Archer Aviation to Buy Boeing's Insitu Drone Unit as Stock Falls 64.6% Over Past Year
Why It MattersArcher would add an established defense-drone business to a pre-revenue air taxi developer, tying eVTOL commercialization to unmanned-systems income while Boeing becomes a shareholder in the company.
Archer Aviation (ACHR) is acquiring the drone maker Insitu from Boeing. Management said on the fiscal Q2 2026 call that Insitu is currently profitable, with over $200 million in annual revenue across 35 countries, though no profit figure was provided. Archer reported $6.9 million in revenue over the four quarters ended June 2026, so Insitu sells about 29 times as much. The deal has not closed, so Insitu's sales do not yet appear in Archer's accounts, and management expects Insitu to contribute positive free cash flow after closing.
Boeing is taking a stake in Archer as payment for Insitu and two other Boeing businesses, Wisk Aero and SkyGrid; the payment is all stock with a lockup. Management is targeting a close by the end of the year, and on September 24, 2026, Archer announced that the Hart-Scott-Rodino waiting period for the deal had expired.
Archer's stock fell 64.6% over the past year, compared with a 17.1% gain for the S&P 500, and shares closed at $3.98 on October 20, 2026, for a market value of about $3.1 billion. Free cash flow was negative $681 million over the four quarters ended June 2026, worse than negative $477 million a year earlier, and the fiscal Q2 2026 adjusted EBITDA loss of $177 million was near the low end of the guided $170 million to $200 million range. Archer held $1,561 million in cash and short-term investments at the end of June against $126 million of debt. Management said it can grow sales while keeping cash burn relatively flat through the closing and integration, and expects the fiscal Q3 2026 adjusted EBITDA loss to stay within $170 million to $200 million. The diluted share count rose 211.4% in the three years to fiscal Q2 2026.
