Aerospace and defense tech firm Airo misses Q4 revenue estimates
Overview
Aerospace and defense tech firm's Q4 revenue rose yr/yr but missed analyst expectations
Adjusted EBITDA for Q4 missed analyst expectations
Company expects 2026 revenue growth of 15%-25% yr/yr, supported by drone segment backlog
Outlook
AIRO expects full-year 2026 revenue growth between 15% and 25% year over year
Company expects about $150 mln backlog to convert to revenue in 2026
Growth in 2026 expected to be supported by increased drone deliveries and expanded manufacturing
Result Drivers
DRONE DEMAND - Co said Q4 revenue growth was driven by continued demand for drone systems and deliveries incorporating upgraded capabilities for the RQ-35 Heidrun platform
MARGIN PRESSURE - Co attributed lower gross margin to product mix, delivery timing, integration of upgraded system capabilities, and continued investment in business development and team expansion
HIGHER OPERATING COSTS - Co said lower operating income reflected continued investment in engineering development, production scaling and public company infrastructure
Company press release: ID:nBw5ScWtka
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $48.3 mln | $52.2 mln (3 Analysts) |
Q4 Adjusted EBITDA | Miss | $8.9 mln | $13.37 mln (3 Analysts) |
Q4 Gross Margin |
| 61.4% |
|
Q4 EBITDA |
| $8.8 mln |
|
Q4 Gross Profit |
| $29.7 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for AIRO Group Holdings Inc is $20.00, about 133.4% above its March 30 closing price of $8.57
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