Military drone manufacturer Airo benefits from the increased global demand for armaments, going public without fear of tariffs and stock market turmoil.

Airo Group Holdings Inc., a drone manufacturer, is launching its first stock issuance promotional roadshow (Roadshow) as it enters the U.S. stock market. Airo announced on Thursday that it plans to issue 5 million shares, with an expected offering price of $14 to $15 per share, and will be listed on the NASDAQ under the ticker symbol AIRO.

This company, headquartered in Albuquerque, New Mexico, will raise $75 million with the help of securities underwriters Cantor, BTIG, Mizuho, and Bancroft Capital. Airo will issue up to 25.64 million shares after listing, and if the IPO price reaches the upper limit of the issuance price, Airo's market value will be as high as $410 million.

Airo stated in its IPO application that the negative impact of potential tariffs will last until 2025, but aside from the shadow of tariffs, as NATO countries strive to strengthen assistance to Ukraine in its defense against Russia and the demand from regions like the Middle East, Airo estimates that the increase in global military spending will benefit the company.

Airo stated in the application documents that the war between Ukraine and Russia, conflicts in the Middle East, and the escalating geopolitical tensions in the Pacific region have heightened global concerns, leading many governments to place greater emphasis on national defense and security, increase defense spending budgets, and be willing to adopt new technologies and solutions.

According to Precedence Research, the military drone market size is expected to increase from approximately $16.9 billion in 2025 to $24.75 billion in 2030. Airo states that the company's products will play a role in future arsenals. Additionally, the U.S. military is transforming into a smaller and more agile force, conducting operations through observation, communication, and precision targeting technologies, which will accelerate the use of small military drones worldwide.

Airo's co-founder and chairman is Indian-American entrepreneur Chirinjeev Kathuria, who has helped other companies go public, including UpHealth Inc., UPHL, and Ocean Biomedical Inc. Airo's CEO Joseph Burns previously worked at United Airlines as the general manager of technology and flight testing.

Airo report states that the net loss for 2024 is $38.7 million, with revenue of $86.94 million, while the net loss for 2023 is $32.5 million, with revenue of $43.3 million. About $75 million of the income in 2024 comes from the Sky-Watch drone division, $9 million from the Aspen Avionics business, and $4 million from the military training defense business Coastal Defense Inc.

Introduction to Airo Group Holdings Inc

Airo Group Holdings Inc is an independent aerospace platform targeting opportunities in the defense and aerospace markets of the 21st century. Airo is divided into four operational sectors including drones, avionics, military defense training, and electric air transportation.

This article discusses how the military drone manufacturer Airo benefits from the increasing global demand for arms, going public without fear of tariffs and stock market volatility, first appearing in Chain News ABMedia.