KULR Tech (KULR) Bets Big On Drones While Bitcoin Losses Bite

On August 13, KULR Technology Group (NYSEAMERICAN:KULR) held its second-quarter earnings call, and CEO Michael Mo did not sugarcoat it. Revenue fell 43% year over year to $2.1 million, and the company posted a gross loss for the period. Yet the same call detailed a $20 million debt payoff, a full exit from Bitcoin mining, and a fresh $5 million defense drone order tied to a $1.1 billion Pentagon program shifting from policy talk to purchase orders.

Pentagon Orders Start Rolling In

The US Department of Defense's $1.1 billion Drone Dominance program has moved from planning to purchase orders, with roughly 30,000 units currently being delivered and another 60,000 expected in September, on the way to hundreds of thousands of units by 2027. Management pointed to the fiscal 2027 budget request, which includes more than $70 billion for drones and counter-drone systems, the largest such allocation in US history. Mo argued that domestic drone makers are being pushed to drop foreign parts, including batteries, calling it a market where "the American drone market is converting from policy to purchase orders."

KULR is chasing that wave with concrete wins. In the second quarter, the company landed initial defense drone battery orders worth more than $5 million from a US drone maker participating in the Drone Dominance initiative. Management also expects to begin shipping NDAA-compliant chargers to US customers by the end of 2026, rounding out a power stack that spans battery packs, thermal management, and charging electronics.