Salt Lake City, Nov. 17, 2025 — Palladyne AI Corp. (PDYN, PDYNW) announced the creation of Palladyne Defense, a new operating division combining recent acquisitions—GuideTech LLC, Warnke Precision Machining, and MKR Fabricators—with the company’s patented Palladyne Pilot AI, now branded SwarmOS™.

The move establishes Palladyne as a vertically integrated mid-tier prime contractor, merging autonomous AI, UAVs, loitering munitions, advanced avionics, and U.S.-based precision manufacturing. The new division is designed to accelerate reshoring of critical defense capabilities, deliver low cost-per-effect autonomous systems, and provide scalable production capacity while generating immediate revenue from existing defense programs.

CEO Ben Wolff commented:
"Through Palladyne Defense, we are transforming from an AI software innovator into a vertically integrated defense technology company. By uniting autonomy, engineering, and U.S. manufacturing, we deliver intelligent, resilient, and cost-effective systems that advance the Department of War's modernization priorities and strengthen U.S. technological sovereignty."

Key Highlights

• Revenue Growth: Transactions are expected to more than triple Palladyne AI's 2024 revenue of $7.8 million in 2026, with contributions from GuideTech’s avionics and engineering services and the Crucis Companies’ manufacturing.
• Strategic Integration: Palladyne Defense combines three core elements:
  1. Embodied AI & Autonomy: Patented software enabling swarm coordination and adaptive mission execution.
  2. GuideTech’s Design & Avionics Services: Advanced systems, flight software, and rapid prototyping of attritable weapons.
  3. Crucis Companies’ U.S. Manufacturing: Precision machining, heavy fabrication, and assembly for air, land, and sea systems.
• Proprietary Systems: Includes flight-tested autonomous and loitering munitions systems designed to address gaps without competing with existing customers.
• Backlog & Production: Combined entities have an 18-month backlog exceeding $10 million, with adjusted EBITDA positive projections for 2026.

Redefining Mid-Tier Prime Capabilities

Palladyne Defense bridges the gap between traditional large defense primes and smaller innovators, offering rapid design-to-deployment, integrated AI autonomy, and domestic manufacturing at lower costs. The division supports U.S. defense modernization goals, emphasizing reshoring, rapid iteration, and cost-effective autonomous systems.

James Cook, Co-Founder and President of GuideTech, said:
"Joining Palladyne AI allows us to accelerate commercialization and deliver faster, smarter, and more affordable solutions by combining autonomy, avionics, and manufacturing at scale."

Kevan Johnston, President of Palladyne Manufacturing, added:
"This partnership strengthens our capacity to deliver high-quality, U.S.-made components to major primes, ensuring America's defense industrial base remains competitive."

Palladyne Commercial

In parallel, Palladyne Commercial continues to deploy Palladyne™ IQ and Palladyne Pilot across industrial and commercial sectors, leveraging the same AI technologies for precision, efficiency, and adaptability in non-defense applications.

Transaction Overview

• Total Purchase Price: $31 million
  • Stock: $20 million
  • Cash: $5 million
  • Debt Assumed: $6 million
• Maximum Earnout Potential: Up to $25 million over five years, contingent on revenue milestones.

The acquisitions position Palladyne Defense to execute across the full defense value chain—from advanced AI software to design, engineering, and U.S. production—delivering next-generation autonomous systems aligned with Department of War priorities.