Drone Manufacturer Secures $3.75M Purchase Order Breakthrough in US Defense Market

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Unusual Machines Inc. (UMAC:NYSEAMERICAN) announced that it has secured a purchase order from Performance Drone Works (PDW) valued at US$3.75 million, according to a release on December 22.

This order is intended to support the expansion of PDW's AM-FPV program and bolster investment in America's small Unmanned Aerial Systems (sUAS) supply chain, UMAC said.

"PDW is an impressive company building mission-focused drone platforms in the U.S.," said Unusual Machines Chief Executive Officer Allan Evans. "We're pleased they have chosen to work with us as a strategic supplier in strengthening the domestic drone infrastructure. This order reflects the progress we've made in building a domestic manufacturing base for critical drone components aligned with national priorities."

Ryan Gury, CEO and Co-founder of PDW, added, "We are making a big investment in compliant FPV inventory as we scale to meet demand. This partnership provides critical components, at speed, right here at home."

The order from PDW follows the company's recent investments in U.S.-based manufacturing, including domestic motor production and dedicated facilities to support headset assembly and future production activities.

According to the release, PDW is a private defense technology company based in Huntsville, Alabama, and is a leading producer of combat robotics utilized by clients across all branches of the United States military.

In August 2025, PDW inaugurated Drone Factory 01, a 90,000-square-foot manufacturing facility specifically designed to facilitate rapid iteration and full-scale production of the C100 multi-mission unmanned aircraft system and the AM-FPV attritable munition, UMAC said. In September 2025, PDW secured a US$20.9 million contract from the U.S. Army to provide C100 UAS and Multi-Mission Payloads in support of the Army's Transformation in Contact initiative, marking the third C100 contract under the Company Direct Requirement for Medium Range Reconnaissance.

Unmanned Supercycle Set to Accelerate in 2026, Firm Says

On December 2, the Department of War (DoW) announced the Drone Dominance Program (DDP) — Request for Information (RFI), marking the initial step toward what is anticipated to be one of the largest procurement cycles for low-cost, attritable small UAS in U.S. history, according to a December 3 research note featuring the company by Needham Analyst Austin Bohlig. The RFI outlines a clear path for US$1 billion in orders, covering approximately 340,000 drones over four phases in the next two years. This development is considered highly significant, as it supports the belief that the unmanned supercycle is set to accelerate substantially in 2026.

"While the program is structured to accommodate several drone OEM vendors, we believe Unusual Machines (UMAC) is particularly well positioned to capitalize on this opportunity, given its leadership as one of the few domestic suppliers of low-cost, flight-critical components essential for meeting the program’s supply-chain requirements," Bohlig wrote. "Based on the anticipated unit volumes, we estimate this represents a US$170 million addressable market opportunity for UMAC across the program’s initial phases."

While each phase of the DDP is designed to accommodate multiple vendors, Bohlig said his firm believes UMAC is uniquely positioned to benefit from this initiative due to its role as one of the few domestic suppliers of low-cost, flight-critical components essential for low-cost attritable drones.

"Based on our analysis, low-cost attritable drones contain roughly seven key components that together represent approximately US$500 of UMAC content per drone," he noted.

With the program outlining deliveries totaling 340,000 drones over the next two years, the firm estimates this equates to a US$170 million total addressable market opportunity for UMAC, with potentially US$45 million available in 2026, Bohlig said.

Combined with the company’s existing US$16 million backlog expected to be fulfilled in the first half of 2026, as well as emerging opportunities tied to PBAS and Skyfoundry, Bohlig said the firm continued to view UMAC as positioned for significant growth in 2026 as these programs scale.

Analyst: 'A Central Node' in US Drone Ecosystem

Litchfield Hills Research Analyst Barry Sine noted in a research report dated November 13 that UMAC invested US$25 million for a 34% ownership in XTI Aerospace, thereby gaining access to a developer of long-range vertical take-off and landing (VTOL) aircraft and benefiting from XTI's concurrent acquisition of Drone Nerds, the largest drone distributor in the U.S. "UMAC continues to evolve from a drone components manufacturer into a central node in the emerging American drone and VTOL ecosystem," Sine wrote. "This investment enhances strategic optionality, deepens vertical integration, and offers a uniquely asymmetric risk-reward profile."

