Unusual Machines Inc. (UMAC:NYSEAMERICAN) announced a spate of news, including its release of a product, its plan for in-house manufacturing and its appointment of an executive.
Most recently, the Florida-based company released the Rotor Riot Brave 55A ESC, a four-in-one electronic speed controller that works seamlessly with flight controllers like its Rotor Riot Brave F7, a Jan. 17 news release noted. Built with 32-bit processors and capable of efficiently sending current to brushless DC electric motors, this new product should meet the demands of high-performance drones needing greater motor output for fast flights and acrobatics.
Rotor Riot Brave 55A ESC has been added to the Blue UAS Framework, a list, for federal agencies, of secure, trusted products that meet U.S. requirements. Already designated Blue UAS is Unusual Machines' Rotor Riot Brave F7.
More than 90% of consumer drones, used by the U.S. military, are made in China, according to Marc Andreessen. As such, the U.S. critically needs non-Chinese drone components that are compliant with the National Defense Authorization Act (NDAA), and Unusual Machines' new product, manufactured in the States, is one.
"This product expands the market created by the Brave F7 flight controller and furthers our commitment to producing high-quality NDAA-compliant components at competitive prices," said Unusual Machines CEO Allan Evans. "The addition of the Brave 55A ESC further establishes us as a trusted partner for the U.S. drone industry."
Technical Analyst Clive Maund wrote in a Dec. 12 report, "Government restrictions on the importation of critical components put the company in a strong position with its domestic production of approved components, such as the already highly successful Brave F7 units (flight controllers)."
The Brave 55A ESC will be available for retail sale through the Rotor Riot store, with shipping to start in March. The company is accepting volume purchase pre-orders for it now.
In other news, announced in a Jan. 14 news release, Unusual Machines plans to bring drone motor production in house, to better support customers, ensure greater control over quality, performance and cost, decrease time-to-market for new motor parts and make the company's supply chain more resilient.
To execute this and lead development of its drone components business, the company appointed Brad Mello as its vice president of manufacturing. This mechanical engineer has extensive experience in automotive manufacturing, industrial automation, consumer products, global supply chain management and engineering optimization.
At Tesla Inc., for instance, he spearheaded final assembly automation projects for the Model 3, integrating advanced robotics and manufacturing strategies to optimize throughput and quality. At Mode Design, a mechanical keyboard company he co-founded, he led engineering design, manufacturing and international supply chain operations.
"[Mello's] expertise and diverse set of experiences are critical as we shift our focus to building world-class, U.S.-made drone components," CEO Allan Evans said in the release.
Serving All Market Segments
Headquartered in Florida, U.S., Unusual Machines manufactures and sells drone components for all uses, defense, commercial and recreational. It aims to become the go-to provider of these products for the U.S., thereby reducing its reliance on foreign supply chains, noted the release.
"The company serves all segments of the drone market, which includes drone racing, where fast and agile drones take part in competitive events; freestyle flying, where drones are for hobby use and are used in aerial acrobatics; and cinematic filming, in which drones are used to make high-quality videos which are especially useful in the tourism trade," Maund reported.
Unusual Machines owns two brands it acquired from partner Red Cat Holdings Inc. (RCAT:NASDAQ). One is Fat Shark, specializing in FPV (first-person view) ultra-low latency video goggles for drone pilots.
Another is Rotor Riot, a direct-to-consumer online store for small, acrobatic FPV drones and equipment. This brand, wrote Maund, generates about $5 million ($5M) in revenue per year with 20–30% year over year growth that is expected to continue.
"These acquisitions position Unusual Machines to serve growing industries such as public safety, defense and enterprise inspection while leveraging a shift toward American-made drone components due to geopolitical tensions and legislative changes," Ryan Hasson wrote in a December 2024 MarketBeat article.
Strong Sector Growth Forecasted
Drone demand continues to rise, driving industry growth both in the U.S. and globally, data show.
In the States, for instance, between now and 2034, demand for autonomous drones is projected to expand at a 19.7% compound annual growth rate (CAGR), and demand for fixed wing drones should see a 19.1% CAGR, according to Fact.MR.
A 16.9% CAGR is expected for drone sales in the U.S. during this same forecast period, climbing to $31.3 billion ($31.3B), up from $6.6B in 2024. High drone use for commercial and recreational purposes is driving growth.
As for the U.S. commercial drone market in the U.S., it awaits the Federal Aviation Administration's release of the Part 108 Notice of Proposed Rulemaking (NPRM), a document outlining proposed new or amended drone regulations, Commercial UAV News wrote on Jan. 3.
"We expect 2025 to be a year of transition between Part 107 (the promise of the release of Part 108 NPRM) and Part 108," the article noted, "a year of preparations for a new era of flights beyond the visual range of the operator, when aircraft piloted by remote operators will have the possibility of crossing international boundaries, forcing the international civil aviation authority to intervene and start the process of homologating rules for drones and air taxis worldwide."
Commercial end uses include construction, agriculture, security, film and television and surveillance.
Regarding land surveying, more and more industries worldwide that are involved in it, from mining and oil and gas to forestry and farming, are replacing traditional methods with drone use due to their expediency, reported DroneXL in December 2024. With unmanned aerial vehicles, surveys may be done in hours versus weeks or months. This demand and increasing urbanization are driving growth of the land survey equipment market, estimated to reach $12.56B in value by 2028.
With respect to the global military defense drone industry, it too is on a growth trajectory, reported Grand View Research. By 2030, this market's revenue is projected to double from where it is now, hitting $88B from $40.5B. During this forecast period, a 13.9% CAGR is expected. Last year, North America generated the most revenue in this sector.
Stock About to Move Higher
In his recent report about Unusual Machines, Technical Analyst Maund wrote that its stock "put in a stellar performance since August" then "broke out in November into a spectacular rally," the latter likely being the first upleg in a major bull market. Since June, the stock rose eighteenfold. The December announcement that Donald Trump Jr. joined the company's advisory board, Streetwise Reports noted, undoubtedly contributed. The businessman has said he favors bringing drone manufacturing jobs to the States.
"The stock's dramatic rise following this announcement underscores the market's perception of the significance of [Trump Jr.'s] appointment," Hasson added.
After having a normal reaction back into "buying territory" in December, Maund noted, UMAC has been looking attractive again and appears about to move higher soon.
"Fundamentally, the company is in the right place at the right time as it is a drone company, and to put it mildly, this is a growth industry with demand exploding," in large part due to increasing global conflicts, he added.
On Dec. 9, ThinkEquity analyst Dr. Ashok Kumar maintained his Buy rating on Unusual Machines. At the time, he raised his price target on it by 150%, but the company went on to reach and surpass it. Also in his report on that day, Kumar highlighted Unusual Machines' strategic evolution in defense-focused drone manufacturing and successful capital restructuring efforts.
Ownership and Share Structure
According to Reuters, eight strategic entities own 13.94% shares of Unusual Machines. The Top shareholders include insiders CEO Evans with 4.57%, Chief Financial Officer Brian Hoff with 2.34% and Chief Operating Officer Drew Camden with 0.67%. Jeffrey Thompson, president/CEO of Red Cat Holdings, owns 2.16%.
Institutional ownership totals 1.36%, divided among 13 entities. The Top 3 shareholders are Eleven Managers LLC with 0.34%, Rathbones Investment Management Inc. with 0.29% and Commonwealth Financial Network with 0.22%.
Unusual Machines has 14.66 million (14.66M) outstanding shares and 12.61M free float traded shares. Its market cap is $197.43M. Its 52-week high and low share prices are $23.62 and $0.09 per share, respectively.
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