She said, "My CFO, Allison Geiger, is right here in the room, so any tough financial questions, I'm going to vector over to her. Of course, I'm expecting at least 100 of those. Obviously, public disclosures. What are we about? Eagle NXT is fundamentally a remote sensing company. We design and deliver drones, a Type 1 drone, or a Class 1, as they're called, the smallest type drone there is. It's a fixed-wing variety, a delta-wing kind of configuration. We'll talk about in a few minutes what are the advantages of that. We also have a line of multispectral cameras that we sell primarily to the agriculture market, but they've also found use in the military for things like IED detection and landmine detection. We have a noble mission. Our mission is about protecting what's most important, and that is land, lives, and pursuit of peace.
That's a mission statement we just established a few months ago when we went through a rebranding. We were formerly called AgEagle, so if you knew of us in the past, it's likely that you knew us as AgEagle. That's still our legal company name, AgEagle Aerial Systems Inc. Why did we rebrand to Eagle NXT? One of the first questions I was asked by investors when I joined the company, which was February of 2024, was, "You guys have branched so far beyond the agriculture market. Why do you still call it AgEagle?" I really thought about it. It was a great question, actually, and that was not the only time I was asked. We've moved. We worked through a rebranding with a rebranding company to define who we are going forward.
We chose Eagle NXT because it honors the legacy of the company, keeping Eagle in the name, and it also indicates we're going in a brand new direction, right? We're still supporting agriculture, civil and commercial, public safety, but we're really focused from a growth perspective on the military market. We've got new products that are out there. I think I accidentally skipped a chart there. Just a couple of things. Here are our drone products and our camera products. As I mentioned, a remote sensing company. I'm not going to dwell on the technical aspects of it, but I do want to share a few key points about our drones when we get to that chart in a couple minutes. Allison and I, working with our leadership team, have really put some fundamental operating procedures in place for the company, which in the past it didn't really have.
If you take a look at our financials across the years, what you're going to see is we have restabilized the company. The stock has stabilized, and now it's in a growing mode over the last few months. We've cleaned up our balance sheet. We have cash in the bank, and we don't need to do a super near-term capital raise, and we've got our eyes on a couple of acquisition targets. Some of the key things about the company, it's been in place since 2010, so we're not a newcomer in the drone market. We've been around since 2010, and we're continuing to grow. We've got five proposals into the U.S. government right now waiting for award. We expected those to hit in September.
They didn't because of the funding challenges that everybody knows about, so we're expecting one or two of those to be awarded before the end of the year once Congress gets over their funding issues. We've put a brand new leadership team in place, particularly on the global sales side. A gentleman named Steve Matthias has joined our sales team. He is a former Army pilot, retired Lieutenant Colonel, flew in the special ops portions of the U.S. Army called the 160th, and he brings a whole lot of industry experience as well. He was a global sales leader for Bell Helicopter, particularly on the military side. He stayed with them, I think, for about 11 years, and then he left and went to another company called GKN. One of his employees, he brought in a new Army-qualified drone operator as well. We've really restructured to go after the market.
We've got some key teaming agreements that are in place. I already mentioned our mission, but this is kind of how we view our ecosystem. As I mentioned, flight hardware, sensors, control software. We've announced a couple of key partnerships, which are really important to the company. Back in, if I remember correctly, it was June or so, we announced a partnership with an Israeli company to do automated flights from a swarming operational perspective, meaning we would have three to five drones flying at once, controlled by AI software, doing detection of border crossings. That was announced a few months ago. That development is underway on our eBee VISION platform. We also have an advanced development on an anti-jam capability, which we expect to roll out in production in a couple of months. We have a partnership that we just announced with a company called Tough Stump Technologies.
What they do is they focus mostly on the special operations community, but they are a training expert, they are a certification expert, and a maintenance-type company. They've also rolled our system into a larger system called the Helios system, where they bring added capability to offer to the market. They are one of our partners for these five U.S. government proposals that are pending. These are our two older drone types. The eBee X was the first one that we, not the first one, it's the oldest one that we currently have still for sale. The eBee X is used for detailed photogrammetry, think 3D survey down to like the 3-centimeter fidelity level. A great tool. It's been used for every application you can imagine, from mining to construction to special operations. The eBee TAC takes the eBee X and starts to add a surveillance capability to it.
That brings us to the eBee VISION. We started investing in this about three and a half years ago, announced it was ready for production at the end of 2023, got our first significant sales in 2024 with the largest contract the company ever won, selling to the French Ministry of Defense. That was a $3.5 million contract. We are expecting, as we continue to service this aircraft for the French Ministry of Defense, we're expecting a follow-on order, and time has to play out. This is a great system. If you ask what distinguishes us and differentiates us from most drone providers, most people think of, when they think of a drone, they think of a quadcopter, right? Four propellers, launches vertically, lands vertically, can fly in any direction, and you can make it hover. Obviously, we chose a different design approach. We are a fixed-wing drone.
