AIRO Group Holdings (NASDAQ: AIRO) saw its stock soar 5.13% in pre-market trading on Tuesday, continuing its impressive run following the company's recent IPO and strong financial results for 2024. The drone maker's shares have been attracting significant attention from retail investors, despite initial weak demand for its IPO.

AIRO Group reported over 100% revenue growth in 2024, with total revenues surpassing $86 million. This remarkable growth was primarily driven by increased demand for the company's military drone equipment and services, particularly its RQ-35 Heidrun surveillance drones. The company's Drones segment, which is its largest, generated over $75 million in revenue last year.

Analysts attribute the stock's strong performance to several factors, including the growing interest in drone technology for military applications, increased global defense spending, and the potential impact of recent geopolitical events. Renaissance Capital analyst Matthew Kennedy noted, "The success of Ukraine's recent attack on Russian airfields using drones has made a strong case for this company's products. The escalating conflict in the Middle East may also fuel future demand."

While AIRO Group is still unprofitable, its significant revenue growth and strong backlog in its Electric Air Mobility segment, with over 300 eVTOL aircraft orders, suggest promising future prospects. The company's focus on cargo transportation and its patented Slowed Rotor Compound technology position it for potential certification by 2027, further fueling investor optimism.