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    U.S. Drone Industry Investment Surging Amid Sweeping Legislative Reforms

    7/31/25 8:30:00 AM ET
    $AVAV
    $DPRO
    $EH
    $KTOS
    Aerospace
    Industrials
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    MarketNewsUpdates News Commentary

    NEW YORK, July 31, 2025 /PRNewswire/ -- A recent article from drone industry insider, Dronelife.com, said that: "The drone industry in the United States is experiencing a surge in investment and capital flow, as a series of legislative measures and executive directives reshape the procurement and manufacturing environment for both established and emerging drone companies. Recent months have brought a flood of funding announcements, with sector analysts citing a direct connection to strengthened national policy and focused government demand."  It continued: "May through July 2025 have seen major investment rounds for American drone manufacturers and allied suppliers. Standout examples include Firestorm Labs' $47 million Series A—led by major defense and technology investors—intended to accelerate domestic, modular drone production for federal contracts. Quantum Systems, a key player in dual-use and military aviation technologies, completed a €160 million Series C round in May 2025, further underlining investor appetite for companies positioned to serve government needs. Likewise, Unusual Machines (UMAC) witnessed a dramatic 40% surge in its stock price following announcements of expanded Pentagon procurement budgets and relaxed purchasing rules.  High-profile public offerings, such as AIRO Group's successful IPO in June, have been accompanied by substantial private and public funding across the sector, with analysts on platforms like Nasdaq noting a sharp spike in capital formation and confidence among U.S.-based drone firms."  Active Companies in the Drone Industry today include ZenaTech, Inc. (NASDAQ:ZENA), EHang Holdings Limited (NASDAQ:EH), AeroVironment, Inc. (NASDAQ:AVAV), Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), Draganfly Inc. (NASDAQ:DPRO).

    MarketNewsUpdates.com  |  Engaging Premium News Dissemination Services For Emerging Public Companies

    Dronelife.com also discussed The Legislative Engine Behind The Sector's Momentum, saying that: "This wave of investment activity is not happening in a vacuum. It traces directly to a package of legislative and regulatory moves in Washington, including: Executive Order: "Unleashing American Drone Dominance" (June 2025), which mandates prioritization of U.S.-made drones for all federal agencies, streamlines procurement processes, and introduces targeted funding lines for "consumable" drone assets. - DoD Procurement Directive (July 2025), which accelerates purchase timelines and expands budgets, ensuring military branches can rapidly deploy domestically produced drone platforms. - FY2025 National Defense Authorization Act (NDAA) and accompanying tariffs and restrictions, which impose new barriers on foreign drones and provide direct grant support to American manufacturers. - Grant Programs under new acts, allowing state and municipal agencies to tap federal funding for the procurement of American drones, exponentially widening total addressable demand." It concluded: "These sweeping actions have collectively signaled to investors that government commitment to domestic drone production is not only robust but rapidly escalating. Multiple funding announcements and investor statements specifically cite these legislative shifts as underpinning new rounds of capital deployment."

    ZenaTech (NASDAQ:ZENA) ZenaDrone Initiates AUVSI Membership Upgrade, Enabling Leadership on Drone Policy and Strengthening US Defense and Government Engagement - ZenaTech, Inc. (FSE: 49Q) (BMV:ZENA) ("ZenaTech"), a business technology solution provider specializing in AI (Artificial Intelligence) drones, Drone as a Service (DaaS), Enterprise SaaS, and Quantum Computing solutions, today announces its drone subsidiary ZenaDrone has initiated upgrading its membership to the Advocacy level with the influential  Association for Uncrewed Vehicle Systems International (AUVSI), enabling it to join both the Defense Advocacy Committee and Air Advocacy Committee. This upgrade enables the company to engage alongside top US drone and defense innovators, such as Skydio, Anduril, Leidos and Shield AI, to elevate its leadership role in shaping critical drone policy and procurement as well as deepening relationships with important stakeholders and decisionmakers.

    "This is a clear investment in speed to market and long-term procurement success," said Shaun Passley, Ph.D., ZenaTech CEO. "By joining AUVSI's Defense and Air Advocacy Committees, ZenaDrone gains direct access to the policy, compliance, and acquisition conversations that shape Department of Defense agency procurement. It positions us alongside trusted defense leaders and innovators, accelerating our path to Green and Blue UAS certification by strengthening our ability to meet the security, interoperability, and regulatory expectations of federal buyers and leverage growth opportunities."

