Unusual Machines (NASDAQ:UMAC) is poised for growth as a key U.S. supplier in the reshoring of drone components, with defense demand and government-backed investment expected to boost revenue sharply over the next two years. Needham analyst Austin Bohlig initiated coverage with a Buy rating and $15 price forecast, projecting revenue to climb from $10 million in 2025 to $25 million in 2026. UMAC is positioned to benefit from the U.S. shift away from Chinese parts in the booming small, low-cost unmanned aerial systems (UAS) market, with a forecasted share of the $620 million U.S. component market by 2026. The company’s growth is driven by defense contracts, consumer adoption, and the surge in drone usage for military applications. Bohlig sees the U.S. entering a historic supercycle for small UAS, with recent conflicts highlighting the strategic importance of drones in modern warfare. The Trump administration’s focus on unmanned systems includes allocating over $15 billion to unmanned platforms in the fiscal 2026 defense budget, with a significant portion for small UAS. The Purpose-Built Attritable Systems (PBAS) program, valued at over $500 million, is a key catalyst for UMAC’s growth, with the company uniquely positioned to benefit from its components being used by more than half of the bidding firms. Financially, Bohlig projects revenue to grow 79% year-over-year to $10 million in 2025, with a sharper ramp expected in 2026 to $25 million, driven by defense contracts and consumer adoption. Gross margins are forecasted to improve, with adjusted EBITDA losses expected to decline until profitability is reached in 2027 at a $44 million revenue run rate. UMAC shares are currently trading lower but are expected to benefit from the company’s strong positioning in the growing UAS market.

Read more at Yahoo Finance: Unusual Machines Seen As Key Winner From America’s Push To Cut China Out Of Drone Supply Chain