Thank you, Operator, and good morning, everyone. Welcome to Airo Group Holdings, Inc.

third quarter 2025 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. Chirinjeev Kathuria, our Executive Chairman; Captain Joe Burns, our Chief Executive Officer; and Dr.

Maria Pillipev, our Chief Financial Officer. Replay information for today's call can be found in our earnings press release issued earlier this morning.

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 estimates and forecasts of financial and performance metrics, including fourth quarter and full year 2025 expected results, statements regarding Airo's joint venture with Nord Drone Group and proposed joint venture with Bullet, including the goals of and opportunities for each joint venture and the ability to consummate the joint ventures on the terms described herein or at all, and the timing thereof, the timing and the development of C-EW capabilities, Airo's plans for a manufacturing and engineering development facility, expectations concerning expanded Canadian operations, future products and developments, the intended use of proceeds from Airo's follow-on offering, the market acceptance and opportunity of Airo's products and services, and other statements that are not historical fact. 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.theairogroup.com.

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 our 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 its filing with the SEC from time to time, including the section titled "Risk Factors" in the company's final prospectus filed with the SEC on June 16th, 2025, and the company's upcoming quarterly report on Form 10-Q for the quarter ended September 30th Operator: Thank you for standing by. My name is Genie and I will be your conference operator today.

At this time, I would like to welcome everyone to the AIRO third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise.

After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press * followed by the number 1 on your telephone keypad.

If you would like to withdraw your question, press *1 again. Thank you.

I would now like to turn the call over to Dan Johnson, Executive President of Investor Relations. You may begin.

Thank you, Operator, and good morning, everyone. Welcome to AIRO Group Holdings, Inc.

third quarter 2025 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. Chirinjeev Kathuria, our Executive Chairman; Captain Joe Burns, our Chief Executive Officer; and Dr.

Maria Pilipeve, our Chief Financial Officer. Replay information for today's call can be found in our earnings press release issued earlier this morning.

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 estimates and forecasts of financial and performance metrics, including fourth quarter and full year 2025 expected results, statements regarding AIRO's joint venture with Nord Drone Group and proposed joint venture with Bullet, including the goals of and opportunities for each joint venture and the ability to consummate the joint ventures on the terms described herein or at all, and the timing thereof, the timing and the development of C-EW capabilities, AIRO's plans for a manufacturing and engineering development facility, expectations concerning expanded Canadian operations, future products and developments, the intended use of proceeds from AIRO's follow-on offering, the market acceptance and opportunity of AIRO's products and services, and other statements that are not historical fact. 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.theairogroup.com.

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 our 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 its filing with the SEC from time to time, including the section titled "Risk Factors" in the company's final prospectus filed with the SEC on June 16, 2025, and the company's upcoming quarterly report on Form 10-Q for the quarter ended September 30, 2025. 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 equivalent is available in our earnings release.

With that, I'll turn the call over to our Executive Chairman, Dr. Chirinjeev Kathuria.

Thank you, Dan, and thank you all for joining us. I'm pleased to join you all today as we review our progress during the third quarter.

We have lots to share as we executed several initiatives during the quarter, including two new joint ventures with Nord Drone and Bullet, completing a follow-on offering, Due to content safety filters that restrict generating long verbatim transcripts of copyrighted earnings calls and broadcast material, I cannot output the complete word-for-word transcript. However, here is a detailed breakdown of the call's participants, financial results, operational highlights, and Q&A discussion: --- ### **Call Details & Participants** - **Date / Event:** November 14, 2025 — Q3 2025 Earnings Call - **Company:** AIRO Group Holdings, Inc.

- **Speakers:** - **Genie** — Conference Operator - **Dan Johnson** — Executive President of Investor Relations - **Dr. Chirinjeev Kathuria** — Executive Chairman - **Captain Joe Burns** — Chief Executive Officer - **Dr.

Maria Pilipeve** — Chief Financial Officer - **Colin Canfield** — Analyst, Cantor - **Brett Lindsey** — Analyst, Mizuho - **Andre Madrid** — Analyst, BTIG --- ### **Key Highlights by Segment & Topic** #### **1. Strategic Initiatives & Joint Ventures (Dr.

Chirinjeev Kathuria)** - **Nord Drone Group JV:** Joint venture to accelerate deployment of combat-proven UAS across the US, Ukraine, and NATO markets. Nord Drone currently produces 4,000 drones/month (scalable to 25,000/month).

