AIRO expands with cargo drone development at Quebec innovation hub

Published 22/07/2025, 12:36
AIRO expands with cargo drone development at Quebec innovation hub

ALBUQUERQUE/MONTREAL - AIRO (NASDAQ:AIRO), a $599 million market cap company with impressive gross margins of nearly 67%, announced on Tuesday the development of a new middle-mile cargo drone and the expansion of operations into Quebec’s YMX Innovation Zone in Mirabel through its Electric Air Mobility segment, Jaunt Air Mobility. According to InvestingPro data, analysts expect 28% revenue growth for the company this fiscal year.

The cargo drone is designed to carry 250-500 lbs over distances exceeding 200 miles, according to the company’s announcement at EAA AirVenture 2025 in Oshkosh, Wisconsin. The aircraft utilizes Jaunt’s patented Slowed-Rotor Compound technology, combining vertical takeoff capabilities with fixed-wing cruise efficiency. The announcement comes as AIRO’s stock has experienced significant volatility, with a 16.6% decline over the past week.

AIRO stated the drone will incorporate command and control capabilities supporting both cellular and satellite communications, with regulatory approvals underway for beyond visual line-of-sight operations using dual-redundant data links.

The expansion into the YMX Innovation Zone strengthens Jaunt’s collaboration with Vertiko Mobilité, a Canadian company specializing in Advanced Air Mobility operations and ground infrastructure development.

"We’re thrilled to unveil our cargo drone—an innovative solution designed to serve both remote and urban communities," said Martin Peryea, SVP & GM of AIRO’s Electric Air Mobility segment.

The company indicated the drone aims to provide an alternative to traditional middle-mile freight solutions such as box trucks and tractor-trailers, with potential applications including delivering medical supplies to remote communities.

By establishing operations at the YMX Innovation Zone, AIRO gains access to testing facilities and a collaborative ecosystem of research institutions, industry leaders, and government stakeholders as it works toward Transport Canada certification.

The announcement was made via a press release statement from the company.

In other recent news, AIRO Group announced plans to expand its U.S. operations with a new manufacturing and engineering development facility. This expansion is aimed at increasing production capacity for the RQ-35 ISR Drone, a product that has gained traction in defense and security sectors. In terms of stock analysis, Cantor Fitzgerald reiterated its Overweight rating on AIRO Group with a price target of $35.00, reflecting confidence in the company’s growth potential. Similarly, Mizuho maintained its Outperform rating and set a price target of $31.00, highlighting the impact of upcoming U.S. Defense Department reforms on drone procurement practices. BTIG also initiated coverage with a Buy rating and a $26.00 price target, noting AIRO’s diverse operations across various aerospace segments. These developments indicate a strong focus on growth and adaptation to industry changes. The company’s strategic moves and analyst support suggest a robust outlook in the aerospace and defense technology sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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