AIRO to Expand U.S. Manufacturing Footprint to Accelerate Advanced Drone Innovation and Strengthen Global Defense Capabilities, Building on RQ-35 Heidrun Success

ALBUQUERQUE, N.M. & MONTREAL & STØVRING, Denmark & WASHINGTON--(BUSINESS WIRE)--AIRO (Nasdaq: AIRO), a global leader in advanced aerospace and defense technologies, today announced plans to expand its U.S. footprint with the addition of a new manufacturing and engineering development facility. This strategic move builds on the success of AIRO’s existing operations and is driven by the growing global demand for AIRO’s flagship product, the RQ-35 ISR Drone.

The RQ-35 ISR Drone has rapidly gained international recognition for its reliability, performance, and mission versatility across defense and security sectors. Known in military applications as the RQ-35 Heidrun, the system offers significant advantages over existing micro-ISR drones due to its combination of full autonomy, long flight endurance, and ease of operation. It has been rigorously tested and deployed in harsh electronic warfare and GPS-denied environments, including active conflict zones, where it has demonstrated exceptional resilience and effectiveness.

With hundreds of thousands of operational hours to date, the RQ-35 has proven to be a critical asset in intelligence, surveillance, and reconnaissance missions. Its robust supply chain and seamless integration with other battlespace systems make it a vital link between frontline intelligence gathering and real-time decision-making. These capabilities have made the RQ-35 an essential tool for modern military forces seeking reliable, scalable ISR solutions in dynamic and contested environments.

The planned U.S. facility will not only enable AIRO to scale production efficiently and compete for American-made defense and commercial opportunities — it will also serve as a hub for future innovation. To support new product development, AIRO is designing and engineering efficient, reliable, and low-carbon-emission unmanned aircraft systems for both commercial and military markets. This includes ongoing enhancements to the RQ-35 and the development of the next generation of fully autonomous mini drones.

“Like our current manufacturing facilities in the U.S. and Europe, which are AS9100-certified, our intent is for this new site to meet the same rigorous aerospace quality standards,” said Joe Burns, CEO of AIRO. “This commitment to quality not only strengthens our internal processes and systems, but more importantly, it allows our clients to receive consistent and reliable products. It’s a win-win that reinforces our role as a trusted partner in mission-critical projects.”

“The growth of our drone business has been formidable,” added Dr. Chirinjeev Kathuria, Executive Chairman of AIRO. “Fueled by the global acceptance and operational deployment of the RQ-35 by NATO countries, this segment has expanded rapidly. These systems are not only proving essential in active conflict zones but have the potential to be a cornerstone of homeland security strategies across allied nations. This expansion reflects our commitment to meeting that demand with unmatched quality and responsiveness.”

About AIRO

AIRO (Nasdaq: AIRO) is a technologically differentiated aerospace, autonomy, and air mobility platform targeting 21st century aerospace and defense opportunities. AIRO is organized into four operating segments, each of which represents a critical growth vector in the aerospace and defense market: Drones, Avionics, Training, and Electric Air Mobility.

Forward-Looking Statements

The statements contained in this press release that are not historical facts are forward-looking statements. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates,” or similar expressions which concern our strategy, plans, projections or intentions. These forward-looking statements may be included throughout this press release, and include, but are not limited to, statements relating to 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 prospectus filed with the Securities and Exchange Commission (“SEC”) on June 16, 2025, as well as in other filings AIRO may make with the SEC in the future.. AIRO’s expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Any forward-looking statement in this press release speaks only as of the date of this release. AIRO undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.