $43,000. Invesco Ltd. increased its holdings in AIRO Group by 1.2% in the 4th quarter. Invesco Ltd. now owns 200,630 shares of the company’s stock worth $1,641,000 after buying an additional 2,395 shares during the period. Bank of America Corp DE acquired a new position in AIRO Group in the 2nd quarter worth approximately $60,000. JPMorgan Chase & Co. purchased a new position in AIRO Group during the 3rd quarter worth approximately $54,000. Finally, Leonteq Securities AG acquired a new stake in AIRO Group during the 4th quarter valued at approximately $25,000.

About AIRO Group

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.