AIRO 2026 年第二季法說會：營收大增 76%，無人機在手訂單達 1.63 億美元

AIRO 隨著無人機交付量增加，公布 2026 財年第二季營收與毛利率表現強勁。管理層重申全年成長展望，同時警告交付時程與外匯將影響下半年業績。

關鍵要點

• 在無人機業務帶動下，2026 財年第二季營收年增近 76% 至 4,320 萬美元，但部分增幅被航空電子與培訓業務的軟弱表現所抵銷。
• 毛利率自去年同期的 61% 提升至 64%，反映出產品組合朝向無人機轉移。
• 營業利益改善至 170 萬美元，相較於 2025 財年第二季的營業虧損 1,970 萬美元轉虧為盈。調整後 EBITDA 自 470 萬美元增至 680 萬美元。
• 無人機在手訂單季增約 9% 至約 1.63 億美元。該訂單全數為國際訂單，主要集中於 RQ-35，尚不包含美國地區的在手訂單。
• 管理層重申 2026 財年全年營收成長 15% 至 25% 的財測指引，儘管預期下半年將面臨數百萬美元的新增外匯壓力。
• RQ-35 已獲得 Blue UAS 認證，而 RQ-70 仍定於 2027 年 1 月開始量產。JC250 與 JX250 仍按計畫預計於 2026 年晚些時候進行首飛。

重要財務數據

業務與營運表現

無人機系統

無人機交付是第二季營收的主要推動力量。約 1.63 億美元的在手訂單全數來自國際訂單，且主要與 RQ-35 相關，RQ-70 僅佔一小部分。管理層預計大部分在手訂單將在 12 個月內轉化為營收。

RQ-35 獲得了 Blue UAS 認證，使其符合《國防授權法案》(NDAA) 要求下的美國政府與國防採購資格。管理層表示公司已回應多項美國報價需求，但美國的潛在商機尚未納入在手訂單中。

AIRO 還推出了 RQ-70 遠程 ISR（情報、監視與偵察）平台。該系統設計續航時間長達 8 小時，航程達 100 公里，並可在無 GPS 訊號的環境中運作。管理層重申預計於 2027 年 1 月開始量產，並表示早期國防客戶的興趣十分強烈。

JC250 與 JX250 研發

JC250 貨運無人機與 JX250 ISR 機型仍按計畫預計於 2026 年晚些時候進行首飛。由於平台共用基礎、供應商談判、平台協同效應與研發執行力，公司特定研發成本比內部預期低了低雙位數百分比。

管理層表示，這些無人貨運與 ISR 機型的研發成本大幅低於公司先前考慮的載人平台。

航電與培訓

航電業務營收較上季基本持平，產品需求穩定。AIRO 已將其航電業務與正在擴展的美國無人機業務整合至鳳凰城，並預期營運與供應鏈協同效應將在未來幾個季度顯現。

培訓業務表現仍低於預期。管理層指出，目前美國政府的工作任務指派與 AIRO 的能力對接有限，且該部門具備資本密集型結構。公司正在評估策略性替代方案，並預計於年底前決定該部門的發展方向。

管理層指引

• AIRO 維持其 2026 財年全年營收年增 15% 至 25% 的預測。
• 在重大無人機交付訂單由第三季提前至第二季後，上半年營收約佔管理層目前全年預期的 50%。
• 管理層預計下半年營收將與上半年持平或略為高出。
• 預計第三季營收將較第二季下滑，隨後第四季表現將轉強。管理層預期第四季營收將略高於第二季。
• 與先前假設相比，新增的外匯逆風預計將使下半年營收減少數百萬美元。此影響已包含在維持的財測指引中。
• 全年毛利率預計較 2025 財年略有收窄，並大致維持在 2026 財年上半年的水準。
• 全年調整後 EBITDA 預計仍為負數，虧損金額落在 1,500 萬至 1,900 萬美元的中高區間，季度表現將大致跟隨營收節奏。
• 管理層預期在 2027 年及以後轉為正向自由現金流。

