Trump Jr.-Linked Unusual Machines Lands Major Pentagon Drone Contract Amid Ethics Concerns

Florida-based Unusual Machines has secured its largest Pentagon contract to date, winning a deal to supply 3,500 drone motors and components to the U.S. Army—just months after Donald Trump Jr. joined the company as an adviser with a $4 million stake. The Financial Times first reported the contract award on Friday, reigniting conflict-of-interest concerns that DroneXL has been tracking since the president’s eldest son joined the drone manufacturer last November.

The timing is striking. Unusual Machines landed this contract as the Trump administration aggressively pushes domestic drone production through a $1.4 billion funding initiative and expedited Pentagon procurement policies. The company told investors it expects the U.S. military to order an additional 20,000 components next year, potentially transforming the relatively small manufacturer into a major defense supplier. Shares jumped 13% on Friday following the announcement.

CEO Allan Evans described the award as the company’s largest-ever U.S. government order but declined to disclose the contract’s value.

A company spokesperson insisted that Trump Jr. “has never communicated with anyone in the administration on behalf of Unusual Machines or about the contract in question,” adding that “his advisory role with them has nothing to do with interfacing with the government.”

Pentagon’s Accelerated Drone Procurement Push

The contract arrives amid the most aggressive expansion of U.S. military drone procurement in a generation. On June 6, 2025, President Trump signed Executive Order 14307, “Unleashing American Drone Dominance,” directing federal agencies to prioritize American-manufactured drones and accelerate domestic production for both commercial and military applications.

Defense Secretary Pete Hegseth followed with a July 10 memo that eliminated bureaucratic restrictions and reclassified small drones as “consumable” supplies—allowing field commanders to procure systems directly without lengthy Pentagon approval processes. “The department’s bureaucratic gloves are coming off,” Hegseth declared when announcing the changes.

Army Secretary Daniel Driscoll signaled the service’s priorities earlier this month, stating the Army will “equip soldiers with these kinds of expendable drones that deliver devastating effects at a massive discount.” Driscoll outlined plans for special forces units, including the Ranger Regiment and Delta Force, to operate with embedded software engineers as standard practice. The Army aims to purchase up to 10,000 small drones by September 2026 for less than $2,000 each.

Unusual Machines Expands Defense Portfolio

This Pentagon award builds on Unusual Machines’ growing defense presence. The company signed a $12.8 million agreement with Strategic Logix in September 2025 to supply over 160,000 drone components for the military’s Rapid Reconfigurable Systems Line. In August, it secured a $1.6 million deal with an unnamed domestic defense drone maker.

In February, DroneXL reported Unusual Machines’ first major defense industry partnership with Red Cat Holdings to supply NDAA-compliant motors for their drone platforms. That deal marked the company’s debut as a supplier to U.S. defense contractors, with production eventually shifting to a new domestic manufacturing facility still under construction.

Chief Warrant Officer 4 John Brown of the 101st Airborne Division praised the broader procurement initiative, stating “The ability to train like we fight, using drones that are reliable… gives our soldiers the confidence they need for real-world scenarios.”

Financial Challenges and Scaling Concerns

Despite the contract wins, Unusual Machines faces significant operational challenges. The company reported a $3.3 million operating loss in the first quarter of 2025, largely attributed to Trump administration tariffs that increased costs for components previously sourced from China. The company has warned that shifting to domestic production could impact profitability as it works to match Chinese competitors on both performance and price.

Unusual Machines owns popular FPV drone brands Fat Shark and Rotor Riot, acquired as part of its strategy to transition from consumer sales to defense contracting. The company is establishing a 17,000-square-foot (approximately 1,579 square meters) manufacturing facility in Orlando, Florida, with motor production scheduled to begin later this year.

The company’s stock has surged more than 900% in 2025, with shares nearly tripling after Trump Jr.‘s appointment to the advisory board was announced. Following Friday’s contract news, the stock extended gains, though it remains volatile as investors weigh growth potential against execution risks.

Competitive Landscape in Domestic Drone Manufacturing

Unusual Machines enters an increasingly competitive field of U.S. drone manufacturers vying for Pentagon contracts. Red Cat Holdings unseated Skydio in November 2024 to win the Army’s Short Range Reconnaissance Program of Record, a five-year deal targeting 5,880 systems potentially worth up to $260 million. Meanwhile, Skydio continues producing over 1,000 drones monthly at its California facility and maintains contracts across multiple defense branches.

The Pentagon’s Blue UAS program certifies secure, domestically produced drones for military use, creating a framework that favors American manufacturers while excluding Chinese competitors like DJI. With a December 23, 2025 deadline looming for a national security review of DJI and Autel drones, the pressure to develop robust domestic alternatives has intensified.

DroneXL’s Take

We’ve been covering this story since July, when we first examined the ethical implications of Trump Jr.‘s $4 million investment in a company positioned to benefit directly from his father’s defense policies. Today’s contract award is exactly what ethics watchdogs warned about—a company with direct family ties to the president landing federal contracts in an industry the administration is actively promoting through executive orders and billion-dollar funding initiatives.

The company’s spokesperson insists Trump Jr. played no role in securing the contract, and we have no evidence suggesting otherwise. But that’s precisely the problem with this arrangement: it’s impossible to disentangle legitimate business success from the appearance of political favoritism when the president’s son holds millions in a company winning contracts from his father’s Pentagon.

This raises uncomfortable questions about the broader “Buy American” drone initiative. Is the Pentagon selecting suppliers based purely on capability and cost, or is proximity to political power influencing procurement decisions? Unusual Machines reported a $3.3 million operating loss just months ago and is still building its domestic manufacturing facility. Can it actually deliver 3,500 motors plus thousands of additional components while competing on price with established players?

The domestic drone manufacturing push is critical for national security—DroneXL has consistently supported reducing reliance on Chinese suppliers and building American industrial capacity. But that mission is undermined when contracts create the perception that political connections matter more than proven performance. The Army needs reliable, cost-effective systems that work on the battlefield, not companies selected because of family ties to the White House.

We’ll be watching closely to see whether Unusual Machines can actually deliver on this contract while scaling production and controlling costs. The company’s success or failure will tell us whether this is a legitimate manufacturing expansion or an example of political access translating directly to federal contracts.

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