Palladyne AI Corp., a leading developer of artificial intelligence software for autonomous platforms across defense and commercial sectors, has taken a major strategic leap by acquiring GuideTech LLC and two Crucis companies Warnke Precision Machining and MKR Fabricators. With these additions, the company has officially launched a new operating division, Palladyne Defense, which combines embodied AI, UAV and loitering munition components, advanced engineering expertise, and U.S.-based manufacturing capabilities under one unified structure.
Furthermore, Palladyne rebranded the defense variant of its Palladyne Pilot embodied AI for drones as SwarmOS, reinforcing its commitment to intelligent autonomy at scale. As a result, the company is now positioned to accelerate revenue generation while supporting the Department of War’s modernization goals, including rapid iteration, reduced cost per effect, and the reshoring of critical defense manufacturing.
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Ben Wolff, President and CEO of Palladyne AI, emphasized the significance of this milestone, stating:
“This marks a defining inflection point for Palladyne AI. Through the creation of Palladyne Defense, we are transforming from an AI software innovator into a vertically integrated defense technology company.”
He added: “We are combining breakthrough autonomy with American manufacturing strength to create a defense enterprise that is fast and scalable by design ensuring America’s ability to build and sustain its own next-generation defense systems.”
Strong Revenue Outlook for 2026
Looking ahead, Palladyne expects the acquisitions to more than triple its 2024 revenue of $7.8 million in 2026. Near-term growth will stem from GuideTech’s engineering services and avionics portfolio, along with the Crucis Companies’ manufacturing capabilities. Both acquired operations are projected to become adjusted EBITDA positive by 2026. However, Palladyne plans to invest approximately $5 million over the next 12–18 months to advance GuideTech’s proprietary loitering munition systems to TRL 9. The combined entities also bring an 18-month backlog exceeding $10 million.
A New Mid-Tier Prime Model
With Palladyne Defense, the company is redefining the modern mid-tier prime contractor. Unlike traditional primes that often move slowly, or small innovators that lack manufacturing depth, Palladyne Defense integrates AI, avionics, and domestic production into a single agile ecosystem. This structure allows the company to deliver fast, adaptable, and cost-efficient systems aligned with U.S. defense priorities.
Wolff explained: “Palladyne Defense brings together embodied AI, advanced avionics and American manufacturing to deliver smarter, faster and more affordable solutions.”
Integrated Division Architecture
Palladyne Defense brings three major capabilities together:
- Embodied AI & Autonomy – Patented AI software enabling edge decision-making, swarm coordination, and adaptive mission execution.
- GuideTech Avionics & Engineering – Advanced avionics, flight systems, and rapid design-for-manufacture services that drastically shorten development cycles.
- Crucis Manufacturing – Domestic machining, fabrication, and assembly supporting major defense platforms including the F-16, F-35, Tomahawk, Harpoon, and Bradley.
GuideTech Co-Founder James Cook noted: “Joining Palladyne AI allows us to accelerate commercialization and strengthen our competitive position.”
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Collaboration Over Competition
Importantly, Palladyne Defense intends to work collaboratively within the defense ecosystem rather than competing with its customers. It will supply avionics, components, AI software, and design services while selectively addressing capability gaps not covered by traditional primes.
Kevan Johnston, President of Palladyne Manufacturing, remarked: “This partnership will further strengthen our capacity to deliver high-quality U.S.-made components that keep America’s defense industrial base strong and competitive.”
Commercial Division Continues to Advance
Meanwhile, Palladyne Commercial will continue pursuing opportunities in aviation, manufacturing, and logistics using Palladyne IQ and Palladyne Pilot. These systems, built on the same core AI foundation as Palladyne Defense, aim to enhance productivity, precision, and safety across industrial use cases.
Together, Palladyne’s dual-division model demonstrates how embodied AI can scale from commercial environments to mission-critical defense systems, driving innovation and operational advantage across multiple sectors.
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