風險與觀察事項

AIRO 的單季業績對大型無人機的交付時程依然敏感。重大出貨提前至第二季，預計將導致第三季營收季減。

由於公司的國際業務曝險，外匯是另一個近期限制因素。管理層目前預計下半年受到的營收影響將大於先前假設。

培訓部門依然屬於資本密集型且表現低於預期，從而引發策略檢討。管理層亦提及涉及烏克蘭政府的許可問題影響了與 Nord 及 Bullitt 合資企業相關的進展，同時強調公司的成長並不依賴於任何單一合作夥伴關係。

AIRO 繼續投資於製造產能與新產品。雖然 JC250 與 JX250 的研發支出低於預算，管理層仍預計全年調整後 EBITDA 將維持大幅負數。

分析師問答焦點

分析師關注焦點為在手訂單結構、美國訂單商機、RQ-70 需求、研發支出與自由現金流。管理層澄清，目前 1.63 億美元的在手訂單不包含美國訂單。Blue UAS 認證被視為將美國潛在商機轉化為確定訂單與在手訂單的關鍵一步。

在流動性方面，管理層將 6 月 30 日現金餘額相對 7 月 31 日偏低的原因，主要歸因於季度末的交付與應收帳款時程。隨後的收款將初步現金推升至約 5,600 萬美元。

管理層表示培訓業務的策略性替代方案仍處於評估階段，並將無人機與航電列為公司的核心資本配置優先項目。AIRO 也在評估合作夥伴關係與收購案，以在減少單季營收波動的同時，擴展其無人機、航電與電子產品組合。

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完整財報電話會議逐字稿

管理層陳述

Operator

Thank you for standing by. My name is Jonathan, and I will be your conference moderator today. At this time, I would like to welcome everyone to the Aero Q2 2026 earnings call. [Operator Instructions]

I would now like to turn the call over to Jack Senft, Investor Relations at Aero. Please go ahead.

Unknown Executive

Thank you, Operator, and good morning, everyone. Welcome to the Aero Group Holdings, Incorporated second quarter 2026 earnings call. We appreciate you joining us today and look forward to sharing an update on our progress and performance. With me on the call are Dr. Chiranjeev Kathuria, our Executive Chairman, Captain Joseph Burns, our Chief Executive Officer, and Dr. Mariya Pylypiv, our Chief Financial Officer. Today's call will include forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to Aero's 2026 outlook.

Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. Forward-looking statements represent management's beliefs and assumptions only as of the date made. Information on factors that could affect the company's financial results is included in the company's most recent annual report on Form 10-K and other filings with the SEC from time to time. In addition to our prepared remarks, our earnings press release, SEC filings, and a replay of today's call can be found on our Investor Relations website at investor.theaerogroup.com. We have also posted our earnings presentation on the Investor Relations section of our website.

In addition, during today's call, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP financial measures and the discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalents is available in our earnings release. Additionally, we plan to discuss drone segment backlog, a definition of which can be found in our earnings release. We will also discuss our cash balance as of July 31, 2026, which is a preliminary estimate based on information available to us as of the date of this presentation. Additional information on this metric can be found in the earnings presentation on our Investor Relations website.

With that, I will turn it over to our Executive Chairman, Dr. Chiranjeev Kathuria.

Chirinjeev Kathuria

Thanks, Jack, and thank you all for joining us today. Aero delivered a strong second quarter that was marked by revenue outperformance against expectations driven by solid execution within our drone segment. Gross margins improved to 64%, leading to a small operating profit for the quarter, a big improvement from the loss we saw in the same period last year. Looking ahead, and as Mariya will discuss in her section, we are reiterating full-year revenue growth guidance of 15% to 25%. She will detail some additional thoughts to think through the rest of the year. On top of this, total drone backlog grew roughly 9% from last quarter to approximately $163 million.

On the strategic front, it was also a busy quarter. The RQ-35 drone achieved Blue UAS certification, which opens up meaningful new opportunities in U.S. defense procurement. We also unveiled our new RQ-70 long-range ISR platform. Development continues on the JC250 and the JX250 cargo and ISR drone variants, and costs there are coming in below expectations, with the first flight still on track for later this year. We remain squarely focused on the unmanned drone market. Second quarter was a solid quarter of execution, and we expect that momentum to continue as we scale manufacturing, diversify our revenue base, and stay disciplined on cost, all while continuing to invest in Aero's next phase of growth.

With that, let me turn it over to Joe to discuss our strategy and the operational highlights.

