AIRO Group (NASDAQ:AIRO) Posts Quarterly Earnings Results

AIRO Group (NASDAQ:AIRO) announced its quarterly earnings data on Thursday. The company reported ($0.06) EPS for the quarter, FiscalAI reports. AIRO Group had a negative return on equity of 2.44% and a negative net margin of 19.98%.The company had revenue of $43.18 million for 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 Price Performance

Shares of AIRO stock traded down $1.12 during trading hours on Friday, reaching $9.59. 504,617 shares of the stock were exchanged, compared to its average volume of 576,614. AIRO Group has a 12-month low of $5.71 and a 12-month high of $25.90. The firm has a market capitalization of $301.67 million, a P/E ratio of -20.48 and a beta of 1.90. The business’s fifty day moving average is $7.44 and its two-hundred day moving average is $8.38.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of AIRO Group in a research report on Friday, May 29th. Wall Street Zen raised AIRO Group from a “strong sell” rating to a “sell” rating in a research report on Saturday, June 13th. Finally, Mizuho dropped their target price on AIRO Group from $16.00 to $13.00 and set an “outperform” rating for the company in a research report on Tuesday, July 21st. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $17.33.

Insider Buying and Selling at AIRO Group

In other news, CFO Mariya Pylypiv sold 30,028 shares of AIRO Group stock in a transaction on Wednesday, June 17th. The shares were 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 approximately $614,240.08. The trade was a 27.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 22.90% of the company’s stock.

Institutional Trading of AIRO Group

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in shares of AIRO Group during the 2nd quarter worth about $9,609,000. Woodline Partners LP grew its position in shares of AIRO Group by 41.0% in the 3rd quarter. Woodline Partners LP now owns 2,753,067 shares of the company’s stock valued at $52,859,000 after buying an additional 800,456 shares during the last quarter. Alyeska Investment Group L.P. acquired a new stake in AIRO Group during the 3rd quarter worth $15,030,000. HighTower Advisors LLC increased its position in shares of AIRO Group by 936.8% during the fourth quarter. HighTower Advisors LLC now owns 666,176 shares of the company’s stock worth $5,449,000 after purchasing an additional 601,924 shares in the last quarter. Finally, Vanguard Group Inc. boosted its position in shares of AIRO Group by 406.0% in the 3rd quarter. Vanguard Group Inc. now owns 505,951 shares of the company’s stock valued at $9,714,000 after purchasing an additional 405,951 shares during the period.

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.