Bullish indicating open at $55-$60, IPO prices at $37
PALM BEACH - ZenaTech, Inc. (NASDAQ:ZENA) has acquired Cardinal Civil Resources, a Virginia-based land surveying and engineering firm, marking its eighth and largest acquisition in the drone services sector, according to a company press release. The company, currently valued at $540.24 million, maintains impressive gross profit margins of nearly 67%, according to InvestingPro data.
The acquisition expands ZenaTech’s Drone as a Service (DaaS) operations across Virginia, North Carolina, and South Carolina, adding a portfolio of government and commercial clients including the U.S. Department of Transportation.
Founded in 2010, Cardinal Civil Resources provides survey and mapping services to federal agencies, state agencies, municipalities, and commercial clients including a national homebuilder and the U.S. National Park Service.
The acquisition comes as the drone industry faces potential regulatory changes. On August 5, U.S. Transportation Secretary Sean Duffy proposed a rule to expand Beyond Visual Line of Sight operations, which would replace case-by-case waivers with a standardized framework for drone operations.
"This eighth acquisition not only further expands our national footprint, but it connects us to a deeply rooted base of premier long-term government and commercial clients," said Shaun Passley, ZenaTech CEO. While analysts project sales growth for the current year with price targets ranging from $26 to $35, InvestingPro subscribers can access 8 additional key insights about ZenaTech’s financial health and growth prospects.
ZenaTech aims to establish 25 Drone as a Service locations nationwide by mid-2026. The company’s business model provides on-demand access to drone services without requiring customers to invest in hardware, software, pilots, or regulatory compliance.
The broader Drone-as-a-Service market was valued at $6.3 billion in 2024 and is projected to reach $27.3 billion by 2033, growing at a CAGR of 18.1% from 2026 to 2033, according to data cited in the press release from Verified Market Reports. With ZenaTech’s next earnings report due on September 3, investors can gain deeper insights into the company’s positioning in this growing market through InvestingPro’s comprehensive financial analysis tools.
In other recent news, AIRO announced the development of a new middle-mile cargo drone and the expansion of operations into Quebec’s YMX Innovation Zone. The cargo drone, designed to carry between 250-500 lbs over distances exceeding 200 miles, will utilize Jaunt Air Mobility’s patented technology. Additionally, AIRO plans to establish a new manufacturing and engineering facility in the United States to enhance production capacity for its RQ-35 ISR Drone, which is widely used in defense and security sectors.
Analyst activity has also been notable, with Cantor Fitzgerald reiterating an Overweight rating and a $35.00 price target for AIRO, reflecting a positive outlook based on valuation approaches. Mizuho has reaffirmed its Outperform rating and a $31.00 price target, following the U.S. Defense Department’s reforms in drone procurement practices. These developments suggest a strategic alignment with evolving defense needs. Cantor Fitzgerald also initiated coverage with an Overweight rating, emphasizing AIRO’s potential as a growth opportunity in defense technology.
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