What distinguishes us is we can fly for 90 minutes, and that's a no-kidding 90 minutes, fully mission-equipped. You take it out of the package as is, I can fly over a 90-minute mission. A typical drone, same size in a quadcopter category, is 45 to 50 minutes. We've got double the flight time. We can cover a huge amount of area comparatively. The other thing that really sets us apart is this thing is incredibly easy to use. You basically launch it like a frisbee. It'll climb to 250 feet. It'll circle until you give it a command. When you do that, you can either take over manually and fly it just like you would a normal aircraft, but from a ground controller, or you can have a pre-programmed route that you've already loaded into the system, and it'll fly that pattern for you.
You can tell it, you know, "Hey, I just found an item of interest. Keep your eyeballs on that," and it will fly itself around and just keep eyeballs on that target for as long as you need to. It extends out to 20 kilometers, so 12-mile range. Great system, super quiet, very hard to detect in the air. When it's up to about 300, 350 feet, you think it's a bird. You would never know it, and you're not able to hear it. Great system. We're very proud of it. Also, it's very backpackable. It's very transportable. A tactical organization could have it in its backpack, basically stop, put the wings on, put the battery in, turn on the controller, and you can be in the air on your mission in three minutes. Pretty good capability when you think about scenarios like Ukraine.
One thing that's been holding the company back, and everybody needs to know because we've figured out a way to overcome it. Our drone center of excellence is in Lausanne, Switzerland. Switzerland is known for its neutrality. Sometimes what that neutrality means is they will not allow you to sell to anybody who's in an active conflict. When all the needs in Ukraine started getting hot, and they still are, we have not been able to sell to Ukraine. That's held us back. We were not able to sell to Israel, all because of the Swiss government. What we've done is we put a license agreement in place with our Swiss entity to license the design and the technology for the eBee VISION and put a second production plant in the United States. That will be starting up in the next couple of months.
You'll hear an announcement about that coming in a couple of months and how we're going to do that. That allows us, through that licensing arrangement, to comply with U.S. export law, not Swiss export law. We found a way to break through that barrier. Our camera products are used primarily for the agriculture market. What do these do for us? They give detailed analysis of the spectrum that's being reflected off the ground or the plants. It allows a farmer to use it from a precision agriculture basis to do an assessment of crop health, chemicals in the soil, insect infestations, the amount of moisture in the soil. You really can pay attention to the area that needs the most attention among your field. You can increase your yield and increase your efficiency, lower your costs big time for conducting major farming operations.
As I mentioned earlier, these are also, they found their way into some military uses with IED detection. Some of our key customers, we've sold to everybody from, you know, I talked about the French Ministry of Defense to the Air Force, Marine Corps, the Department of Energy for nuclear plant security. We've sold these all over Europe. We've sold in Latin America. We've got key partnerships that we've been announcing in Latin America recently. We put a partnership together with an Indian company called Viyam Drones. Now, why? It was kind of a unique structure for us where we actually licensed our design to them to allow them to do final assembly and production in India because India law demands that, that it has to be built in India.
We get the benefit of selling them the parts at a profit and collecting a license fee once they do final assembly and sell to the Indian government. The Indian agriculture market is huge, if you know anything about it, and these are for ag use. I expect that that's going to grow fairly rapidly and significantly. It was a different thing for the company to do because we usually sell through resellers and don't have those types of innovative partnerships. Now we do. The big deal is the drone market is growing big time. There's a lot of hype around it, but we're real, okay? We produce. We're turning this company into a profitable entity. We project that by the end of 2026, we will be turning a net profit, positive net profit. We've got cash on the balance sheet. Balance sheet is cleaned up.
We've got no debt right now other than a very small COVID loan that we can easily pay off if we need to. We've got cash, and we intend to go do some acquisitions. The FAA has been great. They have approved our systems for flights over people. We also know with what's called Rule 108 coming out that beyond visual line of sight of drones is going to be approved, and the rules are going to be finalized. What does this mean to the whole industry? This is not just unique to us. This means that the demand in the U.S. is going to go up big time because now the skies will be more open for drone use.
Every application you can think of from, like I mentioned, agriculture, delivery, support of public safety, search and rescue, all of those markets are going to grow big time for the drone industry. I think you're going to see that that growth is real. Just pay attention to that. I hadn't talked about these numbers yet, but the numbers in the drone market, again, I don't think I need to explain the ones that are on the chart, but it's a huge growing area, and I mentioned a lot of hype, but we're a real company. These are the benefits of Eagle NXT, again, approved by the FAA. Moving forward, we're advancing software in the AI realm for automated flight patterns and automated flight in a swarm environment. We've got the fixed-wing efficiency. We've got traction with the defense market. We've got the five proposals out right now.
We're really in a good position to turn this into a profitable operating company. A little bit on performance over the last year. Q2 of 2025 as compared to Q2 of 2024, you saw a significant improvement in operations and income. We saw about 90% growth of the drone side of the business between Q2 of this year and Q2 of last year, seeing some big things happen in the financials in the company. I will tell you, once you see our Q3 numbers come out, Q3 is a bit lumpy because we've had delayed awards coming from the U.S. government. You're going to see what I believe is going to be a very positive Q4. Our stock as of this morning was at $2.07, I believe, and we're looking at about a $70 million market cap, and we're headed in the right direction. I've already talked about these things.
