Canadian drone manufacturer Draganfly has established a dedicated US defence subsidiary as it seeks to expand its activities in the American military and national security markets.
Announced on 12 October 2026, Draganfly Defense USA will provide a specialised operating structure for the development and supply of uncrewed aerial systems to defence customers.
The company has appointed Thomas Modly, a former Acting Secretary and Under Secretary of the US Navy, as chairman of the subsidiary. Draganfly chief executive Cameron Chell will also serve on its board.
The announcement reflects the manufacturer’s intention to strengthen its position in defence programmes requiring secure technology, domestic operational capabilities and compliance with US government procurement requirements.
Dedicated defence operations
Draganfly Defense USA has been established to address the regulatory and operational requirements associated with supplying uncrewed systems to military organisations.
The subsidiary will focus on defence-specific governance, cybersecurity, data protection and export-control procedures.
These arrangements are intended to support the management of controlled technologies and sensitive information, including the separation of restricted activities where necessary.
The new structure will also provide Draganfly with a dedicated platform for developing relationships with US defence customers and participating in programmes with stringent security requirements.
Modly brings experience in defence administration and military procurement, having previously served in senior positions within the US Department of the Navy.
He has been a member of Draganfly’s board since 2024 and will relinquish that position to concentrate on his responsibilities at Draganfly Defense USA.
The subsidiary will operate within Draganfly’s wider business, which develops drone platforms, sensors and associated technologies for commercial, government and military applications.
Implications for defence procurement
The establishment of a dedicated defence subsidiary illustrates the importance of organisational and regulatory compliance in military drone procurement.
For smaller technology manufacturers, developing a suitable product is only one element of entering the defence supply chain.
Government customers may also require evidence of cybersecurity arrangements, secure information management, export-control procedures and appropriate governance structures.
These requirements can influence supplier eligibility, particularly for programmes involving sensitive military technology.
The new subsidiary could provide Draganfly with a more clearly defined framework for addressing those expectations and expanding its participation in US defence programmes.
For procurement authorities, specialised defence business structures may also simplify assessments of supplier responsibilities and controlled technology management.
However, the creation of the subsidiary does not itself establish any new equipment orders or guarantee future contract awards.
The development demonstrates how specialist drone manufacturers are adapting their business operations to meet the requirements of increasingly demanding military acquisition environments.