    Through an upgraded Advocacy membership, ZenaDrone will be able to collaborate with AUVSI's network of industry leaders and regulators to influence federal drone policies and shape the future of the drone industry in the US. This participation provides direct access to federal decision-makers, enabling influence on key policy areas such as BVLOS (Beyond Visual Line of Sight) regulation and streamlined procurement, while ensuring the company's drone platforms remain aligned with the evolving operational needs and priorities of US defense and government agencies.

    This involvement comes at a pivotal time, as recent Executive Orders and policy directives from the White House and Department of Defense accelerate support for NDAA-compliant, secure, and domestically produced drone technologies. These directives now move toward implementation, requiring practical policy frameworks and procurement processes—an area where ZenaDrone aims to contribute meaningfully.

    Founded in 1972, AUVSI is the largest nonprofit advancing uncrewed and autonomous systems through innovation, policy, and collaboration. It connects government, industry, and academia to drive safe, efficient integration of emerging technologies. The Air Advocacy Committee shapes policies to expand drone operations in national airspace, while the Defense Advocacy Committee influences defense acquisition policies and promotes NDAA-compliant drone technology.  Continued…  Read this full release and additional news for ZENA by visiting:  https://www.zenatech.com/newsroom/

    Other developments in the drone/UAV & Military industries include:

    Draganfly Inc. (NASDAQ:DPRO), an award-winning developer of drone solutions and systems developer, recently announced the sale of Commander 3XL Unmanned Aerial Vehicle (UAV) systems to a globally recognized defense contractor specializing in persistent surveillance technologies for military operations.  A trusted partner to U.S. and allied defense forces for decades, the client is one of the world's leading providers of persistent surveillance platforms. Its systems are deployed across key Department of Defense (DoD) and allied installations, delivering reliable, persistent intelligence, surveillance, and reconnaissance (ISR) capabilities.

    The Commander 3XL's modular payload architecture, extended endurance, and AI-enabled mission control make it an ideal asset for military-grade surveillance programs. The systems will support perimeter security, early warning, and real-time situational awareness, operating seamlessly alongside and integrated with persistent platforms and ground-based command centers.

    EHang Holdings Limited (NASDAQ:EH), the world's leading urban air mobility ("UAM") technology platform company, recently announced that it has entered into a strategic partnership agreement with Reignwood Aviation Group. Leveraging their respective strengths, the two parties will collaborate under China's national strategy for developing the low-altitude economy, guided by the principles of technology empowerment, scenario-driven innovation, and global expansion. Together, they aim to set a global standard for integrating traditional general aviation with next-generation electric vertical take-off and landing ("eVTOL") aircraft.

    According to the agreement, Reignwood Aviation Group plans to deploy eVTOLs at scale, prioritizing at its operational hubs in key cultural and tourism destinations. The partnership will begin with consumer-facing applications such as low-altitude tourism and related ground services. Over time, the cooperation will further expand to UAM field to build a three-dimensional urban transportation network. In the long term, the two parties aim to expand to more scenarios and low-altitude services including passenger transportation, aerial logistics, emergency response, etc.

    AeroVironment, Inc. (NASDAQ:AVAV), a global leader in intelligent, multi-domain autonomous systems, recently revealed Skyfall—a potential future mission concept for next-generation Mars Helicopters developed with NASA's Jet Propulsion Laboratory (JPL) to help pave the way for human landing on Mars through autonomous aerial exploration. The concept is heavily focused on rapidly delivering an affordable, technically mature solution for expanded Mars exploration that would be ready for launch by 2028.

    Skyfall is designed to deploy six scout helicopters on Mars, where they would explore many of the sites selected by NASA and industry as top candidate landing sites for America's first Martian astronauts. While exploring the region, each helicopter can operate independently, beaming high-resolution surface imaging and sub-surface radar data back to Earth for analysis, helping ensure crewed vehicles make safe landings at areas with maximum amounts of water, ice, and other resources. The data Skyfall collects could also advance the nation's quest to discover whether Mars was ever habitable.

    Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), a Technology Company in the Defense, National Security and Global Markets, recently announced that it will publish financial results for the second quarter 2025 after the close of market on Thursday, August 7th. Management will discuss the Company's operations and financial results in a conference call beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern).

    The call will be available at www.kratosdefense.com. Participants may register for the call using this Online Form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN that can be used to access the call. For those who cannot access the live broadcast, a replay will be available on Kratos' website.

    DISCLAIMER:  MarketNewsUpdates.com (MNU) is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. MNU is NOT affiliated in any manner with any company mentioned herein. MNU and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  MNU'S market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material.  All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. MNU is not liable for any investment decisions by its readers or subscribers.  Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. MNU HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

    This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MNU undertakes no obligation to update such statements.

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