Joby flexes military muscle with $500 million defense acquisition
Joby Aviation is acquiring Dayton, Ohio-based defence technology firm Resonant Sciences in a $500 million deal, as the electric air taxi maker seeks to build out its military business. The move reflects a broader trend among electric aviation developers, who are turning to defence contracts for revenue as regulatory approval for passenger-carrying air taxis remains years away and costs continue to mount.
Joby will fund the acquisition with $450 million in cash and $50 million in equity, with the deal expected to close in early 2027; Resonant will operate as Joby's dedicated defence division while its existing commercial arm focuses on air taxis due to launch later this year. Resonant, founded in 2015 and employing around 250 people, makes sensors, antennas and signal-processing systems that help aircraft communicate and evade detection in warzones, with products already qualified across more than 20 airframes. Joby has pursued military ties since 2016 and last week reported a $245.4 million quarterly net loss against just $38.6 million in revenue, underlining the financial pressure driving the shift towards defence work.
- Joby Aviation buys defence firm Resonant Sciences for $500 million
- Deal aims to build stealth aircraft and expand military revenue
- Comes as Joby posts a $245.4 million quarterly loss
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Joby Aviation is developing electric aircraft designed to carry passengers on short trips, often called air taxis. Getting approval to carry paying passengers takes time, and developing the aircraft is costly, so companies in the sector are also looking for other sources of income.
Resonant Sciences makes equipment that helps aircraft communicate and manage signals, including in military settings. Its products are used on more than 20 types of aircraft, and it employs about 250 people.
Defence contracts could give Joby a separate line of business while it continues work on air taxis. The company has pursued military work since 2016, amid substantial costs and much lower revenue.
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The strongest fair case each way — we don't pick a winner.
The case for
Joby faces an acute financial crisis—$245 million in quarterly losses against minimal revenue—whilst awaiting regulatory approval that remains several years distant. Defence contracts offer substantial, immediate revenue to extend the company's runway, and acquiring Resonant's specialised expertise in military sensors and communications strengthens Joby's technological foundation across both defence and commercial domains. This parallels successful aerospace firms that balance defence and commercial portfolios; rather than abandoning commercial ambitions, it represents a pragmatic survival strategy that funds continued development of air taxi technology.
The case against
This acquisition exposes fundamental weaknesses in Joby's business model. A company losing $245 million quarterly whilst generating only $38.6 million in revenue cannot sustainably justify a $500 million acquisition without raising serious questions about capital discipline. Heavy reliance on defence contracts risks complicating regulatory certification—government agencies may view military entanglement with scepticism—and creates unhealthy dependency on government budgets rather than proving commercial viability. Rather than solving underlying problems, the pivot towards defence work suggests investors lack genuine confidence in the air taxi concept materialising as originally envisioned.