AIRO Group Holdings ("AIRO") today announced the successful completion of the first RQ‑35 Intelligence, Surveillance and Reconnaissance (ISR) drones produced to full operational standard in its U.S. manufacturing facility in Phoenix, Arizona. This marks the first U.S.-manufactured RQ‑35 systems and a major step forward in the company's Made‑in‑America expansion strategy.

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First US-produced RQ-35 ISR Drones Take Flight - December 2025

The systems—built to the same specifications as those produced at AIRO's Denmark facility—completed Phase 1 of the U.S. manufacturing and validation program. This phase encompassed system assembly, including integration of all major components and complete system build-up. The aircraft then underwent a comprehensive flight‑test campaign, concluding with successful final flights on December 11.

Joe Burns, CEO of AIRO, said:

"Completing the first U.S.-built RQ‑35 systems is a significant milestone for AIRO and a testament to the skill and dedication of our Phoenix and Denmark teams. Their seamless collaboration, rigorous training, and execution will enable us to deliver combat‑proven ISR systems from U.S. soil. This achievement reflects our commitment to our customers, our partners, and our promise to expand reliable, mission‑ready drone production in the United States."

John Uczekaj, President and COO of AIRO, added:

"I'm extremely proud of both our U.S. Drone team and the Sky‑Watch team in Denmark. Their close collaboration and the hands‑on support from Sky‑Watch leadership have been instrumental in standing up our U.S. manufacturing capability. Their combined expertise has accelerated our path to producing reliable, operationally proven RQ‑35 systems in Phoenix."

Martin Schousboe, CEO of Sky‑Watch, said:

"Our focus has been on ensuring the Phoenix team is aligned with the engineering, production, and testing standards that define the RQ‑35. We are committed to providing the technical and operational expertise needed to establish a consistent and reliable U.S. production line. The combined efforts of our Danish and U.S. teams reflect a strong, disciplined partnership that we are proud of."

The RQ‑35 has earned a global reputation as a leading force‑multiplying ISR and targeting drone, optimized for operation in GPS‑denied, jamming‑intense, and EW‑rich environments. The system delivers persistent intelligence with minimal operator load and is engineered to operate reliably from extreme cold to extreme heat. With resilient communications, optimized payloads, and a long record of durability, RQ‑35 aircraft have proven to be reliable force‑multipliers across diverse theaters.

This U.S. production milestone also advances the RQ‑35 in the Department of War's Blue UAS certification process, enabling more efficient procurement and deployment pathways. It further strengthens AIRO's expanding drone portfolio—including the RQ‑35, our strategic Nord Drone joint venture, and our continued progress on the Bullet JV—as our business teams actively pursue opportunities with U.S. and allied government customers.

Chirinjeev Kathuria, Executive Chairman of AIRO, said:

"Today's accomplishment is about keeping our promises—to our employees, our investors, and our clients. We set a clear goal to deliver the first complete RQ‑35 systems from our U.S. facility before the end of 2025, and we have done exactly that. This is only the beginning of what AIRO will achieve as we scale U.S. production."

About AIRO

AIRO Group Holdings is a next-generation aerospace and advanced air mobility platform driving innovation in defense and commercial markets. Headquartered in McLean, VA, with operations in the U.S., Canada, and Denmark, AIRO combines global reach with deep technical expertise. Through a vertically integrated model and a differentiated technology portfolio, AIRO delivers solutions across four high-growth segments: Drones, Avionics, Training, and Electric Air Mobility.

Forward-Looking Statements

The statements contained in this press release that are not historical facts are forward‑looking statements. You can identify forward‑looking statements because they contain words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," or "anticipates," or similar expressions which concern our strategy, plans, projections, or intentions. These forward‑looking statements may appear throughout this press release and include, but are not limited to, statements regarding: the continued development and scaling of AIRO's U.S. manufacturing capabilities; expected progress of the RQ‑35 through the Department of War's Blue UAS certification process; anticipated benefits of increased U.S.‑based production; planned collaboration between AIRO and Sky‑Watch teams; and AIRO's expectations regarding future contracts, customer opportunities, and expansion of its drone portfolio. By their nature, forward-looking statements are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, including those described in the section titled "Risk Factors" in AIRO's Quarterly Report on Form 10-Q for the period ended Septmeber 30, 2025 filed with the Securities and Exchange Commission ("SEC") on November 14, 2025 as well as other filings AIRO may make with the SEC in the future. Forward-looking statements represent AIRO's management's beliefs and assumptions only as of the date such statements are made. AIRO undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

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Dan Johnson

AIRO Group Holdings, Inc.

InvestorRelations@theairogroup.com

media@theairogroup.com

AIRO Group Announces First U.S.-Produced RQ‑35 ISR Drones Completed at Phoenix Manufacturing Facility