AIRO Group (NASDAQ:AIRO) Announces Earnings Results, Beats Expectations By $0.23 EPS

AIRO Group (NASDAQ:AIRO) announced its earnings results on Thursday. The company reported ($0.38) EPS for the quarter, beating analysts’ consensus estimates of ($0.61) by $0.23, FiscalAI reports. The firm had revenue of $17.51 million for the quarter. AIRO Group had a negative return on equity of 3.48% and a negative net margin of 23.86%.

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

• Third-quarter revenue rose nearly 180% year over year to $17.5 million, while gross margin improved to 57% from 44%. Adjusted EBITDA loss narrowed to $7.5 million from $8 million.
• Drone backlog exceeded $200 million, including U.S. opportunities, with most expected to convert to revenue within 12 months; the company said its existing manufacturing capacity can support the orders. U.S. programs account for about one-quarter of backlog.
• AIRO reaffirmed 2026 revenue growth guidance of 15%–25% but now expects results at the lower end, citing orders pushed into 2027 and foreign-exchange headwinds. It continues to expect a full-year adjusted EBITDA loss in the mid-to-high teens of millions.
• The company reported its first U.S. orders for the RQ-35 and RQ-70 and a $1.5 billion opportunity pipeline across its segments. Management said RQ-70 production remains on track for January 2027, though pipeline opportunities are not guaranteed orders.
• Net loss widened to $12 million from $8 million a year earlier, and management said investment in the JC/JX250 programs is a significant contributor to cash burn. Avionics revenue was also lower year over year amid softness in general aviation.

AIRO Group Stock Up 6.5%

Shares of AIRO traded up $0.35 on Thursday, hitting $5.81. 332,070 shares of the stock traded hands, compared to its average volume of 528,645. AIRO Group has a 1 year low of $4.53 and a 1 year high of $13.80. The stock’s 50 day moving average is $6.17 and its two-hundred day moving average is $7.83. The firm has a market capitalization of $183.49 million, a P/E ratio of -7.00 and a beta of 2.20.

Insider Activity at AIRO Group

In other AIRO Group news, COO John Uczekaj sold 7,230 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $7.10, for a total transaction of $51,333.00. Following the transaction, the chief operating officer owned 214,342 shares of the company’s stock, valued at $1,521,828.20. This represents a 3.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Mariya Pylypiv sold 8,697 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $7.08, for a total value of $61,574.76. Following the transaction, the chief financial officer directly owned 267,333 shares in the company, valued at approximately $1,892,717.64. This represents a 3.15% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 32,814 shares of company stock valued at $277,049 over the last ninety days. 22.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AIRO Group

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new position in AIRO Group in the second quarter valued at $9,609,000. Bank of America Corp DE acquired a new stake in AIRO Group in the 2nd quarter worth about $1,478,000. Russell Investments Group Ltd. boosted its stake in AIRO Group by 954.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 99,439 shares of the company’s stock worth $657,000 after buying an additional 90,005 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in AIRO Group in the 2nd quarter worth about $435,000. Finally, Royal Bank of Canada grew its holdings in AIRO Group by 373.3% in the 1st quarter. Royal Bank of Canada now owns 63,803 shares of the company’s stock valued at $485,000 after buying an additional 50,322 shares during the period.

Wall Street Analysts Forecast Growth

AIRO has been the subject of a number of analyst reports. Roth Capital assumed coverage on AIRO Group in a report on Tuesday, November 3rd. They issued a “buy” rating and a $16.00 price target for the company. Mizuho decreased their price objective on AIRO Group from $13.00 to $11.00 and set an “outperform” rating on the stock in a research note on Thursday, October 15th. Wall Street Zen upgraded AIRO Group from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 15th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of AIRO Group in a research report on Wednesday, August 26th. Three investment 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. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $16.50.

About AIRO Group

AIRO Group is an aerospace and defense company that develops and supplies technologies for commercial, government and defense customers. Its businesses span unmanned aircraft systems, avionics, pilot training and electric air mobility. The company’s offerings include drones and related systems, cockpit avionics through its Aspen Avionics business, and flight-training services. Its electric-air-mobility activities include the development of electric vertical takeoff and landing aircraft through Jaunt Air Mobility.