Overview

• US aerospace and defense firm's Q1 revenue fell 25% yr/yr, missing analyst expectations

• Adjusted EBITDA loss missed analyst estimates

• Company reiterates full-year 2026 revenue growth guidance of 15% to 25%

Outlook

• AIRO reiterates full-year 2026 revenue growth guidance of 15% to 25% year over year

• Company introduces 2026 Adjusted EBITDA guidance in negative mid- to high-teens dollar range

• Company expects majority of $150 mln drone backlog to convert to revenue over next 12 months

Result Drivers

• SEASONALITY AND SHIPMENT TIMING - Co said lower Q1 revenue reflected normal seasonality and timing of customer shipments

• PRODUCT MIX - Gross margin decline was driven by a greater contribution from lower-margin upgrade programs versus full system deliveries

• HIGHER OPERATING COSTS - Operating loss increased due to lower revenue, higher cost of sales, and continued investment in engineering, production scaling, and public company infrastructure after IPO

Company press release: ID:nBw3Dnfkza

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$8.9 mln	$16.60 mln (3 Analysts)
Q1 Net Income		-$15.5 mln
Q1 Adjusted EBITDA	Miss	-$12.8 mln	-$3.59 mln (3 Analysts)
Q1 Gross Margin		26.6%
Q1 EBITDA		-$14.3 mln
Q1 Gross Profit		$2.4 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "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 $19.00, about 142.7% above its May 13 closing price of $7.83

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