Litchfield Hills maintained its US$25 per share target price on the U.S.-based drone components supplier, noted Sine. "Even without strategic investments, UMAC's core business, positioned for a surge in U.S. drone demand, would justify our valuation," Sine wrote. The announcement "underscores that UMAC is becoming far more than 'just' a components supplier. It is rapidly positioning itself as a key consolidator in a once-in-a-generation industry shift."

At the time of the analyst's report, Unusual Machines was trading at about US$10.73 per share. From that price, the return to target is 133%. UMAC remains a Buy. The company has 36.8 million shares outstanding. Its market cap is US$395.7 million. Its 52-week range is US$2.34–23.62 per share.

The Catalyst: US Wants 'Drone Dominance'

According to a December 2 Pentagon News report on the War Department website by C. Todd Lopez, the department issued a request for information to assess the industry's readiness and capability to produce approximately 300,000 drones quickly and cost-effectively. This initiative is a direct effort by Secretary of War Pete Hegseth to fulfill the "drone dominance" objectives set by the president.

On June 6, President Donald J. Trump signed the "Unleashing American Drone Dominance" executive order, which outlines how the United States plans to enhance its drone capabilities in both commercial and military sectors. This includes delivering large quantities of affordable, American-made, lethal drones to U.S. military units to boost their combat effectiveness.

In July, Hegseth followed up with the "Unleashing U.S. Military Drone Dominance" memorandum, detailing his strategy for how the department would achieve the president's goals. Part of the secretary's plan involves collaborating with other government sectors to strengthen the emerging U.S. drone manufacturing industry by approving hundreds of American products for department purchase. This effort aims to drive a "technological leapfrog" by equipping combat units with the best low-cost American-made drones and incorporating training that reflects the department's combat expectations.

"Next year I expect to see [drone] capability integrated into all relevant combat training, including force-on-force drone wars," the secretary stated.

Grand View Research reported that the global drone market was valued at US$73.06 billion in 2024 and is anticipated to reach US$163.6 billion by 2030, with a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030. This expansion is primarily driven by rapid technological advancements in drones, improvements in battery efficiency, AI-driven autonomous systems, and enhanced imaging sensors, which are broadening the application of drones across various industries, as noted by Grand View. In 2024, North America dominated the drone market, capturing over 39% of the market share. The hardware segment accounted for the largest revenue share by component, exceeding 58% in 2024, and the multi-rotor segment held the largest revenue share by product in 2024, according to researchers.

The integration of AI into the drone market has revolutionized drone capabilities, according to Markets and Markets. No longer merely remote-controlled flying devices, today's drones utilize AI to navigate independently, recognize objects, make real-time decisions, and perform complex tasks with minimal human intervention. The AI-driven drone market is expanding rapidly. Although valuations vary slightly among analysts, the consensus is clear: the market is expected to more than triple in value over the next decade, with compound annual growth rates ranging from 15% to nearly 30%, the research firm noted.

Startups and defense technology companies in the U.S. are at the forefront, developing autonomous drone platforms for real-world applications, the research firm said. Major defense initiatives are funding the creation of drones capable of thinking, coordinating, and executing missions with minimal input. In the commercial sector, AI-powered drones are inspecting pipelines, mapping agricultural land, and responding to emergencies more swiftly than ever before.

The financial stakes are significant. According to a December 5 report for Business Insider, author Chris Panella highlighted that "billions of dollars are at stake" in the race to develop defense drones. "The Pentagon is preparing to spend US$9.4 billion on aerial combat drones in fiscal year 2026 as part of its larger US$13.4 billion investment in autonomous systems," the article noted. "Additionally, the Air Force is requesting US$789.4 million for the research and development of autonomous 'loyal wingmen' drones that can operate alongside crewed combat aircraft or conduct missions independently. The Department of Defense also plans to allocate US$3.1 billion to counter-drone technology."

Ownership and Share Structure¹

As for ownership and share structure, seven strategic entities own 6.51% of Unusual Machines, including the CEO, Evans, with 2.89% and Chief Financial Officer Brian Hoff with 1.13%. More than 100 institutions hold 23.43%; one of them, Tudor Investment Corp., is the largest shareholder overall, with 3.27%. Retail investors have the rest.

Unusual Machines has 36.88 million shares outstanding. Its market cap is US$439.19 million. Its 52-week range is US$4.45–21.65 per share.