AIRO Group (AIRO) Cantor Fitzgerald Global Technology & Industrial Growth Conference summary

Core business drivers and market outlook

• Drones, especially for military applications, are the primary earnings driver, with strong demand for replenishment and growth in conventional systems, particularly highlighted by ongoing conflicts and NATO customer needs.

• Large cargo drones are a secondary focus, shifting from eVTOL to cargo-specific applications.

• $190 million in orders are in progress for delivery through 2026, with recurring revenue expected from avionics training and future cargo drone certification.

• Training and avionics divisions provide predictable growth, while certification of cargo drones is expected to materially boost revenue.

• Expansion into new regions, including the Middle East, Africa, and Asia, is underway, supported by satellite offices and targeted hiring.

Competitive advantages and technology differentiation

• The RQ-35 drone is battle-proven, capable of over 500 missions, and uniquely resistant to GPS jamming and spoofing, providing a significant edge in contested environments.

• Onboard AI enables true autonomy, including target and pattern recognition, with applications beyond military, such as agriculture and firefighting.

• U.S. production facility in Phoenix enables compliance with domestic manufacturing requirements and supports scaling for government contracts.

• In-house avionics manufacturing, with over 16,000 installations, allows rapid tech integration and certification advantages.

• Vertical integration and proprietary sensor development enhance supply chain control and product quality.

R&D, investment, and cost management

• R&D is concentrated on drones and avionics, with a focus on production scalability and continuous product improvement.

• Recent $4.5 million award for a counter electronic warfare program is accelerating R&D efforts.

• Just-in-time inventory and lean hiring practices are emphasized to control costs and optimize cash flow.

• Standardized processes across divisions and disciplined spending support margin improvement.

• Acquisitions are opportunistic, targeting supply chain resilience and product enhancement in drones and avionics.