The one thing I haven't mentioned, we've got a pipeline of over 50 active opportunities in front of us with over 50% probability of win. We're making this company real, and I just ask everybody here to keep your eyes on us. I think we've got a great company. We've got a great team who works together. We've got a great board who's guiding us in terms of strategy. At this point, I'm going to stop and turn it over for questions. I've got 10 minutes left, so it was pretty efficient. I'm buying some time back from the previous speaker. How about that? What questions do you have? Yes, sir.
You've mentioned that the regulations are really providing a much better environment for drones. What industry do you think is going to excite you the most? Is it ag? Is it going to be some other kind of monitoring out there? I'm just curious.
I think the biggest, quickest growth industry is going to be drone delivery. We do not play in that market, but there have already been flight corridors in certain cities approved for drone delivery, some here in California, some in Texas, and some other areas. I believe that'll grow faster and sooner than the other parts of the market. Ag, it'll happen for ag. It'll happen for construction support and inspection, things like power line inspection, road inspection. Those areas are going to grow pretty rapidly. We play more on the surveillance side. I think access to airspace is going to help us on the surveillance side as well when you come to public safety operations. Any other questions? Yes, sir.
You mentioned you have five military contracts. What are we looking at?
I have five military proposals in, not contracts. The largest one of those is about $3.5 million. The others are smaller, but those are great opportunities. I think once we start to make some headway with the U.S. Defense Department, and by the way, we've already sold four systems that are being used for special ops in the U.S. What you're going to see now is we're coming more into the mainstream with orders for units that are more public than what's happening in the special ops community. Hope that answers your question. What else? Yes, sir.
Just taking one, it looks like you came on board as both CFO and COO in your current roles here really recently.
Yeah.
Can you talk more about your history, not just with the company, but what made you want to take it, what made you bring it, what put you in this position?
That's been a great question, and Allison and I have gotten that a lot of times with the investors during this conference. She and I both joined in early 2024. I joined in February. She joined in April, was it, Allison? The company had a need to move toward putting discipline into its operations. What attracted us to the company, I think I can speak for both of us because I've heard her story too. I'll just tell it from my perspective. When the board reached out to me and said, "Hey, we'd like you to think about this opportunity," I took a look at the 10-K and I told the chairman, I said, "Look, it's pretty evident this company's in big-time trouble and needs some help." I've been in the drone industry for 30 years.
I worked for Northrop Grumman, I worked for L3 Harris, I worked for Martin UAV, I helped them sell to Shield AI. I worked for, who did I miss in that, Textron? I ran their UAV business for six years. That was a pretty nice business, about $600 million per year, 17% operating margin. That's my background. I really looked at it as a great challenge because I have fun. I've left the big industry guys and I've gone to smaller companies because it's a lot more fun. It's a lot more dynamic. You can have a big impact. I told the chairman, "I want to help this company come in and have an impact." I think we're beginning to do that. That's the reason. What else? Yes, sir.
How do you look at the M&A that I think you were talking about a bit earlier and getting the profitability into the six, what does it take to be the assumption tool? What are the driving forces behind that profitability? Is it M&A? Can you do it without the M&A?
When I say we're heading toward profitability by the end of 2026, that is in an as-is state. If we just operate in the structure that we have today, we will be profitable by the end of 2026. If we acquire somebody, I can't necessarily give you the same promise. What I will tell you is one of the acquisitions would bring us a different class of UAV into our family. We would be growing from a group one to a group two and group three. It also brings us to a different type of designer product and a great team that would come on board for advanced development. That's kind of our focus. The second M&A opportunity would be a market depth opportunity.
What I mean by that is it brings us a maintenance capability, a certified training team, a team that owns ranges that we could approve systems on and test systems on. That would add a whole different capability to the company. That's the kind of thing we have our eyes on. Other questions? Yes, sir.
What's your current manufacturing capacity?
Say again?
What's your current manufacturing capacity, and where is that manufacturing occurring?
Yeah, okay. Excellent question. It was manufacturing capacity and where's the manufacturing occurring? Our drone center of excellence, both from an engineering and production standpoint, is in Lausanne, Switzerland. Great technical expertise there, very precision-oriented engineers, but very expensive, right? Our camera plant is in Wichita, Kansas, so right now we have a couple of options on the table for where we make our second drone production line. It may be in Wichita or it may be in another state. We haven't finalized that decision yet, but currently, even with the current footprint we have, we could triple or quadruple our current capacity. We've got space to grow. We just need the orders to come in. That's why we re-equipped the sales team to go after stuff more aggressively.
What is that number, the number of units?
The number, and boy.
The number of units.
So.
How about ballpark?
How about this? How about I do it this way? $15 million, $60 million, okay? Because number of units, all of our units are priced in different ways. It all depends on which version you're talking about. Other questions? Really appreciate your time, everybody. Thank you so much, and I gave you four minutes back for lunch.