Joseph Burns

Thank you, Chiranjeev, and thank you all for joining us on today's earnings call. I am happy to report second quarter results that exceeded expectations, finishing out a strong first half of the year. Our second quarter results were marked by on-time drone deliveries plus multiple announcements. These recent developments highlight our execution on strategy, but we are not done here. While second quarter top-line results mark sequential growth versus our 1Q performance, this demonstrates the variable nature of our business. Still, second quarter results topped expectations. We are reiterating our full-year guidance ranges we previously provided. Mariya will walk through the financial details later in the call.

Now let me provide some updates on our portfolio and strategic positioning at Aero. We have a solid, growing portfolio of products and services. We remain focused on the overall drone market, whether it be through new product developments or through partnerships and inorganic opportunities. We are actively working to reduce quarterly variability by expanding our international and domestic revenue base. One such milestone on our product side, and one that I'm especially pleased to highlight, is that our RQ-35 drone is now officially Blue UAS certified. With this approval, the RQ-35 is recognized by the Department of Defense as a secure, compliant unmanned aircraft system, eligible for government and defense procurement under NDAA requirements.

As most of you know, Blue UAS streamlines access to the DoD and federal procurement channels, accelerating our ability to compete for and secure U.S. defense contracts, which we expect will support Aero's long-term revenue growth across domestic and international markets. We believe the Blue UAS milestone is a testament to the RQ-35, from its embedded technology, use cases, and performance on the battlefield. The RQ-35 and now our recently unveiled RQ-70 continue to set our technology apart from the rest of the pack. The RQ-35 is battle-tested, having been deployed in the Ukraine conflict, and the platform is extremely quiet, hand-launched, and purpose-built for ISR missions. It has demonstrated real resilience, even against electronic warfare and in GPS and GNSS-denied environments.

With up to 50 kilometers of range and 150 minutes of flight time, it delivers extended time on target, quick frontline serviceability with a smart battery for reliable performance. The RQ-35 platform also offers onboard AI with edge computing, which enables real-time identification and classification of enemy assets and threats, while strengthening navigation, situational awareness, and mission execution. This drives faster, more informed decisions in the field. As a note, edge computing brings our flying servers closer to the battle, allowing us to significantly speed up and improve target recognition and decision speed, which reduces the already jammed bandwidth required by other competitor systems. Our goal is to embed AI across all of our product and service offerings at Aero.

The RQ-70 is our newest platform, built on years of RQ-35 battle data and leveraging our existing manufacturing and NDAA supply chain. We are already engaged with multiple defense customers on future deployment. It offers configuration flexibility between standard, long-range, and VTOL configurations and includes a modular design that lets it serve as a standalone ISR drone for NATO and allied customers. Our RQ-70 is built for up to 8 hours of endurance, 100 kilometers of range, and resilience in GPS-denied environments. We are reaffirming expected production start in January 2027. Capabilities such as these further set Aero apart with strong customer validation to date. We are building on that momentum with new initiatives and will continue to provide updates in the quarters ahead.

On the product side, we're making great progress developing our cargo and ISR drone variants, the JC250 and JX250. We have been strategically evaluating and selecting suppliers for the vehicle, and we are reaffirming our expectation for the first flight later this year. I am also happy to report that Aero-specific costs for development are running below our internal expectations by a low double-digit percent. There are a few driving factors. First, because the cargo and ISR variants share a common foundation, we are developing them at a fraction of the cost of their passenger counterpart. Second, we have made real progress in supply chain negotiations, which is lowering our input costs. Third, we are realizing synergies across the platform faster than we had modeled. And finally, our R&D team has been executing efficiently, which is keeping development costs disciplined. Taken together, these factors are giving us confidence in the cost trajectory of this program.

While still in the early innings, all the developments that I mentioned represent our efforts in diversifying our product portfolio and stabilizing revenue variability over time. On the avionics and electronics side of our portfolio, Aero delivered largely flat revenue quarter-over-quarter as demand for our avionics products remained stable and consistent with the prior quarter. Despite the static growth year-to-date, we are actively advancing next-generation sensor and navigation solutions, which were on display at the EAA AirVenture Oshkosh in late July. We received solid feedback at the trade show with customers highlighting our product reliability and functionality. Avionics continues to play a critical and strategic role within our broader company profile. With our avionics and ramping U.S. drone operations now consolidated under one roof in Phoenix, we expect synergies here to begin bearing fruit in the coming quarters.

