Dear Shareholders, Dear Investors,
We usually use this part of our report to write about revenue growth, profit, new contracts and other financial indicators. The first half of 2026, however, cannot be assessed solely through the financial statements. In the eleven years since Primoco UAV SE was founded, we have never experienced a period of such intensity or one that has transformed our Company so fundamentally in such a short time.
The Company today is no longer the same company it was a year ago. We have grown not only in terms of the volume of contracts and the number of employees, but above all in our capabilities, organisation, infrastructure, technologies and the scale of projects for which we can compete. And we consider this to be the most important development of the first half of 2026.
First-Half Results and Outlook for 2026
In the first half of the year, the Company generated revenue of CZK 101 million and EBITDA of CZK 42 million. Revenue in the second quarter remained comparable to the first quarter, primarily as a result of the production and customer delivery schedule for our aircraft. A substantial part of this year’s production will only be reflected in the Company’s results in the second half of the year. A total of 30 unmanned aircraft for European customers will be delivered during this period. Despite this timing of deliveries, the Company remained profitable in the first half of the year.
For the full year 2026, we expect consolidated revenue of between CZK 900 million and CZK 1 billion and EBITDA of between CZK 225 million and CZK 300 million. Compared with 2025, we therefore expect the Company to approximately double in size.
From a Small Company to an Industrial Enterprise
Over the past year, we have completed one of the most significant organisational transformations in the Company’s history. The Company has grown from a small business managed by a very lean team into a medium-sized industrial enterprise. We have adapted the way it is managed accordingly.
The Company’s management team now consists of nine people. Among other positions, we have added a Marketing Director, HR Director and Project Director and completed an organisational structure that clearly defines the responsibilities and competencies of individual members of management. This is not simply about increasing the number of managers – we are building a structure capable of managing a Company facing substantially higher production volumes, more complex international projects and further technological development.
Our new facilities reflect this transformation. During the first half of the year, the Company’s management relocated from the production site in Prague-Radotín to new office premises in Prague-Modřany. The production facilities in Radotín can therefore focus fully on their primary purpose – the manufacture of unmanned aircraft.
Our Own Airfield and New Training Centre
One of the most visible results of the past twelve months is the completion of the new training centre at our own Písek-Krašovice airfield.
Following a year of construction work, we have built infrastructure comprising a new hangar, a training centre, renovated buildings, service roads and additional technical and operational facilities. The project also included the demolition of the original redundant structures, project preparation, construction supervision and the complete equipping of the site. The Company’s total investment in the airfield reached CZK 69 million.
The opening ceremony was attended by representatives of the Government of the Czech Republic, the Czech Armed Forces, international guests, customers and the Company’s business partners. For the Company, however, this is not an investment made for appearances – it is first and foremost a key part of the infrastructure we need for our continued growth. The ability to offer customers not only the aircraft itself, but also training, operational support, servicing and comprehensive know-how is becoming an increasingly important part of our product.
The First ATO of Its Kind
In May, the Company became the first of its kind in the world to obtain an ATO certificate for an unmanned aircraft training centre. Alongside our DOA and POA approvals, this represents another key element of the certification framework and capabilities that we have been systematically building over recent years.
At first glance, individual certifications may appear to be an administrative matter. In reality, however, they represent a significant competitive barrier in our industry. Obtaining them requires time, experience, technical capabilities, extensive documentation and, above all, a demonstrably functioning system across the entire Company.
Preparing Production for the Next Stage
In April, we obtained a building permit for the construction of a new manufacturing facility, which we plan to develop into one of the most advanced unmanned aircraft production facilities in Europe. The tender process for the general contractor is currently underway. We plan to commence construction work in January 2027.
To date, we have invested a total of CZK 26 million in project documentation, archaeological surveys and related preparatory work. The anticipated investment in the construction itself is approximately CZK 500 million, with a further approximately CZK 100 million planned for production technologies and machinery.
Our intention is to finance this strategic investment primarily from the Company’s own resources, without the need for external debt. Our strong financial position allows us to plan the Company’s further development while maintaining financial stability and a high degree of independence.
We are not investing in production capacity for the Company we are today – we are investing in the capacity we will need for the Company we are building for the decade ahead.
The Future Is Not Built in Production Alone
Without continuous development, we would not be able to secure the Company’s long-term future. We therefore reinvest a significant proportion of our resources and capacity in the Primoco One 150 product and its capabilities.
After more than two years of intensive development, we are completing a new generation of combustion engine for the Primoco One 150, which is now undergoing flight testing. At the same time, we are completing new aircraft control systems, a fuel tank and a range of other structural and technological components.
These changes are not always visible at first glance. They are, however, fundamental evolutionary steps that further enhance the safety, reliability and technical performance of the entire system.
Alongside our own development activities, we collaborate on projects with leading European and multinational technology companies. These include, for example, cooperation with Airbus and Defence on the MARS project, as well as projects with Deutsche Telekom and other partners. Our ability to integrate new technologies, sensors, communication systems and other equipment is one of the main reasons why the Company can now participate in projects that were beyond our reach only a few years ago.
