AIRO Group Holdings, Inc. announced that the final flights of its first U.S.-produced RQ‑35 intelligence, surveillance and reconnaissance (ISR) drones were completed on December 11, 2025, and the company publicly disclosed the milestone on December 16, 2025. The drones were built to the same specifications as those manufactured in the company’s Denmark facility, marking the first time the RQ‑35 platform has been produced domestically.
The RQ‑35 Heidrun is a battle‑proven, hand‑launched ISR system that can operate in GPS‑denied and electronically contested environments. With a proven track record of more than 500 missions per system, the platform is trusted by NATO allies and the Armed Forces of Ukraine. By establishing a U.S. production line, AIRO reduces lead times and supply‑chain risk for U.S. defense customers, aligning with the company’s “Made‑in‑America” strategy and broader U.S. initiatives to strengthen domestic defense manufacturing.
AIRO’s Q3 2025 financial results provide context for the milestone. Revenue fell 73% year‑over‑year to $6.3 million from $23.7 million in Q3 2024, while the net loss narrowed to $8 million from $30.3 million the prior year. Gross margin compressed to 44.4% from 68.7% due to a shift in product mix and shipment timing. Despite the revenue decline, the company’s liquidity remains strong, with $83.7 million in cash and cash equivalents and a robust booking pipeline of more than $190 million for 2025‑2026.
The U.S. production milestone fits into AIRO’s broader strategy to grow its Drones segment, the company’s primary revenue driver. Management has indicated that full‑year 2025 revenue is expected to exceed the $86.9 million recorded in 2024, supported by the expanded domestic manufacturing capacity and a growing demand for ISR solutions. The company’s four‑segment structure—Drones, Avionics, Training, and Electric Air Mobility—positions it to capture growth across both defense and commercial markets.
CEO Joe Burns said, “Completing the first U.S.-built RQ‑35 systems is a significant milestone for AIRO and a testament to the skill and dedication of our Phoenix and Denmark teams. Their seamless collaboration, rigorous training, and execution will enable us to deliver combat‑proven ISR systems from U.S. soil.” President and COO John Uczekaj added, “The close collaboration between our U.S. Drone team and the Sky‑Watch team in Denmark has accelerated our path to producing reliable, operationally proven RQ‑35 systems in Phoenix.” Executive Chairman Chirinjeev Kathuria noted, “This accomplishment is about keeping our promises—to our employees, investors, and clients. We set a clear goal to deliver the first complete RQ‑35 systems from our U.S. facility before the end of 2025, and we have done exactly that.”
AIRO’s expansion into U.S. production is complemented by a joint venture with Nord‑Drone and inclusion in the Russell 2000 and Russell 3000 indexes, underscoring the company’s growing footprint in the aerospace and defense sector. The company’s strong booking pipeline and continued investment in domestic manufacturing signal confidence in its long‑term growth trajectory.
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