Unusual Machines Inc. (UMAC:NYSE.American) signed a lease for a 17,000-square-foot drone motor production facility in Orlando, Fla., expanding the company's domestic manufacturing capabilities, announced a news release.
"This factory is a major milestone in our strategy to rapidly onshore drone component manufacturing," said Chief Executive Officer Allan Evans in the release. "We are solving one of the major pain points in the American drone supply chain."
Already Unusual Machines has ordered the necessary production equipment for the plant. There, it will manufacture high-performance brushless motors for first-person view (FPV) and commercial drones, the release explained. The in-house winding capabilities will allow the company to achieve standard and custom Kv ratings.
"Our new facility will enable us to build at scale, while also supporting customer-specific variants through flexible work cells," Vice President of Manufacturing Brad Mello said in the release. With these, Unusual Machines will be able to produce at high volumes and in small batches. At first, the company will manufacture three core motor sizes, 2207, 2807 and 3220. Eventually, it will ramp up production to more than 50,000 motors per month, to meet demand.
"We're implementing best-in-class practices from day one — lean layouts, digital traceability and automated quality control — to ensure we can deliver reliable motors at volume with the precision and accountability required for government and commercial customers."
Unusual Machines will source critical components — such as bearings, magnets and stators — from both domestic and international sources to counteract supply chain disruptions. The company will offer the former as Made-in-USA motors, the latter as made globally, thereby accommodating different regulatory customers.
The new production facility is an expansion of Unusual Machines' Orlando campus, near its headquarters. Because it is close to Rotor Riot's technical team and pilot community, UMAC will be able to get feedback on products quickly and then adjust them accordingly to meet end users' needs.
Supplying the U.S. Drone Industry
Unusual Machines manufactures drones and drone components that are Defense Innovation Unit Blue and National Defense Authorization Act (NDAA) compliant. It targets three drone industry segments: retail sales, enterprise components, and fleet and airspace management software as a service, according to its investor presentation.
"Unusual Machines seeks to be a dominant component supplier to the fast-growing, multibillion-dollar U.S. drone industry and the global defense business," Evans wrote in his May 8 letter to shareholders.
As for retail, the manufacturer sells its products via diversified brands. One is Fat Shark, the leader in FPV, ultra-low latency video goggles for drone pilots. Another is Rotor Riot, through which the company retails small, acrobatic FPV drones and equipment directly to consumers through a curated e-commerce store. Unusual Machines already is selling components at scale and to a broad range of retail consumers.
As for the enterprise segment, it consists of hardware parts Unusual Machines makes then sells business-to-business (B2B). These components include a flight controller, an electronic speed controller and an analog camera. As of March 2025, 13% of total revenue came from enterprise sales.
"The company is in a great position to capitalize on enterprise sales and take advantage of the regulatory environment and macroeconomic factors to rapidly scale," wrote Evans.
As for the third segment, the company intends to provide software to complement its hardware once its acquisition of Aloft Technologies Inc. closes. In the drone fleet and airspace management sector, Aloft powers 70% of all Federal Aviation Administration-approved Low Altitude Authorization and Notification Capability (LAANC) airspace authorizations in the U.S.
According to Litchfield Hills Research Analyst Barry Sine, UMAC is well-positioned to capitalize on the growing use of drones in military applications and uncertainty concerning tariff policies. Increasing drone use, particularly by military; U.S. restrictions on drone and drone parts imports, especially from China; and a robust ($1 trillion-plus) U.S. defense budget for fiscal year 2026 are creating a domestic market opportunity upon which Unusual Machines could seize, he purported in a May 9 research report.
Components Market Expanding
The global drone components market is forecasted to experience an 11.4% compound annual growth rate (CAGR) through 2028, according to Tech Sci Research. Increases in the number of industries using drones and in the various applications of drones will continue to fuel the market's "robust growth."
North America buys the most drone components in the world, and China manufactures most of the world's essential drone parts, reported the Center for Strategic and International Studies.
As for drone motors, however, North America dominates the world's production, Future Market Insights pointed out in a report. Last year, the continent had a 40%, or $966.2 million ($966.2M), share of the $2.4 billion ($2.4B) global market, according to Cognitive Market Research.
Through 2032, the North American drone motors market is projected to see an 18.7% CAGR. In comparison, during the same forecast period, the CAGR for the global drone motors market is 16.8%, indicating "unprecedented growth" to $16B, according to Cognitive. One contributor to growth will be escalating demand for high-performance motors that can fly longer, can perform better and/or can withstand the stress of continuous operation. Another will be ongoing drone motor technological advancements.
The Catalyst: Revenue Growth
Unusual Machines aims to continue increasing revenue, it notes in its investor presentation. Planned strategies are to expand its product offerings and B2B hardware sales, build out its drone motor production capabilities, close the Aloft acquisition and integrate Aloft's team into its own.
Longer term, UMAC aims to continue developing and supporting Blue UAS Framework components for defense market customers, launching integrated hardware and software solutions for the domestic enterprise market, expanding its offerings to create full product suites for defense and commercial customers, and pursuing additional acquisitions.
Passage of the U.S. Department of Defense's roughly US$1 trillion budget for fiscal year 2026 could catalyze UMAC, wrote Sine. The expected earmarking of a substantial amount of funds for drone-related technologies in the upcoming NDAA could do the same. Both are expected to spur increased drone parts sales for this U.S.-based manufacturer.
Stock is a Buy, Likely to Advance
In the several days leading up to June 5, UMAC had a big volume runup, suggesting a price breakout above the resistance level is likely to happen, Technical Analyst Clive Maund wrote in a note of the same date. The stock's concurrent accumulation line breakout indicates the price is "very likely" to advance.
If the price breaks above the resistance at the top of it, he added, it is likely to target the next significant resistance level, about US$11.
"We therefore stay long," Maund wrote. "It is thought best not to do any buying here simply because the precious metals sector is THE place to be right now."
According to Litchfield Hills' Sine, Unusual Machines is positioned "to capture higher-margin opportunities as domestic production scales." In his latest report, he highlighted the company's solid Q1/25 topline performance, exceptionally strong balance sheet and expanding manufacturing abilities.
"Given the cash position, limited cash burn, improving revenues and diversified shareholder base, we believe the company is in a very strong position to grow quickly throughout 2025," Sine wrote.
Looking to the rest of 2025, Sine expects retail sales to increase by about 15% year over year and enterprise sales to rise, too. As for an estimate on when Unusual Machines will turn EBITDA positive, Sine estimates Q4/26 whereas CEO Evans forecasts between Q2/26 and Q4/26. A more specific target in this range depends on both the status of the enterprise market and tariff policies in H2/25.
Sine rates Unusual Machines Buy and has a price target on it implying a 207% return.
Ownership and Share Structure
According to Refinitiv, seven insiders own 8.37% of Unusual Machines. They are CEO Evans, Chief Financial Officer Brian Hoff, Chief Operating Officer Andrew Camden and all four directors.
Numerous institutional investors, including The Vanguard Group and BlackRock Institutional Trust Co., hold 4.9%. The rest is in retail.
Unusual Machines has 24.83 million (24.83M) outstanding shares and 22.75M free float traded shares. Its market cap is $182.01M. Its 52-week range is $1.13–23.62 per share.
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Important Disclosures:
- Unusual Machines Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Unusual Machines Inc.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee.
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