ALBUQUERQUE, N.M. & MONTREAL & STØVRING, Denmark & WASHINGTON--(BUSINESS WIRE)- - #AIROClosing--AIRO Group Holdings, Inc. (NASDAQ: AIRO) ("AIRO†), a company specializing in advanced aerospace and defense technologies, today announced the closing of its upsized underwritten public offering of 4,830,000 shares of its common stock, including the full exercise of the underwriters' option to purchase 630,000 additional shares on September 12, 2025. The gross proceeds to AIRO from the offering, before deducting ...

Core Viewpoint - AIRO Group Holdings, Inc. has announced the pricing of its upsized underwritten public offering of 4,200,000 shares at a price of $18.50 per share, indicating strong market interest and potential for capital raising [1] Company Summary - AIRO Group specializes in advanced aerospace and defense technologies, positioning itself in a growing sector with increasing demand for innovative solutions [1] - The gross proceeds from the offering are expected to be significant, although the exact amount after deducting underwriting discounts and commissions has not been specified [1]

Financial Data and Key Metrics Changes - The company reported a net income of $54.4 million, or $0.54 per share, for Q2 2025, with consolidated revenue increasing to $698 million, a 4% increase year-over-year [5][6] - Consolidated operating income rose by 31% to $79.2 million, and consolidated adjusted EBITDA grew by 20% to $103 million [6][20] - Free cash flow for the quarter was $46.9 million, with an ending cash position of $434 million and no borrowings under the secured revolving credit facility [6][7] Business Segment Performance - Subsea Robotics (SSR) saw operating income improve by 4% to $64.5 million, with revenue increasing approximately 2% and an EBITDA margin of 35% [8][9] - Manufactured Products generated operating income of $18.8 million, marking a 31% rise, with revenue growing by 4% to $145 million [10][11] - Offshore Projects Group (OPG) reported operating income of $21.7 million, with revenue increasing by 4% and operating income margin expanding to 15% [12][13] - Aerospace and Defense Technologies (AdTech) operating income increased by 125% to $16.3 million, with a 13% increase in revenue [15][17] Market Data and Key Metrics Changes - ROV revenue per day increased to $11,065, with fleet utilization at 67% [5][8] - The company maintained a 60% share of the contracted floating rig market with ROV contracts on 81 of the 136 floating rigs under contract [9] - The company anticipates continued tendering activity supportive of ROV utilization and pricing assumptions, particularly in decommissioning opportunities in Europe [9][10] Company Strategy and Industry Competition - The company remains positive about growth in both energy and aerospace and defense markets, with expectations for continued growth beyond 2025 [23] - The recent reconciliation bill is expected to positively impact all three AdTech business lines over the next five years, particularly in unmanned underwater vehicles [18][23] - The company is gearing up to increase capacity to serve the submarine maintenance and repair market due to anticipated funding increases [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain market share and improve operational results across segments [21][22] - The outlook for Q3 2025 includes expected increases in consolidated revenue and EBITDA, with projections for SSR and AdTech showing significant growth [19][20] - Management noted that visibility into future contracts has improved, particularly with larger international contracts [49] Other Important Information - Unallocated expenses for the quarter were $46.7 million, slightly higher than guidance [19] - The company has secured order commitments totaling approximately $100 million in the first weeks of Q3 2025 [11][32] Q&A Session Summary Question: Impact of offshore rig white space on business - Management acknowledged some impact but noted that pricing improvements have offset concerns, with expectations for ROV utilization to reach 70% by year-end [26][27] Question: Orders in the manufactured product segment - Management indicated that orders are expected to be flat year-over-year, with positive signals for 2026 [30][32] Question: ROV utilization outlook - Management stated that the lower utilization outlook relates to both vessel and rig support, with increased clarity on plans for Q4 [39][40] Question: Free cash flow visibility - Management highlighted that cash flow typically rebounds in Q3 and Q4, with significant amounts sitting in receivables [42][44] Question: OPG business visibility - Management confirmed improved visibility due to securing larger contracts, which stabilizes the business [48][49] Question: Potential impact of the reconciliation bill - Management discussed the positive implications for OTEC and other business lines, particularly in defense and space sectors [50][55]

Financial Data and Key Metrics Changes - The company reported a net income of $54.4 million, or $0.54 per share, for Q2 2025, with consolidated revenue increasing to $698 million, a 4% increase year-over-year [7] - Consolidated operating income rose by 31% to $79.2 million, and consolidated adjusted EBITDA grew by 20% to $103 million [7] - Free cash flow for the quarter was $46.9 million, with an ending cash position of $434 million and no borrowings under the secured revolving credit facility [7] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) saw operating income improve by 4% to $64.5 million, with revenue increasing approximately 2% and EBITDA margin expanding slightly to 35% [9] - Manufactured Products generated operating income of $18.8 million, marking a 31% rise over the previous year, with revenue growing by 4% to $145 million [11] - Offshore Projects Group (OPG) reported operating income of $21.7 million, with revenue increasing by 4% and operating income margin expanding to 15% [13] Market Data and Key Metrics Changes - ROV revenue per day increased to $11,065, with fleet utilization for the quarter at 67% [6][9] - The company maintained a 60% share of the contracted floating rig market with ROV contracts on 81 of the 136 floating rigs under contract [10] - The company anticipates continued tendering activity supportive of ROV utilization and pricing assumptions, particularly in decommissioning opportunities in Europe [10] Company Strategy and Development Direction - The company remains positive about growth in both energy and aerospace and defense markets, with expectations for continued growth beyond 2025 [23] - The company is focusing on integrating Global Design Innovation into its Integrity Management business and identifying pilot projects to demonstrate new capabilities [15] - The recent passage of the reconciliation bill is expected to positively impact all three AdTech business lines over the next five years [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of execution and resilience of the business, noting eight consecutive quarters of meeting or exceeding adjusted EBITDA guidance [4] - The company expects to see solid vessel utilization and activity levels for OPG based on current backlog and quotation activity [14] - Management indicated that while the macro environment is encouraging, they do not expect activity to reach the same level as Q4 2024 [15] Other Important Information - Unallocated expenses for the quarter were $46.7 million, slightly higher than guidance [19] - The company has secured order commitments totaling approximately $100 million in the first weeks of the quarter, supporting confidence in the second half forecast [12] Q&A Session Summary Question: Impact of offshore rig white space on business - Management acknowledged some impact but noted that pricing increases have offset concerns, with expectations for overall ROV utilization to reach 70% by year-end [27][28] Question: Orders in manufactured products segment - Management indicated that orders are expected to be more flattish year-over-year, with positive signals for subsea business and umbilicals [30][34] Question: ROV utilization outlook - Management stated that the lower utilization outlook relates to both vessel and rig support, with increased clarity on plans for the fourth quarter [40][41] Question: Free cash flow visibility - Management highlighted that cash generation typically rebounds in Q3 and Q4, with a good amount of cash sitting in receivables [43][44] Question: Visibility in OPG business - Management confirmed increased visibility due to securing larger international contracts, which provide a stable base for future work [48] Question: Impact of the reconciliation bill - Management discussed the positive effects on OTEC and other business lines, with expectations for increased funding and project activity in space and submarine maintenance [50][56]