These dynamics are part of what reinforces Aero's long-term competitive advantage. Over time, we expect to bring more avionics systems in-house across our unmanned platforms, streamlining operations, reducing supply chain complexity, and ultimately strengthening our gross margin profile. Lastly, on the services side, we are continuing to evaluate strategic alternatives for training, and we expect to have an update on that direction by the end of the year. We believe the training segment remains a valuable asset with a significant long-term opportunity, although the segment is capital-intensive and often requires meaningful ongoing investment. Recall, while underlying demand persists within this segment, performance here has been below expectations. This is driven by the fact that the task orders coming out of the U.S. government are not within the strengths of Aero.

We believe this narrative will shift over time, and we are positioning, investing, and strengthening our training asset to pursue upcoming long-term close air support training opportunities. That said, we are exploring all possible avenues for the business, but our focus remains on unmanned systems. Overall, we are encouraged by the momentum generated across our portfolio during the second quarter. From achieving Blue UAS certification for the RQ-35 and advancing customer engagement around our new RQ-70 platform to progressing development of our cargo and ISR drone variants and positioning our avionics business for future synergies, we continue to execute on our strategy of expanding capabilities, diversifying revenue streams, and embedding AI across our offerings. While there is still work ahead, we believe these milestones reinforce the strength of our technology and market position, and we look forward to building on this momentum in the quarters to come.

We remain disciplined on our capital initiatives. We continue to evaluate inorganic opportunities carefully, focusing on acquisitions that would be accretive in the near term and that strategically enhance our product portfolio, namely for drones, avionics, and electronics. We also see M&A as having the potential to play an important role in reducing Aero's quarterly revenue variability over time. As I have discussed in the past, our balance sheet gives us real flexibility to act when the right opportunity comes along, and selective M&A will continue to play a vital role in how we endeavor to maximize long-term shareholder value. With the multiple drone deliveries in 2Q, and given the timing of these drone deliveries at quarter end, our cash balance as of July 31, 2026, was approximately $56 million, significantly strengthening Aero's balance sheet.

In closing, the initiatives, discipline, and efforts we have employed to date bolster our strategy of delivering mission-ready ISR systems that can be produced, upgraded, and supported at scale. I'm also grateful for the colleagues beside me today and for every employee who makes this company what it is. Our leadership team brings extensive industry experience to the table, and as we continue to add key personnel, we are further strengthening our competitive position in the market. With that, I will turn it over to Mariya, who will walk you through the financial results in more detail. Mariya?

Mariya Pylypiv

Thank you, Joe, and good morning, everyone. For the second quarter of 2026, revenue was $43.2 million, compared to $24.6 million in the second quarter of 2025. This represents growth of nearly 76% year-over-year. Revenue for the quarter was ahead of expectations, driven by outperformance against expectations in our drone segment, partially offset by underperformance in avionics and training. Gross profit for the quarter was $27.7 million, representing a gross margin of 64%, compared to a gross profit of $15 million and gross margin of 61% versus the same period last year. The improvement in gross margins, both sequentially and year-over-year, was also driven by a product mix shift back towards drone products, consistent with expectations. Recall, our first quarter margins were impacted by upgrade revenue, negatively impacting margins.

Operating income for the quarter was $1.7 million versus negative $19.7 million in the second quarter of 2025. This year-over-year improvement is a result of higher revenue, improved gross margins, and IPO-related costs incurred in the prior year period. We remain disciplined on costs while continuing to invest selectively in the infrastructure needed to support our growth. Our second quarter net loss was $2 million versus a net income of $5.9 million in the second quarter 2025. Second quarter 2026 EBITDA was $5.1 million compared to $18.9 million in the prior year period. On an adjusted basis, EBITDA was $6.8 million, up from $4.7 million in the second quarter 2025.

As Joe mentioned, on the cost side for our JC250 and JX250 platform, I am happy to report that development costs are tracking below our internal expectations. The shared foundation between our cargo and ISR variants means we are developing them at a fraction of the cost of the passenger version, and we are realizing savings beyond our original projections by roughly a low double-digit percentage. We retain flexibility to adjust our spending pace up or down as conditions warrant. Right now, though, we believe the right path forward is deliberate, efficient investment to put the required infrastructure in place to support our next phase of growth.

