Unusual Machines Inc. Secures Biggest Pentagon Contract Yet
Unusual Machines (NYSE: UMAC), a drone and components manufacturer located in Florida, reportedly won a Pentagon contract on October 15th to produce 3,500 National Defense Authorization Act-compliant motors for the U.S. Army, which will power the 101st Airborne Division’s deployment of new Attributable Battlefield Enabler (ABE) V1 drones.
Next year, the army said it would place another order for 20,000 parts from the company. The tactical, low-cost drones are designed for battlefield reconnaissance and surveillance - plans for the ABEs to carry lethal payloads have also been submitted for review and approval. Although CEO Allen Evans did not disclose the contract value, it is believed to be the company’s largest U.S. government order to date.
With a market capitalization of approximately $425.02 million, Unusual Machines, which was founded in 2019 and went public in February 2024, has seen its shares fluctuate this year, falling 23.66% year-to-date while gaining 110.49% over the past six months.
Shares had skyrocketed more than 375% in the month following news that Donald Trump Jr. was joining its advisory board in November 2024. At the time, the company disclosed that Trump Jr. owned 331,580 shares, currently worth roughly $4 million. Evans said earlier this year that Trump Jr. had continued to invest in recent fundraising rounds, however Trump Jr. “did not advise or do anything else on this deal”.
Trump Jr. also holds an executive position at 1789 Capital, a venture capital firm that has invested in Firehawk Aerospace, SpaceX, and Anduril. All three companies have obtained contracts with the Pentagon.
The army’s purchase follows an executive order signed by President Donald Trump in June to support the development of the U.S. drone industry for both military and commercial applications. Pete Hegseth, the defense secretary, has taken action to speed up the manufacture and use of military drones. Regarding the purchase, 101st Airborne Division Chief Warrant Officer 4 John Brown stated: “The ability to train like we fight, using drones that are reliable… gives our soldiers the confidence they need for real-world scenarios.” Army Secretary Daniel Driscoll said earlier this month that his service is leading the Pentagon’s counter-drone efforts and “will equip soldiers with these kinds of expendable drones that deliver devastating effects at a massive discount.”
Unusual Machines struck deals with other U.S. defense suppliers in recent months, including a $12.8 million agreement with Strategic Logix in September and a $1.6 million deal with an unnamed domestic defense drone maker in August. The company claimed that tariffs contributed to a $3.3 million operating loss in the first quarter.
The company also acquired Australia-based Rotor Lab in June for $7 million to enhance motor production and U.S. manufacturing capabilities and secured an $800,000 order from Puerto Rico-based Red Cat Holdings Inc. (NASDAQ:RCAT) in October to develop a fleet of unmanned aircraft carriers, complete with autonomous drones, anti-aircraft missiles and torpedoes - positioning the company as a key U.S. supplier in the reshoring drive for drone components amid continued defense demand.