AIRO

Positives: investment behind drones capacity, Phoenix consolidation with AS9100D certification, and reprioritization toward drones and ISR rather than capital-heavy passenger eVTOL.

Cautions: 2025 follow-on equity proceeds partly used for buybacks at an early stage; material stock-based compensation; and a related-party incentive that pays 20 percent of Sky-Watch EBITDA to a Director-affiliated entity, which we view as misaligned for minority holders. JV ambitions with Nord Drone remain contingent and time-bound.

We would prefer clearer guardrails on dilution, fewer one-off items, and cash generation before further repurchases.