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Q2 2025 EARNINGS PRESENTATION AUGUST 14, 2025
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2 Disclaimer and Forward-Looking Statements Dr. Mariya Pylypiv | CFO • Expertise in multi-company mergers, IPOs, and public company financial reporting. • Background in corporate development, investment banking, and hedge funds. • Holds degrees in Accounting, International Economics, and a Ph.D. in Finance. Forward-Looking Statements This presentation and accompanying statements contain forward-looking statements that are subject to risks and uncertainties. All statements contained in this presentation and the accompanying oral commentary, other than statements of historical facts, are forward-looking statements. This presentation and accompanying statements contain forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical facts or relating to present facts or current conditions included in this presentation are forward-looking statements. Forward-looking statements give the Company’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “may,” “could,” “seek,” “guidance,” “predict,” “potential,” “likely,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “forecast,” “aim,” “objectives,” “target,” “outlook,” “guidance” or variations of these terms and similar expressions, or the negative of these terms or similar expressions in connection with the Company’s plans, strategies, objectives, targets and any discussion of the timing or nature of future operating or financial performance or other events, although not all forward-looking statements contain these identifying words. These forward-looking statements may be included throughout this presentation, and include, but are not limited to, statements relating to estimates and forecasts of financial and performance metrics, the development, expected capabilities of the Jaunt cargo drone, AIRO's operational landscapes, demand for AIRO's systems and products, AIRO's plans for a manufacturing and engineering development facility, expectations concerning future products and developments, the market acceptance and opportunity of AIRO's products and services, and other statements that are not historical fact. By their nature, forward-looking statements are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, including those described in the section titled "Risk Factors" in AIRO's Quarterly Report on Form 10-Q for the period ended June 30, 2025, filed with the Securities and Exchange Commission (“SEC”) on August 13, 2025, as well as other filings AIRO may make with the SEC in the future. Forward-looking statements represent AIRO's management's beliefs and assumptions only as of the date such statements are made. AIRO undertakes no obligation to update any forward- looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law. Trademarks and Industry Information This presentation contains trademarks, service marks, trade names and copyrights of AIRO and other companies which are the property of their respective owners. Certain market, industry and competitive data included in this presentation were obtained from our own internal estimates and research, as well as from publicly available information, reports of governmental agencies and academic and industry research, publications and surveys conducted by third parties. In some cases, we do not expressly refer to the sources from which this data is derived. All of the market and industry data used in this prospectus is inherently subject to uncertainties and involve a number of assumptions and limitations. Such data and the industry in which we operate are subject to a high degree of uncertainty and risk due to a variety of factors, which could cause results to differ materially from those expressed in the estimates made by the independent parties and by us. Non-GAAP Information This presentation includes certain financial information that is not presented in accordance with generally accepted accounting principles in the United States ("GAAP"), including EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. These non-GAAP financial measures are intended as supplemental measures of the Company's performance that are not required by, or presented in accordance with GAAP, and should not be considered in isolation. These non-GAAP financial measures should not be considered as alternatives to performance measures derived in accordance with GAAP. The Company's presentation of these non-GAAP financial measures should not be construed to imply that the Company's future results will be unaffected by items that are excluded from these metrics. You should be aware that the Company's presentation of these and other non-GAAP financial measures in this presentation may not be comparable to similarly-titled measures used by other companies. We define (1) EBITDA as net loss before interest expense, income tax expense or provision, depreciation and amortization, (2) Adjusted EBITDA as net loss before interest expense, income tax expense or provision, depreciation and amortization, stock-based compensation, change in fair value of derivative liabilities, loss on extinguishment of debt, contingent consideration fair value adjustments and impairments, and (3) Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and present ed in accordance with GAAP. In this presentation, AIRO presents forward-looking non-GAAP measures, such as Adjusted EBITDA on a segment basis. AIRO does not provide such outlook on a GAAP basis because changes in the items that AIRO excludes from GAAP to calculate such measures can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of AIRO's routine operating activities. Additionally, management does not forecast many of the excluded items for internal use and therefore cannot create or rely on outlook done on a GAAP basis.