Turning to cash flow and liquidity, as of June 30, 2026, we had $25.9 million in cash on the balance sheet, with $6.8 million in debt. Accounts receivables were higher than usual at quarter end, driven by the multiple drone deliveries late in the quarter. As of July 31, we had approximately $56 million of cash, primarily reflecting the subsequent collection of international drone receivables outstanding at quarter end. This strengthened our liquidity position and provides us with continued flexibility to execute against our strategic priorities. As of June 30, 2026, we had roughly $163 million in drone backlog. We expect the majority of this backlog to convert to revenue within the next 12 months. We will be updating our backlog to include U.S. opportunities and ongoing pursuits in the coming quarters. We expect this will meaningfully increase the total backlog as those orders are incorporated.

We define backlog as orders we reasonably expect to convert to revenue over the next 12 months. As this metric provides visibility into near-term demand, our broader pipeline continues to expand, underscoring the long-term demand trends we have discussed throughout today's call. Based on our current visibility, we are reiterating our full-year revenue growth guidance of 15% to 25% year-over-year. Let me provide some additional context on the expected cadence for the remainder of the year. First, 1 material drone delivery originally expected in the third quarter was completed in the second quarter. As a result, first half revenue represented approximately 50% of our current full-year expectations. Second, reflecting that pull forward, we currently expect second half revenue to be in line with, or modestly above, first half revenue. Within the second half, we expect third quarter revenue to decline sequentially from the second quarter, followed by a stronger fourth quarter. We currently expect fourth quarter revenue to be modestly above the second quarter.

Third, given the international nature of our business, foreign exchange remains a factor in our outlook. We now anticipate greater FX headwinds in the second half, with an incremental revenue impact of a few million dollars compared with our prior expectations. We have incorporated that impact into our outlook and remain confident in our full-year guidance range. We continue to expect modest gross margin compression versus 2025, with full-year gross margin broadly in line with first half levels.

Turning to profitability, we continue to expect full-year 2026 adjusted EBITDA in the negative mid to high teens millions, with the quarterly cadence expected to broadly follow revenue. In closing, our strategy remains focused on 3 priorities: diversifying our revenue base, scaling manufacturing, and accelerating new product introductions. As those products ramp up and make up a larger share of revenue, we expect that to reduce quarterly volatility and strengthen backlog growth over time. Specifically, with the introduction of the RQ-70, the first delivery of the Zentra camera suite, and the JC250 and JX250 coming online late next year, we expect to begin seeing the benefits of that revenue stability next year, with continued improvements in the quarters and years to follow.

That progress is exactly why fiscal year '26 is a year of accelerated investment for us. As I have said before, we are still early in our growth phase and we intend to invest accordingly, while staying disciplined on costs and preserving flexibility to adjust our cost structure as needed. That balance supports our confidence in Aero's long-term growth trajectory. With that, Operator, we're ready for questions.

Operator

[Operator Instructions] Our first question is from the line of Colin Canfield from Cantor Fitzgerald. Your line is now open. Please go ahead.

分析師問答

Colin Canfield

Maybe if we could start on drone order trends to parse out the mix of U.S. and international drone orders for the RQ-35, discuss the milestones that you need to see to essentially increase the backlog. The comment you made on materially increasing backlog, basically, what milestones does it take to recognize that backlog increase? And then if you could also talk about early customer interest for the RQ-70.

Mariya Pylypiv

Hi Colin, thank you for your question. So I'll start. Our $163 million backlog represents international drone backlog and does not currently include any U.S. backlog. We expect that the majority of that backlog will convert to revenue over the next 12 months. So naturally, the portion of it extends into 2027. In terms of the U.S., we have responded to a number of RFQs and continue to see a growing pipeline of opportunities. And as those opportunities convert into orders, and we expect them to be able to convert into backlog, it will provide additional visibility for U.S. backlog, which will incrementally add to the $163 million backlog we are currently reporting today. As far as additional products being included, it's mostly composed out of the RQ-35. There's a very small percentage of the RQ-70 being added to this number right now.

