AIRO Group (AIRO) Q4 2025 earnings summary

Executive summary

• 2025 marked a transformational year with operational, strategic, and financial progress, including going public, expanding manufacturing in the U.S. and Europe, and forming key joint ventures.

• The business is primarily driven by drones, accounting for 87% of 2025 revenue, with strong demand from NATO and allied defense customers and expanded activity in Ukraine and Asia-Pacific.

• Strategic focus shifted from passenger eVTOLs to medium-lift, multi-role drones for defense and logistics, aligning with customer demand and procurement cycles.

• Delivered autonomous systems to NATO-aligned customers, supported U.S. forces with training, and completed the first U.S.-manufactured RQ-35 drone, advancing toward Blue UAS certification.

• Entered strategic partnerships and joint ventures, including with Nord Drone and Bullet, to accelerate drone deployment and expand market reach.

Financial highlights

• Full-year 2025 revenue was $90.9 million, up from $86.9 million in 2024; Q4 2025 revenue was $48.3 million, up from $39.7 million in Q4 2024.

• Gross profit for 2025 was $54.4 million (59.9% margin), down from $58.3 million (67.1%) in 2024; Q4 gross margin was 61.4%.

• Operating loss for 2025 was $28.8 million, compared to $17.4 million in 2024; Q4 operating income was $6 million.

• Net loss for 2025 was $4.1 million, a significant improvement from $38.7 million in 2024; Q4 net result was near breakeven.

• Adjusted EBITDA for 2025 was $5.7 million (6.2% margin), down from $33.7 million (38.8%) in 2024; Q4 Adjusted EBITDA was $8.9 million (18.4% margin).

Outlook and guidance

• 2026 revenue growth expected at 15%-25% year-over-year, driven by a $150 million drone backlog and excluding potential upside from new joint ventures.

• Blue UAS certification expected in H1 2026, anticipated to expand procurement opportunities.

• U.S. sales not included in 2026 guidance, but future ramp-up anticipated as U.S. pipeline builds.

• Guidance is conservative to allow for timing shifts in backlog conversion.

• Focused on investing for long-term success and scaling production, certification, and go-to-market execution.