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3 I. Company Overview
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4 $17.1 $43.3 $86.9 $99.8 ($14.7) $4.5 $33.7 $34.9 2022 2023 2024 LTM (as of June 30, 2025) AIRO Mission Statement (1) Grand View Research. (2) Fortune Business Insights. (3) Morgan Stanley. (4) Based on combined operating experience of executive management and division leaders. AIRO Utilizes Differentiated Technologies to Effectively Address High Growth Markets Across Aerospace and Defense Drones Avionics Electric Air MobilityTraining Four Complementary Segments Strong Historical Financial Performance Significant Cross-Platform Synergies ($ in millions) 2022 – 2024 CAGR: +126% CAGR Technologically Differentiated Platform • Growth-oriented air mobility, autonomy and aerospace platform • Differentiated technologies and capabilities dynamically address high growth markets across the aerospace and defense ecosystem • Platform is split into the following four segments: ‒ Drones: Unmanned aerial vehicles and systems (“UAV” / “UAS”) as well as services used for military and commercial applications ‒ Avionics: Mission-critical electronic displays and systems ‒ Training: Military and commercial pilot training; recipient of DoD IDIQ contracts valued at $5.7 billion ‒ Electric Air Mobility: Cargo and urban transport systems, with an initial focus on targeting cargo commercialization • Targeting a combined aerospace and defense TAM of ~$315 billion by 2030, with a composite 2024-2030 CAGR of 14.8%(1,2,3) • Well-diversified portfolio and international footprint supported by cross-segment operational and technological synergies as well as significant, high-profile partnerships 2021 Founding Year 200+ Years Combined Experience(4) 151 Full-Time Employees Revenue Adjusted EBITDA
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5 Electric Air Mobility • Shared platform technologies with Drones • Captive OE platform for Avionics • Flight pathway to train new pilots using eVTOL platform Training • Strengthen public and private market access for Drones • Provide R&D testbed for new Avionics solutions • Introduce eVTOL flight training programs Avionics • GPS / GNSS sensors, radios and other systems for Drones • Retrofit and maintenance for Training fleet • Avionics components for Jaunt and other eVTOL operators Interconnected Platform with Cross-Platform Benefits Drones • Testbed for military and commercial drone product R&D • Expands Training scope to include drone services • EAM supply chain overlap provides economics of scale
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6 Well-Diversified Set of Business Segments Drones Avionics Training Electric Air Mobility Drone Systems & Services • Military, commercial and dual-use systems • GPS-denied technology • Fire-and-forget capability • AI-enabled and fully autonomous Electronic Aircraft Systems • Navigation • Communications • Collision avoidance • Flight controls and systems monitoring • Radar / electro-optical Military & Commercial Training • Close air support • Adversary air • Battlefield targeting and engagement • Commercial and military pilot training • Fixed-wing, rotorcraft, drone, and electric vertical take-off and landing (“eVTOL”) Innovative Electric Aircraft • Next-generation eVTOL aircraft • Heavy cargo drone transport • Advanced military missions • Fastest certification path • Proven patented technology Key Differentiators Innovative Technologies Strong Addressable Market Trends Green Technology BaseCross Platform Economies of Scale Estimated TAM(1) Estimated TAM(1) Estimated TAM(1)(2) Estimated TAM(3) ~$163B Drone Market (2030) ~14.4% 2024 – 2030 CAGR ~$85B Avionics Market (2030) ~9.7% 2024 – 2030 CAGR ~$24B Training Market (2030) ~6.4% 2024 – 2030 CAGR ~$43B eVTOL Market (2030)(3) NM 2024 – 2030 CAGR Brands BrandsBrands Brands (1) Grand View Research. (2) Fortune Business Insights. (3) Morgan Stanley.
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7 II. Q2 2025 Business & Financial Highlights
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8 Q2 2025 Business Highlights U.S. Manufacturing Expansion New Training Contracts New Middle-Mile Cargo Drone • Announced plans to establish a new U.S. manufacturing and engineering facility to support increased demand for drones • Facility will enhance production capacity, foster innovation in autonomous unmanned systems • AS9100 aerospace quality standards to support both defense and commercial markets • Concluded 90-day training mission for Naval Special Warfare and launched new operations under multi-year IDIQ contracts ‒ Supported JTAC programs with ISR aircraft, CAS operations and live-fire simulations • Completed $30+ million in contract awards tied to Naval Special Warfare and expanded support for international training exercises • Unveiled next-generation cargo drone capable of transporting 250 - 500lbs over 200 miles • Platform targets middle-mile logistics applications with enhanced performance and safety • Expanded operations into Quebec’s YMX Innovation Zone, accelerating testing, certification and development of electric air mobility solutions Strong Momentum Across Business Segments
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9 NATO Planning to Significantly Increase Defense Spending Dr. Mariya Pylypiv | CFO • Expertise in multi-company mergers, IPOs, and public company financial reporting. • Background in corporate development, investment banking, and hedge funds. • Holds degrees in Accounting, International Economics, and a Ph.D. in Finance. Significant Growth Opportunities For AIRO With Increased NATO Defense Spending Today Tomorrow • NATO countries currently commit at least 2% of their GDP to defense spending, which was a target set more than a decade ago to ensure continued military readiness ‒ 23 of 32 NATO countries meet this commitment today ‒ 20% of defense spending devoted to new equipment • Europe and Canada have steadily increased their investments, which totaled more than $430 billion in 2024 • In December 2024, NATO Secretary General, Mark Rutte, called on Allies to “shift to a wartime mindset and turbo charge our defense production and defense spending” • NATO has signaled that it will increase its defense spending benchmark from its current 2% of GDP target ‒ Increased to 3.5% of GDP after June 2025 summit ‒ Further increases could be “considerably more than 3%” • NATO Secretary General, Mark Rutte, has acknowledged the “goal of 2%, set a decade ago, will not be enough to meet the challenges of tomorrow” • U.S. has demanded its allies to commit at least 5% of GDP to defense spending, with Estonia and Lithuania already agreeing to do so Source: NATO.
