Unusual Machines Inc. (UMAC:NYSEAMERICAN), through its online retailer Rotor Riot, supplied 67% of the components for the U.S. Army's 101st Airborne Division's new, internally assembled Attritable Battlefield Enabler (ABE) 1.01 drone, reported Barry Sine, analyst at Litchfield Hills Research, in an Oct. 14 research note. This was evidenced in photos from the 101st's public display of its expendable drone on Oct. 13.
"For UMAC, this signals not only brand validation among institutional buyers but also strategic differentiation in a competitive drone component market, reinforcing [the company's] growth potential in both the commercial and defense sectors," Sine wrote.
63% Return Implied
Litchfield Hills reiterated its US$25 per share target price on the U.S.-based drone components manufacturer, trading at the time of Sine's report at about US$15.35 per share, the analyst noted. From this share price, the return to target is 63%.
UMAC remains a Buy.
The defense company has 30.4 million shares outstanding, a market cap of US$467.4 million and a 52-week range of US$1.43–23.62 per share.
Key Differentiator
The U.S. Army's Screaming Eagles having shopped for and purchased drone parts on UMAC's retail platform is significant for the Florida-based drone components manufacturer and seller. For one, it shows that its Rotor Riot division can serve more than just first-person view hobbyists.
RotorRiot.com contains a section dedicated to National Defense Authorization Act-compliant parts, setting it apart from competitors such as GetFPV.com in the military market.
Expanding Market
The 101st Airborne Division was able to do it, to shop for drone parts on RotorRiot.com, thanks to a newer Pentagon policy allowing military units to make small-scale credit card purchases from retailers for such equipment. Now that this unit has made use of the new policy and because the U.S. Department of Defense requires the military to integrate drones into its training programs, it is likely other units will do as the Screaming Eagles did.
"This creates a potential expanding market opportunity for UMAC within the military sector," wrote Sine.
All Parts For US$750
The analyst pointed out two benefits to the 101st of its approach, to acquire the parts online and assemble the drones internally. The total price of the parts needed to build a single ABE 1.01 was US$750, more than three times lower than the commercial alternatives that cost about US$2,400 apiece. This is "a cost-effective approach to rapid prototyping," noted Sine.
Of the US$750, about two-thirds, or US$505.86, went to Rotor Riot. This was for US$170.52 UMAC 2087 Motor, a US$66.76 Brave F7 Flight Controller, a US$132.77 Brave 55A ESC, a US$66.76 Fat Shark Aura Camera and a US$69.05 Fat Shark Aura VTX.
Of the remainder, US$93.52 were spent with Triumph for a nano receiver and a 5.8 GHz antenna; a total of US$150.62 was spent on U.S. Army-manufactured parts: US$28.99 for both an internally 3D-printed frame and Jaw Dropper; and another US$121.63 went to other miscellaneous U.S. Army parts, such as screws and electrical connectors.
"Notably, recent price reductions on RotorRiot.com have lowered the total component cost by 7% to US$700," wrote Sine.
Fast Assembly, Deployment
Along with the price tag, the ability to assemble and deploy the ABE 1.01 drone quickly is beneficial to military users. Soldiers can put one together in about 20 minutes. This is ideal for use in the field for the likes of reconnaissance (it has a camera) and potential combat iterations, including payload applications, in the future.
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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$3,000 and US$6,000.
- 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.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Litchfield Hills Research, Unusual Machines Inc., October 14, 2025
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