Al Root
Investors have a new defense technology startup to watch. The drone maker AIRO is now publicly traded.
The company completed an initial public offering on Thursday, selling 6 million shares at $10 each. Shares will begin to trade on Friday under the symbol AIRO. The company has roughly 26 million shares outstanding after the offering, giving it a market value of $260 million at the IPO price.
Sales in 2024 amounted to $ 87 million, double the amount in 2023. That means that at the IPO price, the shares are valued at about 3.3 times 2024 sales. Unmanned-defense-technology companies AeroVironment and Kratos Space & Security Solutions trade for about 12 times and six times 2024 sales, respectively.
Both are larger than AIRO: AeroVironment's sales in 2025 are expected to reach $1.1 billion. The company is also in the process of acquiring BlueHalo, which makes comparisons difficult. Kratos's sales in 2025 are expected to reach about $1.3 billion.
AIRO operates in four business segments: drones, avionics, training, and electric air mobility. Avionics refers to flight controls. Electric Air Mobility refers to eVTOL, or electric vertical takeoff and landing aircraft, a segment that has yet to generate sales.
Most of the revenue comes from the drone business. The company's AI-enabled Sky Watch drones are used for surveillance, but AIRO will use the IPO funds to acquire additional drone technologies.
Drones have been a growing focus of investors for months, partly because of the Ukraine-Russia war, which has become an incubator of drone technology. Low-cost drones have transformed battlefield surveillance and tactics, greatly increasing risks to infantry and equipment.
That focus isn't likely to fade soon, a good reason to follow developments at AIRO and its peers.
Write to Al Root at allen.root@dowjones.com
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June 13, 2025 10:36 ET (14:36 GMT)
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