AIRO Announces Pricing of Upsized Public Offering

09/10/2025 – 09:18 PM

ALBUQUERQUE, N.M. & MONTREAL & STØVRING, Denmark & WASHINGTON–(BUSINESS WIRE)–AIRO Group Holdings, Inc. (NASDAQ: AIRO) (“AIRO”), a player in the advanced aerospace and defense technology sector, announced the pricing of its upsized underwritten public offering. The company is offering 4,200,000 shares of its common stock at a price of $18.50 per share.

The offering is expected to generate gross proceeds of $77.7 million for AIRO, before accounting for underwriting discounts, commissions, and other offering-related expenses. Underwriters have been granted a 30-day option to purchase up to an additional 630,000 shares to cover potential over-allotments, at the same price, minus underwriting discounts and commissions. The offering is slated to close around September 12, 2025, pending standard closing conditions.

AIRO intends to allocate the net proceeds primarily to fund strategic growth and explore potential acquisitions of businesses, products, services, and technologies that complement the company’s existing portfolio. A significant portion of the proceeds will also be used to repurchase 978,000 shares of common stock from select shareholders at the public offering price, net of underwriting discounts and commissions. Should the underwriters exercise their option for additional shares, AIRO plans to repurchase up to 138,312 more shares from the same stockholders. Remaining funds will be earmarked for general corporate purposes, including working capital and operational needs.

Cantor is the lead book-running manager for the offering. BTIG, Mizuho, and Bancroft Capital are serving as joint book-running managers.

The U.S. Securities and Exchange Commission (SEC) declared the registration statement for the offering effective on September 10, 2025. The offering is being conducted solely through a final prospectus.

This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities. No sales of these securities will occur in any jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction.

About AIRO

AIRO Group Holdings, Inc. focuses on creating a technologically advanced aerospace, autonomy, and air mobility platform designed to capitalize on emerging opportunities in the 21st-century aerospace and defense market. The company is structured into four operating segments: Drones, Avionics, Training, and Electric Air Mobility. These segments represent crucial growth areas within the broader aerospace and defense industry, positioning AIRO to capture significant market share as these technologies mature and find broader applications.

Analysis: A Calculated Move for Growth

AIRO’s public offering and strategic use of proceeds signal a company laser-focused on expansion. The allocation of capital towards both acquisitions and technology development suggests a dual strategy: bolstering existing capabilities through acquiring complementary businesses and fostering organic growth through innovation. This indicates that AIRO’s management sees opportunities in consolidating segments within the aerospace and defense landscape. The buyback component further reinforces confidence in its strategy, while also returning immediate value to its key shareholders.

The segments AIRO is targeting – Drones, Avionics, Training, and Electric Air Mobility – are facing rapid technological advancement. Drones are experiencing exponential growth in commercial and defense markets, prompting innovations in autonomy, payload capacity, and airspace management. Recent FAA regulatory moves, such as loosened drone flight restrictions and the acceptance of certain drone delivery programs, are opening new revenue streams for drone manufacturers and service providers. AIRO’s avionics segment will likely be heavily influenced by the adoption of advanced sensor technologies, AI-powered flight management systems, and secure communication networks.

The Electric Air Mobility segment faces technological hurdles related to battery technology, energy density, and infrastructure requirements (charging stations, air traffic management systems). However, technological advancements in these areas, coupled with aggressive private and public investment, are gradually lowering the barrier to entry for electric vertical takeoff and landing (eVTOL) aircraft in urban settings. This segment also presents an exciting opportunity for AIRO to collaborate with companies on sustainable aviation goals. However, this could also open the company up to fierce competition with many companies investing in this technology.

Forward-Looking Statements

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in these statements include market conditions, the company’s ability to successfully execute its growth strategy, and other risks detailed in AIRO’s filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250910374084/en/

Source: AIRO Group Holdings, Inc.