Business Opportunities on a New Scale
Ten years ago, our commercial objective was to sell a single system – three unmanned aircraft, a ground control station, sensors and related equipment worth approximately EUR 2 million. At the time, such a contract represented an exceptional success for us.
Today, we are working on projects whose potential value to the Company, if successful, ranges from tens of millions to hundreds of millions of euros. This is perhaps the clearest illustration of the transformation the Company has undergone in recent years. Europe remains our primary market, while at the same time we are developing business opportunities in Asia and the Middle East.
Given the nature of our customers, commercial negotiations and procurement processes, we cannot comment in greater detail on individual opportunities before they are concluded. We can, however, say that the scale of the projects, their technological complexity and customer requirements are now incomparable with those we were dealing with five or ten years ago.
The Company holds NATO STANAG certification, has references from real-world operations, its own production and training infrastructure, the necessary approvals and, at the same time, is a transparent, publicly traded European company. We have spent many years building each of these elements. Together, they now enable us to participate in tenders that would have been virtually beyond our reach only a few years ago.
Growth Also Brings Complex Situations
The first half of the year was not solely a period of investment, certifications and commercial growth. Following the Company’s General Meeting in January, shareholder Gabriel Fülöpp filed a lawsuit against Primoco UAV SE challenging the validity of the General Meeting. We informed shareholders of this matter separately and transparently. As a publicly traded company, we consider it our duty to communicate not only positive developments but also disputes and matters that materially affect the Company. The Company will address this matter through the standard legal process and defend both its decisions and the interests of its shareholders. This matter has no impact on the Company’s operations, production, fulfilment of contracts or our long-term strategy.
Security and Protection of Know-How
As the Company grows and the importance of our technology increases, so too does our responsibility to protect it. European technology and defence companies today face cyberattacks, industrial espionage and activities by foreign powers. Over the past year, the Company has therefore invested significantly in physical and cybersecurity, data protection, communications and the protection of its own know-how. The Company has also made fundamental progress in this area – security is no longer a collection of individual measures, but an integral part of the Company’s management.
Capital Market Developments
Monitoring the Company’s market value is as important to us as it is to you. During the first eight months of 2026, the Company’s share price declined by 35%, while the value of shares traded decreased to CZK 290 million (compared with CZK 364 million in the same period of 2025).
This development reflects a combination of several factors in the capital market. In addition to the lower overall liquidity of the Prague Stock Exchange, the share price was affected by sales of shares by two significant shareholders. In a market with limited liquidity, even a relatively small volume of shares offered for sale can exert significant downward pressure on the share price, without in any way reflecting the Company’s actual economic condition or fundamental value.
In the short term, the market price of shares often responds to these technical and supply-side factors.
For a broader perspective, it is important to recall that the subscription price at the time of the IPO in 2018 was CZK 250 per share. The annual high was CZK 1,150, while the share price currently remains above CZK 700. This development demonstrates not only the long-term appreciation since the Company’s stock market debut, but also the exceptional volatility the shares are currently experiencing.
Our role is not to manage the short-term share price, but to create long-term value for the Company. We believe that completing the planned deliveries of 30 aircraft in the second half of the year, further expanding production capacity, investing in technology and executing the international projects currently under development will be the best response to current capital market developments.
Eleven Years of Building
When we founded the Company eleven years ago, we had no manufacturing facility, no airfield of our own, no certified aircraft and no international references. We had no LUC, STANAG, DOA, POA or ATO. And we certainly were not discussing projects worth tens or hundreds of millions of euros. What we did have was a clear vision that Europe could develop its own unmanned aircraft capable of competing technologically on the global market.
Today, we have eleven years of work, development, certifications, investment, successes and lessons learned behind us. The first half of 2026 was perhaps the most intensive of them all. The financial statements for the first half capture only part of this story. The 30 aircraft that will be delivered to European customers in the second half of the year are not yet reflected in them. The new factory is not yet reflected in them. The results of more than two years of development of the new-generation engine are not reflected in them. Above all, they do not reflect the value of the business opportunities on which we are currently working intensively.
This does not mean that we take their future success for granted – quite the opposite. As contracts increase in size, so too do their complexity, competition, decision-making timelines and the Company’s responsibility towards its customers and shareholders.
We know that the next stage of the Company’s development will in many respects be more demanding than the previous one. At the same time, we are entering this stage as a substantially stronger Company:
- We have a proven product, valid certifications and references from real-world operations.
- We have our own airfield and training centre, and we are building new production capacity.
- We have an experienced management team and continue to invest in the technologies that will determine the competitiveness of our aircraft in the years ahead.
- We have business opportunities on a scale that we could only have contemplated a few years ago.
- We have an exceptionally strong financial position. As of today, we have approximately CZK 275 million in bank accounts and a further CZK 132 million in receivables. The Company’s total assets exceed CZK 1 billion. As of today, our revenue totals approximately CZK 431 million. The Company is debt-free and has financed its growth, development and investments to date from its own resources.
This is the most important result of the first half of 2026 for us.
We thank our employees, customers, partners and you, our shareholders, for your continued trust.
Yours sincerely,
Ladislav Semetkovský
Petr Kováč
Romana Wyllie