Donald Trump Jr. linked Unusual Machines Inc. (NYSE:UMAC) secured its largest Pentagon contract to date.
Check out the current price of UMAC stock here.
Allen Evans, CEO of the drone and components manufacturer, told the Financial Times that Trump Jr. "did not advise or do anything else on this deal".
“Don has never communicated with anyone in the administration on behalf of Unusual Machines or about the contract in question,” a spokesperson for Trump Jr. said.
Pentagon Awards Major Drone Contract
Unusual Machines, located in Florida, was hired by the U.S. Army to produce 3,500 drone motors and other drone components.
Next year, the army said, it would place another order for 20,000 parts from the company.
Although Evans did not disclose the contract value, he said he believes it is the company's largest U.S. government order to date.
Trump Jr.’s Advisory Role And Holdings
Trump Jr. joined Unusual Machines as an adviser in November 2024. The company disclosed he 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.
Market Performance, Stock Movement
The technology company, with a market capitalization of $425.02 million, has seen its shares fluctuate in 2025, falling 23.66% year-to-date while gaining 110.49% over the past six months.
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Shares had skyrocketed more than 375% in the month following news that Trump Jr. was joining its advisory board in November 2024.
Pentagon’s Drone Expansion Strategy
The purchase, which was made public last week, 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.”
According to reports, 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."
Defense Contracts And Manufacturing Growth
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 said tariffs contributed to a $3.3 million operating loss in the first quarter, according to the Financial Times.
The company also acquired Australia-based Rotor Lab in June for $7 million to enhance motor production and U.S. manufacturing capabilities.
Needham analyst Austin Bohlig in August rated the company a Buy, citing its positioning as a key U.S. supplier in the reshoring drive for drone components amid defense demand.
Unusual Machines also secured an $800,000 order from Red Cat Holdings Inc. (NASDAQ:RCAT) in October for NDAA-compliant components for defense applications.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
