Expansion of manufacturing complements live demonstrations and rising revenue momentum
Introduction
Draganfly Inc. (NASDAQ: DPRO | CSE: DPRO | FSE: 3U8), a pioneer in drone innovation, is making significant strides on multiple fronts. The company recently expanded its U.S. manufacturing capacity while simultaneously validating its cutting-edge Commander 3XL and Flex FPV platforms in high-stakes U.S. military exercises. These developments come as Draganfly reports a 37% year-over-year increase in product sales for Q2 2025, reflecting both growing market demand and operational execution. Together, these milestones position Draganfly as a leader in scalable, mission-ready drone solutions built in North America.
Background and Context
With over 25 years of industry leadership, Draganfly has built a reputation for engineering excellence across public safety, industrial, and defense sectors. Its modular drone portfolio ranges from heavy-lift logistics drones to agile FPV reconnaissance systems, providing adaptable solutions for complex missions.
At the same time, U.S. defense policy is shifting decisively toward domestic production. The Department of Defense has called for accelerated drone manufacturing to strengthen national security and reduce reliance on foreign suppliers. Draganfly’s expansion directly supports this goal by increasing its U.S.-based production capabilities while ensuring compliance with defense procurement standards.
Operational Validation at T-REX 24-2
Between August 19–28, Draganfly participated in the U.S. Department of Defense’s T-REX 24-2 exercise at Camp Atterbury, Indiana. Out of hundreds of applicants, only four companies were invited to demonstrate FPV drone capabilities in this rigorous, live-operational environment.
- Commander 3XL: Successfully executed multi-drop payload deliveries using its universal tactical system, proving its value as a battlefield force multiplier.
- Flex FPV: Delivered ultra-low-latency intelligence in GPS-denied and constrained environments, including live “over-the-shoulder” targeting support for allied forces.
Draganfly CEO Cameron Chell stated,
“T-REX 24-2 was an important validation of our UAV systems under operational stress, showcasing the critical versatility and survivability that modern missions demand.”
This event highlighted Draganfly’s position as one of the few domestic manufacturers capable of delivering interoperable, modular, and NATO-aligned platforms that can rapidly adapt to mission needs.
Building Resilience Through U.S. Manufacturing Expansion
In tandem with its operational success, Draganfly announced a significant expansion of its U.S. manufacturing footprint, adding AS9100- and ISO9001-certified facilities through its contract manufacturing partners.
This initiative:
- Strengthens supply chain resilience and redundancy
- Reduces production timelines for mission-critical drones
- Aligns with new U.S. defense directives promoting domestic manufacturing
Chell explained,
“Expanding our U.S. manufacturing footprint helps us deliver faster for our customers while supporting a more secure and self-reliant drone ecosystem.”
Strong Q2 2025 Financial Performance
Draganfly’s growth is further underscored by its Q2 2025 financial results, demonstrating rising demand across defense, public safety, and commercial sectors:
- Revenue: $2.1M, up 22.1% year-over-year
- Product Sales: $1.9M, up 37.1% year-over-year
- Gross Profit: $504,592, reflecting improved operational efficiencies
- Cash Position: $22.57M as of June 30, 2025, compared to $6.25M at year-end 2024
These results reflect expanding market adoption of Draganfly’s platforms, including recent defense contracts and new international partnerships.
Future Growth and Strategic Positioning
Draganfly’s dual advancements—proving its technology in the field and scaling production domestically—create a powerful foundation for future growth. With rising demand for U.S.-made, NDAA-compliant systems, the company is well-positioned to compete for long-term defense and homeland security contracts.
Additionally, its expanding portfolio, which includes demining solutions with SafeLane Global and medical delivery drones for humanitarian missions, aligns with both military and civilian applications. This versatility enhances Draganfly’s resilience in a dynamic market.
Conclusion
Draganfly’s recent progress represents a convergence of operational excellence, strategic foresight, and financial strength. By demonstrating its drones under real-world military conditions while simultaneously expanding its U.S. production capabilities, the company has taken a critical step toward meeting the urgent needs of defense and public safety sectors.
As national priorities shift toward secure, domestic drone production, Draganfly’s proven track record and growing capacity position it as a pivotal player in the evolution of North America’s drone ecosystem.
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