AIRO Group Q1 revenue falls more than expected, hurt by shipment timing

AIRO group

14/05/2026 11:38

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)