Draganfly Establishes Dedicated U.S. Defense Subsidiary, Appoints Former Under Secretary & Acting Secretary of the Navy Thomas Modly as Chairman

Draganfly forms a U.S. defense subsidiary, appoints high-profile leaders, but gives no financials.

What the company is saying

Draganfly Inc. is announcing the creation of Draganfly Defense USA, Inc., a U.S.-based subsidiary designed to meet the security, regulatory, and compliance requirements of U.S. defense and national security customers. The company emphasizes its intent to establish robust defense-specific governance, cybersecurity, data protection, and export-control procedures, presenting this as a structural foundation for future growth in the U.S. defense market. The appointment of Thomas B. Modly, former Acting Secretary and 33rd Under Secretary of the U.S. Navy, as Chairman, is highlighted as a major institutional signal, with Modly relinquishing his board position at Draganfly Inc. to focus on the new subsidiary. Brigadier General AJ Pasagian, USMC (Ret’d), named President in August 2026, is tasked with leading U.S. defense operations and driving strategic growth. The company references its recent acquisition of Skip Dynamix and a selection, with F4 Defense International, for a DEVCOM Army Research Laboratory development contract as evidence of momentum. The tone is confident and forward-looking, but the announcement is focused on structure and leadership rather than operational or financial outcomes.

What the data suggests

The announcement confirms the legal formation of Draganfly Defense USA, Inc., the appointment of Thomas B. Modly as Chairman, and Brigadier General AJ Pasagian as President, with Modly stepping down from Draganfly Inc.'s board. The company has acquired Skip Dynamix in 2026 and was selected, alongside F4 Defense International, for a development contract by the DEVCOM Army Research Laboratory, though no contract value or delivery milestones are disclosed. Draganfly claims more than 27 years of experience in unmanned systems, but provides no revenue, profit, order backlog, or operational metrics for the new subsidiary or its defense activities. The only concrete operational facts are the leadership changes, the acquisition, and the contract selection. All claims about future growth, expanded capabilities, and compliance readiness are forward-looking and not supported by quantifiable evidence in this release.

Analysis

The announcement is upbeat, highlighting the formation of a U.S. defense subsidiary, high-profile leadership appointments, and recent strategic actions such as an acquisition and a development contract selection. However, most of the claims about future growth, operational expansion, and the subsidiary's intended capabilities are forward-looking and not yet realised. There are no disclosed financial metrics (revenue, profit, contract value) or operational milestones that would allow investors to assess the immediate impact or profitability of these moves. The capital intensity flag is triggered by references to the acquisition of Skip Dynamix and manufacturing expansion, but without any quantification or evidence of near-term returns. The gap between narrative and evidence is moderate: while the structural and personnel changes are factual, the broader claims about U.S. defense market expansion and operational execution remain aspirational.

Risk flags

• ●Execution risk is significant, as the announcement provides no financial metrics, contract values, or delivery timelines for the new subsidiary. Without evidence of revenue or backlog, it is unclear when or if the subsidiary will contribute meaningfully to Draganfly's financials.
• ●Key-person dependency is elevated, with the company relying heavily on high-profile appointments—Thomas B. Modly and Brigadier General AJ Pasagian—to drive U.S. defense strategy and execution. While their backgrounds are impressive, personal leadership does not guarantee institutional or commercial success.
• ●Capital intensity risk is present, signaled by the acquisition of Skip Dynamix and ongoing expansion of manufacturing and supply-chain capabilities, but the absence of disclosed costs or funding sources raises questions about the financial burden and return on investment.
• ●Disclosure risk is apparent, as the company emphasizes structural and personnel changes but omits quantitative data on contracts, revenue, or operational progress, limiting investors’ ability to assess the subsidiary’s real impact.

Bottom line

Draganfly Inc. is making a structural bet on the U.S. defense market by forming a dedicated subsidiary, appointing a former Acting Secretary of the Navy as Chairman, and naming a retired Marine Corps General as President. These moves send a strong institutional signal and may help the company navigate U.S. defense procurement requirements, but the announcement lacks any financial, contract, or operational metrics to support claims of imminent growth. Investors have no visibility into the subsidiary’s revenue potential, cost structure, or execution timeline. The credibility of the narrative rests on the reputations of the new leaders rather than demonstrated business results. For this to become actionable, Draganfly would need to disclose contract wins, revenue impact, or clear operational milestones from Draganfly Defense USA. The most important takeaway is that this is a structural and personnel update, not a financial or operational inflection point.

Announcement summary

(NASDAQ:DPRO) (CSE:DPRO) (FSE:3U8) Draganfly Inc. announced the formation of Draganfly Defense USA, Inc., a dedicated U.S. defense subsidiary to support the company's expansion in the United States defense and national security markets. The new subsidiary is structured to address security, regulatory, and compliance requirements for serving U.S. defense customers, including governance, cybersecurity, data protection, export-control, and operational procedures. Draganfly Defense USA will focus on the segregation and protection of controlled technologies and sensitive information as required by U.S. defense programs. Thomas B. Modly, the 33rd Under Secretary and former Acting Secretary of the U.S. Navy, has been appointed Chairman of the Board of Draganfly Defense USA. Cameron Chell, CEO and Chairman of Draganfly Inc., will serve as a director of the new subsidiary. In accordance with regulatory requirements, Modly will relinquish his board position at Draganfly Inc. to assume the Chairman role at Draganfly Defense USA. Modly has served on Draganfly’s Board of Directors since 2024 and has provided strategic guidance as the company expanded its presence in defense and national security markets. Brigadier General AJ Pasagian, USMC (Ret’d), was appointed President of Draganfly Defense USA in August 2026 and will lead U.S. defense operations, overseeing strategic growth, government and industry relationships, operational expansion, and execution across defense programs. Draganfly’s recent activities in the U.S. defense sector during 2026 include the acquisition of Skip Dynamix, the appointment of Brigadier General AJ Pasagian, and selection with F4 Defense International by DEVCOM Army Research Laboratory for a development contract focused on a modular, multi-layered integrated counter-UAS system. The company is also expanding its North American manufacturing and supply-chain capabilities. Draganfly Defense USA, Inc. will provide a focused operating structure for unmanned aerial systems, autonomous systems and software, counter-UAS technologies, artificial intelligence and machine vision, sensing, payload and secure communications technologies, U.S. manufacturing and domestic supply-chain development, integration, training and sustainment, strategic industry and government partnerships, and execution of current and future U.S. defense programs. The subsidiary is expected to allow Draganfly to build U.S.-based capabilities while leveraging broader engineering, manufacturing, software, and technology resources across North America.

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