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10 Preparing For U.S. Market Entry U.S. Market Entry Represents a Significant Opportunity for Drones Extensive Government Relationships ✓ Key contacts within the U.S. government ✓ Strong relationships with regulatory agencies ✓ Membership on key government committees ✓ Deep knowledge of regulatory processes ✓ Previous military leadership positions ✓ Top secret clearance Key Milestones Blue UAS Framework Foundry Process On-Ramp Blue UAS Cleared List I. II. III. IV. Completed In-Process In-Process Pending U.S. Market Expansion Plan • In process of manufacturing the RQ-35 Heidrun in the U.S. to obtain Blue UAS certification. ‒ Demonstrated the RQ-35 to U.S. forces overseas • Key requirement is that at least 51% of the vehicle must be manufactured in the U.S. ‒ Manufactured some prototypes in the U.S. already ‒ Mirroring same process from Denmark facility • Strong relationships with key decisionmakers across the U.S. government and regulatory agencies expected to streamline the certification process ‒ ~6-month timeline to achieve Blue UAS certification
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11 I. Complete Blue UAS certification and expand U.S. drone production Key Priorities for H2-2025 Key Priorities For H2-2025 II. Convert bookings in progress to revenue with continued program delivery III. Advance strategic partnerships, particularly in Training and Electric Air Mobility IV. Maintain disciplined investment across R&D, manufacturing and certification V. Deliver on the promise of our public listing with consistent execution and transparency
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12 Q2 2025 Financial Results Three Months Ended Period Over Period Change Commentary ($ in M) Q2-25 Q2-24 ($) (%) Revenue $24.6 $9.8 +14.8 +151.0% Increase largely driven by strong sales in Drones, with continued success of market entry strategies that target NATO member countries Gross Profit $15.0 $5.8 +9.3 +160.3% Gross margin improvement driven by ~31% increase in Training margin due to the higher profitability of the ground target vehicles contract and ~7% increase in Avionics margin due to favorable operating variances Partially offset by a ~9% decrease in Drones margin, primarily reflecting product discounts and the mix of products sold during the period Gross Profit Margin 61.2% 59.0% +219 bps Net Income $5.9 ($5.6) +$11.5 +204.8% Benefited from gain on the extinguishment of debt and favorable fair value adjustments to contingent liabilities EBITDA $18.9 ($1.1) +$20.0 +1,822.1% Meaningful progress toward profitability despite ongoing investment in technology development and platform expansion Adjusted EBITDA $4.7 $0.6 +4.1 +710.0% Adjusted EBITDA Margin 19.1% 5.9% +1,321+ bps
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13 9.4 6.9 20.9 37.4 8.5 22.0 3.0 2.3 2.0 1.4 2.2 1.5 1.3 0.6 0.7 1.0 1.1 1.1 $13.7 $9.8 $23.7 $39.7 $11.8 $24.6 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Revenue Mix by Segment Quarterly Revenue by Segment Drones Avionics Training • Strong start for H1-25, driven by continued strength in Drones and Training ‒ Increased shipments from NATO countries ‒ Special government ground target vehicle training contract • Softer Avionics sales due to strategic decision to delay further investments, while prioritizing resources for U.S. drone production ‒ Eventually will focus on the development and commercialization of higher-margin products for general aviation and multi- engine aircraft markets • Immediate opportunities to grow Training revenues by acquiring additional aircraft to conduct new programs • Positive momentum going into H2-25 as global defense spending continues to increase, particularly for drones and drone-related technologies Key Highlights
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14 Current Liquidity Cash & Cash Equivalents Cash & Cash Equivalents $8.1 $5.1 $8.8 $20.7 $13.5 $40.3 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Strong cash position and balance sheet following the company’s IPO in June 2025
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15 Strong Revenue Visibility Across Core Businesses Drones Training Backlog / Contract $200M+ Bookings in Process(1) $1.6B+ in Available CAS IDIQ Contracts(2) Visibility 12-18 Months 3-6 Months Structure Commercial Agreements Fixed Price Contracts Volatility Commentary • Strong relationships with key officials and decisionmakers around the world • Demonstrated capabilities with U.S. forces overseas, establishing credibility • Growing interest and significant whitespace for drones and drone services • One of seven vendors chosen by the U.S. government as part of a “closed group” • Regular sub-contracting for other vendors’ close air support task orders • Top secret clearance provides access to unique bidding opportunities Majority of revenues are supported by a robust backlog and contracts underpinned by growing demand and government spending. (1) Represents backlog for the RQ-35 Heidrun to be delivered over 2025 and 2026, which is spread amongst several NATO countries. (2) CAS refers to close air support.