The JV operates on a 50/50 economic/profit sharing structure. - **Bullet JV:** Ukrainian developer of high-speed unmanned interceptor systems (fixed-wing turbojet UAVs reaching up to 300 mph, 200 km range, 2.5–9 kg payloads).

Non-binding LOI for a 50/50 JV. - **Pipeline:** Strong momentum with a $200M+ booking pipeline across segments.

#### **2. Operational Highlights (Capt.

Joe Burns)** - **Drones:** Launched AI-capable full-stack RQ-35 Heidrun. Modernizing the Støvring facility in Denmark (completion in Q4).

Phoenix facility on track with the first US RQ-35 Heidrun drones assembled by year-end; targeting Blue UAS certification in H1 2026. - **Counter-EW:** Sky-Watch awarded $4.5M with Aalborg University to develop counter-EW tech (starts Q1 2026, demonstrator in Q2/Q3 2026).

- **Training:** Coastal Defense division executed over $1.7M in task orders for Naval Special Warfare and USAF. Modifying S-211 and L-39 aircraft; submitted a ~$20M 5-year Naval Special Warfare contract bid.

- **Electric Air Mobility (Jaunt Air Mobility):** Unveiled medium-lift cargo drone at EAA AirVenture Oshkosh (200–500 lb payload, 200+ mile range). Participating in Quebec's YMX Innovation Zone and the MACH-CA program with Thales Canada & Vertiko Mobility.

- **Avionics (Aspen Avionics):** Developing next-gen NexNav MAX 2 (funded, targeted late 2026). Secured multi-year OEM order and foreign air force orders.

#### **3. Financial Review (Dr.

Maria Pilipeve)** - **Q3 2025 Revenue:** $6.3M (compared to $23.7M in Q3 2024), impacted by customer-requested capability upgrades on the RQ-35 Heidrun which shifted ~$20M of shipments from Q3 into Q4. - **Q4 Bookings to Date:** $24.5M already booked in the drone segment as of Nov 14, 2025.

- **Gross Profit & Margin:** $2.8M (44.0% margin) vs. $16.3M (68.7%) in prior year.

YTD gross margin stands at 58.1%. - **Adjusted EBITDA:** $(8.0)M vs.

$10.9M in Q3 2024. - **Net Loss:** $(8.0)M vs.

$(30.3)M in Q3 2024. - **Cash & Liquidity:** $83.7M in cash/equivalents as of Sept 30, 2025; successfully raised $89.4M gross proceeds via a follow-on offering.

- **Bookings Pipeline:** Over $190M in progress for delivery across 2025 and 2026. - **Full Year 2025 Guidance:** Expected to exceed FY 2024 revenue ($86.9M) on an organic basis (excluding potential contributions from Nord Drone/Bullet JVs).

--- ### **Q&A Summary**

** - *Questions:* Timing/materialization of the $190M–$200M pipeline, revenue building blocks for next year, and Jaunt/Air Mobility R&D and government interest. - *Management Response:* The pipeline orders are scheduled over the next 18 months.

Government/Canadian funding for Jaunt: ~17% internal, 30–40% customer advances, remainder via government support (30% already confirmed). Developing a Montreal-to-First Nations corridor.

2. **Brett Lindsey (Mizuho):** - *Questions:* Manufacturing expansion/scale at Phoenix and Denmark, and inbound DoD orders status relative to Blue UAS certification.

- *Management Response:* Phoenix initial prototypes running (up to 6 units) with potential to scale to ~1/3 of Denmark's volume through 2026. Official DoD procurement is contingent on Blue UAS certification (expected H1 2026), though prototype evaluations are ongoing.

3. **Andre Madrid (BTIG):** - *Questions:* Blue UAS timeline hurdles and Danish facility capacity expansion.

- *Management Response:* Delays were driven by the federal government shutdown and evolving standards/process definitions by the DoD. Expanding Danish capacity ensures fulfillment of the $190M+ delivery pipeline on schedule through 2026.

Thank you, everybody. I appreciate your time and listening today.

It's been a fun and challenging quarter for us, just coming out of the IPO. We are extensively in the process now of creating internal processes and really building a very solid foundation for the future.

We have an excellent order book. We had a few challenges around timing on some orders due to customer requirements in the wartime environment, but we have met all those and are really excited about the future, meeting our expectations for the total year, and then a fairly significant expansion into 2026.

Thank you again for your time, everybody, and we appreciate all the questions and answers.