Joseph Burns

And if I, this is Joe, good morning, Colin, if I could follow on with that. Some of the milestones, obviously key milestones for us were the Blue UAS certification, which will allow us into the U.S. market. So that was a big one. The RQ-70 announcement and launch of that product are also a big milestone to enhance our expansion of our margin profile. You also mentioned or asked a question about early customer interest in the RQ-70. It's been very strong because it does fill a gap in sort of that high-end ISR market, that long duration flight, ease of operations, and low costs. So we feel very, very strong about the RQ-70 filling in the interest category as well.

Colin Canfield

Maybe if we could talk about free cash flow. The foundational building blocks and kind of the level of investment related to the defense transport platform. Just kind of walk through how you think about the investment on that program and flexing down, and perhaps maybe kind of how you think about that relative to the company's ability to generate free cash flow. Thank you.

Mariya Pylypiv

Thank you, Colin. So I'll start and then I'll let Joe add anything I missed. So in terms of free cash flow, we are very comfortable right now with our liquidity position, and it's closely tracking our internal expectations. The biggest factor for the quarter was timing as we were building inventory to support deliveries. So those deliveries occurred at the end of the quarter, a significant portion of receivables converted into cash. And as I mentioned earlier, as of July 31, our cash and cash equivalents were approximately $56 million.

In terms of investments for the air mobility, our costs have been reduced, which Aero is very comfortable with. Right now they're running in the low double digits below initial expectations. And while we have not provided the size of the investments, we are still tracking on time. And overall, because we shifted our focus on ISR and cargo drones, it significantly reduced our expected development costs compared to the passenger platform, which obviously provides significant upside for our liquidity. And if we think about moving forward, free cash flow, we anticipate there should be a shift into positive cash flow in 2027 and beyond.

Joseph Burns

That's great. Thank you. And to expand on the JX250 and the JC250, our ISR and cargo variants of that large cargo transport, you know, we've talked about in the past about eVTOL. This is an eVTOL aircraft, but it's different than what we had previously discussed in the passenger realm. We don't carry passengers on this. It's basically a large cargo drone. Very long duration, hybrid drive can use conventional fuels. So we think there is a new and growing market for this type of transport if you think about sort of combat operations, the ability to resupply, get critical medical information to and from, etc. So for us, it's a real opportunity to jump into somewhat of a new market. You're starting to see that, obviously, in this industry as well.

Operator

Thank you. Your next question comes from the line of Andre Madrid from U.S. Bancorp BTIG. Your line is now open. Please go ahead.

Andre Madrid

I was wondering if you could provide us an update on where you're at with Nord and Bullitt, those JVs.

Joseph Burns

Sure. This is Joe. Good question, Andre. So as you probably know at this point, there are some significant order issues or significant issues with the Ukrainian government's permitting process. You know, in their current [indiscernible] government, there is [indiscernible] of aircraft coming into [indiscernible] transfers. We are still [indiscernible] and we're working [indiscernible] council over there and [indiscernible] these permits. But that said, the partnerships and JVs like these are really a compelling route for us. I want to make it clear that we're not dependent on any one of them for growth.

The partnership and JVs will expand our access to multiple markets and help accelerate our growth plans. We're currently evaluating additional partnerships as well in this particular market, and those specifically for drone dominance. So we're excited about other opportunities. It's really opened our eyes as to what's available, what the markets look like for us. And with the ability for our certification routes, we're excited about [indiscernible] in these things moving forward.

Andre Madrid

That's really helpful. And then maybe pivoting to training for a bit. I know you guys had mentioned last quarter your decision to pursue strategic alternatives or consider strategic alternatives there. Is there any update that you can provide as to maybe how that's tracking and when the decision might be made?

Joseph Burns

Sure, we're planning to have decisions by year-end. We're making a lot of discussions around it. As we mentioned before, we're actively evaluating a range of strategic options. And our intent in disclosing this is to be transparent with the market. Well, really our core focus right now is on drone and avionics operations. And we see limited synergies between the training segment and our core business, which is important while we're evaluating the long-term strategic fit. Training is expensive. We have made a significant investment so far, but we're still excited about the opportunities in this particular business. But as always, drones are our main focus, and that's where we want to look at focusing most of our capital.

Andre Madrid

Yes, that's really helpful, Joe. I appreciate it. I'll leave it there. Thanks.

Operator

Thank you. There are no further questions. We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect.