The Estonian drone manufacturer's sales increased threefold

Rapid growth in 2023 and 2024

While last year the company, which mainly develops surveillance drones and equipment, earned an operating profit of over 150,000 euros on a turnover of 6.9 million euros, last year sales reached 20.4 million and profit reached 4.5 million euros, according to the annual report.
Threod Systems CEO Arno Vaik said that overall, they can be satisfied with the results. “Compared to the dynamics of previous years, it’s a nice step forward,” he said. This year, the goal is to grow at least twice and we’re already moving towards a turnover of 40 million.

A big contract from Lithuania

The biggest growth last year was understandably seen in sales to Ukraine, where sales were for 11.8 million euros, or ten times more than the year before. Vaik highlighted the challenge of increasing the production capacity of aircraft, which turned out to be a more difficult task than expected in many ways. Among other things, several development processes were started to make products easier to manufacture.
Vaik explained that Threod Systems' aircraft are more of a craft than a mass product, which is why it takes some time to increase the workforce. Making composite and aircraft fuselages requires manual skills and specific knowledge, which are not very common in Estonia. On the other hand, the production space is also becoming tight.
While last year Threod Systems had nearly a hundred employees, today it already has 140 and the growth continues, Vaik confirmed. Larger orders were fulfilled last year in addition to Ukraine and Estonia, also in the United Kingdom, Poland and Latvia. According to Vaik, this year Lithuania accounts for a large share of exports, because a deal worth about 10 million euros was made there with a tender win.

From a private limited company to a public limited company

While last year a total of over a million euros was invested, the lion's share in the development of new products, this year investments of around 600,000 euros are planned to be invested in the acquisition of production and testing equipment and improvement of the production environment.
Among other things, the management board noted in the report that in order to deepen the market share, cooperation with several international partners will be expanded and products will be further developed in order to remain competitive in the rapidly developing market.
The market in the field of activity is generally active, but competition is very intense and will intensify even more, the report states. “Demand has increased, but long decision-making cycles and complex financing issues can still be expected.”
He emphasized that there was no specific plan, but the form of a public limited company provides greater flexibility in the event of possible development scenarios, if the opportunity should arise, for example, to involve a strategic partner. “Rather, wishes and directions. "If it's going to be done, then don't waste any more time on administrative issues."

Summarized from "Aripaev"