The U.S. military’s drone policy just turned a corner. Defense Secretary Pete Hegseth approved a fast-track ramp on July 10 that clears the way for direct procurement of unmanned systems at the unit level. That means frontline commanders can now order, deploy, and test Group 1 and 2 drones without waiting months for central approval. Smaller drones have been reclassified as consumables, similar to ammo or field sensors. The Pentagon is building a searchable vendor database. Training protocols now mandate simulated drone warfare by 2027 across every branch. It’s not theoretical anymore. It’s operational.
This opens the door for commercial systems and battlefield-tested tech to move fast. 3D-printed chassis, custom ISR tools, and hybrid propulsion units are being lined up. The FAA is coordinating spectrum adjustments. The drone directive covers battlefield logistics, surveillance, and tactical warfare. The ramp is active, and industry is reacting.
Five companies are at the heart of the action:
ACHR is building fast-deploy electric aircraft for military logistics and casualty evac. Archer Aviation’s Midnight craft has been quietly tested under defense contracts and received over $850 million in funding. Its market cap is above $6 billion, and its hybrid flight systems are being adapted for contested zones.
ONDS is supplying autonomous drones and secure networks. Ondas Holdings owns American Robotics and Airobotics. It develops counter-UAS platforms and secure mesh comms for battlefield operations. Its revenue forecast for 2025 sits around $25 million, with the majority coming from its drone division.
RCAT produces battlefield drones. Red Cat Holdings supplies ISR and short-range recon units through contracts with the Army. Its products are being integrated with AI systems and surface naval platforms. Recent prototypes include fixed-wing VTOL drones and precision strike FPVs designed for squad-level deployment.
UMAC develops autonomous fleet command systems. Unusual Machines is building multi-drone coordination tech for squad control, ISR sweeps, and combat routing. The Navy is using its architecture in hybrid fleet trials. Algorithms are now being integrated into Flex 2025 and Indo-Pacific theater training.
KTOS builds high-end defense systems. Kratos Defense manufactures the Valkyrie combat drone, designed to operate alongside F-35 jets. It posted over $300 million in revenue last quarter and holds a $1.5 billion backlog. Kratos is now partnered with GE Aerospace to produce engine platforms for unmanned aircraft.
The drone ramp is no longer speculative. These companies are not pitching concepts, they are supplying hardware. Hegseth’s directive clears the way for tactical drone warfare on the battlefield, in the sky, and across naval deployments. Procurement is active. Integration is underway. And Wall Street is watching every frame.
Sources:
https://moneymorning.com/2025/07/08/big-money-is-betting-on-achr-should-you/
https://www.nasdaq.com/articles/archer-aviation-proceeds-midnight-launch-what-should-investors-do
https://www.fool.com/investing/2025/07/03/why-i-think-archer-aviation-is-poised-for-a-breako/
https://www.timothysykes.com/news/ondas-holdings-inc-onds-news-2025_07_09/
https://www.usni.org/magazines/proceedings/2025/july/building-navys-hybrid-fleet
https://www.timothysykes.com/news/kratos-defense-security-solutions-inc-ktos-news-2025_06_17/
https://www.kratosdefense.com/-/media/k/pdf/usd/2025-product-catalog.pdf
https://markets.ft.com/data/announce/detail?dockey=600-202507111120PR_NEWS_USPRX____LN28677-1