US$12.8M Parts Order Highlights Co.'s Excellent UAV Gains

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Provider of high-performance drone components Unusual Machines Inc. (UMAC:NYSEAMERICAN) announced a US$12.8 million order for parts supporting Strategic Logix's Rapid Reconfigurable Systems Line (RRSL).

The order highlights the increasing demand for NDAA-compliant unmanned aerial vehicle (UAV) solutions that can be deployed at scale to meet operational needs. Unusual Machines is the main supplier of NDAA-compliant components, including its BLUE UAS listed Aura Analog Camera, Aura VTX, Brave Flight Controller, and Brave ESC for the RRSL line.

Developed by Strategic Logix, the RRSL is an interoperable UAV platform with configurations starting at US$800, offering manual, autonomous, and fiber-enabled options. The order includes more than 160,000 components manufactured by Unusual Machines, such as ground control systems, underscoring both the scale of demand and the company's crucial role in enabling production.

"Our mission is clear — get U.S.-made innovation into warfighters' hands faster," Strategic Logix Chief Executive Officer Jeremy Schnipke said. "The RRSL is more than a product line — it's a foundation for partnership. By working alongside Unusual Machines and a coalition that includes defense leaders, we can move with speed today while building the framework for deeper government relationships."

Litchfield Hills reaffirmed its target price of US$20 per share for the U.S. drone components manufacturer, which was trading at US$11 per share at the time of Sine's report. This suggests a potential return of 82% for investors. Unusual Machines remains a Buy.

Production and deliveries are set to begin in the fourth quarter, reflecting careful planning and a rigorous approach to defense requirements. The order also indicates the growing demand for low-cost, adaptable drones.

"We've been deliberate — maintaining the discipline and flexibility necessary to scale with the industry," said Stacy Wright, EVP of Revenue at Unusual Machines. "That foundation lets us execute on short timelines with reliability as demand develops. Strategic Logix's extensive track record of delivering for defense programs aligns perfectly with our role as a reliable link in the U.S.-built supply chain for drone components."

Strategic Logix is a U.S.-based defense innovation and procurement company that leads a coalition of more than 140 small businesses with a shared mission to strengthen U.S. defense manufacturing and deliver low-cost, high-impact solutions directly to the modern warfighter. Founded to accelerate development and acquisitions, the company has evolved into a prime vendor of interoperable unmanned systems and modernization technologies, including its flagship Rapid Reconfigurable Systems Line (RRSL). With a proven track record in transformation, modernization, and innovation, Strategic Logix brings speed, flexibility, and trusted execution to the Department of Defense and allied partners.

Establishing a Key Position in UAV Supply Chain

Headquartered in Florida, UMAC specializes in manufacturing drone components, focusing on first-person view (FPV) systems for both commercial and defense applications. The company aims to establish a key position in the UAV supply chain by providing NDAA-compliant components for cost-effective, remote-piloted drones.

In July, Unusual Machines announced that its Fat Shark Video Transmitter (VTX) received approval from the Defense Innovation Unit for inclusion in the Blue UAS Framework, a designation that ensures cybersecurity compliance for Department of Defense use. The VTX is now part of a growing list of UMAC's core FPV components that meet the standards of this federal procurement program.

The VTX provides analog video transmission, which is well-suited to the new combat paradigm of manufacturing low-cost drones capable of transmitting low-latency video over long distances. As a result, the company said it is expanding its production capabilities with a new 17,000-square-foot motor manufacturing facility in Orlando, scheduled to open in September.

'Moving at the Speed of Crazy'

The company has been "moving at the speed of crazy," according to Chief Executive Officer Allan Evans in several recent investor presentations, as reported by Barry Sine, an analyst at Litchfield Hills Research, in a research note dated September 24.

"Collectively, we believe that these moves set the stage for a step function in growth, with enterprise revenues expected to nearly triple in 2026," Sine wrote.

Litchfield Hills reaffirmed its target price of US$20 per share for the U.S. drone components manufacturer, which was trading at US$11 per share at the time of Sine's report. This suggests a potential return of 82% for investors. Unusual Machines remains a Buy.

Sine provided updated financial forecasts for Unusual Machines for this year and next, highlighting that the company continues to build revenue momentum. Litchfield Hills forecasts full-year 2025 enterprise revenue of US$3.5 million.

UMAC's US$1.6 million goggle and camera order supports Litchfield Hills' revenue estimates for the next three quarters. Adding the revenue from the Brave F7 controller orders should meet or exceed Litchfield Hills' US$2.5 million enterprise revenue forecast for H2/25.

For 2026, Litchfield Hills forecasts US$13.5 million in enterprise revenue, nearly three times its projection for this year. "Importantly, this growth is diversified across at least four major customers — including former parent Red Cat Holdings Inc. (RCAT:NASDAQ) — with two additional Blue List–approved products (a speed controller and first-person view camera) expected to be launched in Q4/25," wrote Sine.

The Catalyst: 'A New Era of Opportunity'

According to Grand View Research, the global drone market was projected to be valued at US$73.06 billion in 2024 and is expected to expand to US$163.60 billion by 2030, with a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030. This growth is primarily driven by rapid technological advancements in drones, improvements in battery efficiency, AI-driven autonomous systems, and enhanced imaging sensors, which are expanding the applications of drones across various sectors, as noted by Grand View.

In 2024, North America led the drone market, capturing over 39% of the 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 demand for drones in emergency response has significantly increased, according to a July 30 commentary from FN Media Group. The emergency responder drone market was valued at US$5.68 billion in 2023 and is projected to grow to US$12.5 billion by 2032. A report from Market Research Future emphasized the growing role of drones in public safety, highlighting advancements in imaging, payload capacity, and battery life. "These trends reflect a broader move toward adopting aerial technologies as essential tools in enhancing public safety and emergency management strategies globally," the firm stated.

Investment in defense innovation is also gaining traction. Bloomberg reported on a new venture capital initiative from Point72 Asset Management. Led by billionaire Steve Cohen, the firm is raising US$400 million for the Deterrence Fund, focusing on early-stage investments in defense, energy, and security.

According to investor documents cited in the report, Point72 plans to invest between US$1 million and US$30 million per startup, emphasizing the need for agile technologies capable of modernizing defense infrastructure. "The opportunity in defense tech investing isn't just bigger than it was in 2023 — it's more urgent," Point72 wrote in a blog post. The firm argued that autonomy, AI, and software-first systems will redefine future conflict.

These developments are part of a broader structural shift across the sector. In an August 2 report for AI Invest, analyst Oliver Blake described the industry as entering a "new era of opportunity" driven by AI, hypersonic technology, and space-based surveillance. He noted that global defense spending rose to US$2.72 trillion in 2024, marking the largest year-over-year increase since the Cold War. In the U.S., military spending reached US$997 billion, supported by policies from both the Trump and Biden administrations.

Ownership and Share Structure

About 7.5% of the company is owned by management and insiders, UMAC said. The rest, 92.5%, is retail and institutional investors.

Unusual Machines has 30.98 million shares outstanding as of October 2, according to Refinitiv. Its market cap is US$460.27 million. Its 52-week high and low share prices are US$23.62 and US$1.28 per share, respectively.