Sky-Watch prepares for its next phase of growth

In drone industry terms, Sky-Watch is a mature company.

Founded in 2009, the Danish manufacturer is well established and, after more than four years of experience supporting Ukraine, believes it is well positioned for further growth.

- So far, the major growth driver for us has been our close cooperation with Ukraine through donations from European countries and direct orders from the Ukrainian government, says Hans-Christian Mathiesen, vice president for defence programmes and business development at Sky-Watch.

A growth trajectory

Defence Nordic meets Mathiesen at the International Drone Show in Odense, where the company maintained a busy presence throughout the event.

Based in Støvring, Sky-Watch develops, manufactures and commercialises advanced unmanned aerial systems (UAS), UAS components, software solutions and integrated mission systems for military, defence and security customers worldwide.

The company generated revenue of just over DKK 520 million in 2025. Revenue more than doubled between 2023 and 2024 before stabilising last year.

According to the company's annual report, this was partly due to product adaptations and targeted restructuring within parts of the supply chain.

However, Mathiesen believes the company has returned to a growth trajectory.

- We have invested a significant proportion of our revenue back into the company in preparation for the coming years, he said.

The pace of change in the sector has been exceptional. 

The war in Ukraine has accelerated the development of unmanned systems across all domains, while software and mission-management capabilities have become increasingly important.

Originally established with civilian applications in mind, Sky-Watch now operates in an industry crowded with new entrants seeking to capitalise on growing defence demand.

Innovation has not only centred on drone platforms themselves but also on the software ecosystems that enable them.

- Every country now has its own drone ecosystem, he says  unfazed by the increased competition.

- We operate in a landscape with a lot of what you could call aspiring competitors. We certainly face real competition, and some of those companies are serious competitors, he says.

- But I am convinced that when the war in Ukraine eventually ends, many of these companies will disappear again, leaving investment and demand concentrated among the remaining players.

Sky-Watch maintains a close partnership with German defence technology company Helsing. 

The two companies are developing a combined solution in which Sky-Watch reconnaissance drones operate alongside Helsing attack drones within an integrated system-of-systems architecture.

- Unmanned technologies are changing the battlefield by disrupting supplies to Russian units at the front, said Mathiesen, noting that between 80 and 90 percent of casualties are now attributed to unmanned systems.

- It is crazy.

Effectively an Ukranian company

Since the start of Russia's full-scale invasion, the company has effectively operated as a Ukrainian drone supplier with its headquarters in Denmark.

Sky-Watch maintains an office in Kyiv as well as a repair facility in Ukraine and works closely with experienced Ukrainian drone operators who provide operational feedback and advisory support.

- It goes without saying that this set-up provides us with a significant amount of data. That is what drives our growth because we do not simply deliver a product; we deliver a complete system and continued support to the customer, said Mathiesen.

But the company not only operates int Ukraine. 

Since 2022, Sky-Watch has been part of the US-listed aerospace company AIRO Group Holdings.

The US ownership structure is also opening opportunities in the American market, and the company is now establishing production capacity in Phoenix, Arizona.

- For us, the ownership is a strength, he says.

- It provides access to the US market while allowing us to leverage our experience from Ukraine for customers who do not have direct operational experience from the conflict.

Continued growth

Looking ahead, Mathiesen expects continued growth for both Sky-Watch and its parent company.

To date, the company's flagship product has been the Heidrun drone, which has been extensively tested and deployed in Ukraine.

However, Mathiesen confirmed that Sky-Watch will unveil a new product at Eurosatory in Paris, with additional launches planned.

So far this year, the company has signed contracts with two European customers, secured a major tender in Asia and entered advanced discussions with prospective customers in the Americas outside the United States.

Combined with upcoming product launches, Mathiesen believes the company is entering a new phase of expansion.

- I am very excited. Demand is enormous, and it requires close cooperation across the industry.