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QUESTIONS & ANSWERS
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17 III. Appendix
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18 Q2 2025 Quarter-to-Date Performance Three Months Ended Period Over Period Change ($ in M) June 30, 2025 June 30, 2024 ($) (%) Revenue 24.6 9.8 14.8 151.0% Cost of Revenue 9.5 4.0 5.5 137.6% Gross Profit 15.0 5.8 9.3 160.3% Research and Development 4.1 3.2 0.9 29.8% Sales and Marketing 1.8 1.4 0.3 24.8% General and Administrative 28.9 3.9 25.0 640.5% Operating Profit (Loss) (19.7) (2.7) (17.0) (631.1%) Interest Expense, Net (8.0) (1.0) (7.1) (739.6%) Gain (Loss) on Extinguishment of Debt 15.6 -- 15.6 NM Other Income (Expense), Net 20.1 (1.5) 21.6 NM Income Before Tax 7.9 (5.2) 13.1 253.6% Income Tax Expense (2.1) (0.4) (1.6) (368.6%) Net Income (Loss) $5.9 ($5.6) $11.5 204.8% % Net Income (Loss) Margin 23.9% (57.3%) Note: NM denotes non-meaningful.
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19 Q2 2025 Year-to-Date Performance Six Months Ended Period Over Period Change ($ in M) June 30, 2025 June 30, 2024 ($) (%) Revenue 36.3 23.5 12.8 54.5% Cost of Revenue 14.4 9.3 5.1 55.3% Gross Profit 22.0 14.3 7.7 54.0% Research and Development 7.8 6.3 1.5 23.0% Sales and Marketing 3.2 2.7 0.5 20.0% General and Administrative 33.8 8.4 25.3 300.2% Operating Profit (Loss) (22.8) (3.2) (19.6) (621.3%) Interest Expense, Net (9.3) (1.2) (8.0) (646.9%) Gain (Loss) on Extinguishment of Debt 15.6 -- 15.6 NM Other Income (Expense), Net 22.7 (1.8) 24.5 NM Income Before Tax 6.2 (6.2) 12.4 201.0% Income Tax Expense (2.3) (1.4) (0.9) (64.0%) Net Income (Loss) $3.9 ($7.6) $11.5 151.2% % Net Income (Loss) Margin 10.7% (32.4%) Note: NM denotes non-meaningful.
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20 Adjusted EBITDA Reconciliation Three Months Ended Six Months Ended ($ in M) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net (Loss) / Income 5.9 (5.6) 3.9 (7.6) Depreciation & Amortization 3.0 3.1 6.1 6.3 Income Tax Expense 2.1 0.4 2.3 1.4 Interest Expense, Net 8.0 1.0 9.3 1.2 EBITDA 18.9 (1.1) 21.6 1.4 Gain on Extinguishment of Debt (15.6) -- (15.6) -- Stock-Based Compensation 18.6 0.2 18.8 0.5 Contingent Consideration Fair Value Adjustments (17.5) 1.5 (20.3) 1.7 Warrant Fair Value Adjustments (1.8) -- (1.8) -- IPO Contingencies(1) 2.1 -- 2.1 -- Adjusted EBITDA $4.7 $0.6 $4.8 $3.6 % Adjusted EBITDA Margin 19.1% 5.9% 13.2% 15.2% (1) IPO contingencies are made up of $1.2 million related to financial advisory services, $0.8 million related to legal settleme nts, $0.5 million legal accrual, $0.3 million bonus payments, $0.6 million Aspen contingent debt, $0.1 million cash portion of the Aspen carve-out, net of a $1.4 million gain on deferred compensation.