A note before we begin: You may have received multiple versions of this update earlier today. We recently migrated to a new newsletter platform, and a configuration error during the transition sent out draft versions that were still being finalised. Please disregard those earlier emails. This is the official Q1 2026 update. Apologies for the inbox clutter.

Foreword

For those who may have missed it, we posted our product video on LinkedIn and social media. Go watch it if you haven't already.

Q1 2026 was about raising the bar. On the team, on the product, and on the commercial strategy, before we accelerate into the US. This is a quarterly update, so it covers more ground than usual. If you only have a few minutes, start with the Snapshot; the rest connects the dots.

Snapshot

The Good

The ESA contract is delivering, and the commercial pipeline is building fast.

The €1.2M ESA project is signed, first payment received, and the second milestone validated within weeks. Our software stack, Cosmogony, can clean logistics data, optimise routes across vehicle types, and generate strategic insights for fleet operators. This is the orchestration layer for autonomous logistics. The project runs in partnership with DPD Ireland on the Aran Islands, with full operations planned for 2027.

Beyond ESA, the BD pipeline is the strongest it has ever been. We recently pitched Colis Privé and CEVA Logistics through our Zebox partnership with CMA CGM, and conversations are progressing with several other enterprise operators. The challenge right now is less about generating interest and more about keeping up with it.

Cosmogony: fleet management, drone tracking, and device orchestration in one view.

At Zebox, CMA CGM's innovation hub, after pitching Colis Privé and CEVA Logistics.

Fleet Optimiser is picking up wind.

Fleet Optimiser started as a narrow feature: we needed drones to participate in mixed fleets, so we built the logic to make that work. But when we tested it against real customer data, the team ended up overshooting. It turns out our engineers know how to solve complex optimisation problems, and what came out is a genuine multimodal fleet planning tool with agentic data workflows and strategic recommendations (e.g. "add two 1.2T vans here to cut costs by 3%"). The incumbents in this space don't offer anything close.

A demo with Welch Group went public and got noticed: a real 10km delivery mission, two cargo compartments, 15+ parcels, in proper British winter weather. It picked up coverage in logistics press, which matters more than tech press because that's where our customers are.

Fleet Optimiser: AI scheduling agent, multimodal route planning, and real-time optimisation.

▶  Watch the Demo Video with Welch Group

IP and hiring: building durable advantages.

9 patents filed this quarter, with 15+ more mapped across the full stack: embedded systems, flight planning, payload architecture, and operating software. Operating at aerospace standards turns out to be a significant advantage for robotics broadly. The rigour required for risk-assessed autonomous systems is the same rigour needed for any autonomous vehicle. We're protecting the architecture and the operating know-how, not just individual components.

On the people side, six experienced hires joined this quarter. Tim Tramontin (ex-Google Wing) as Head of Flight Operations. Rian Lambe and Alex Nash (both ex-Manna) on full-stack engineering and airframe work. Matt Oakes (ex-Limosaero) on aerospace integration. Shane Murphy (ex-Military) on regulatory operations. And Eamon Tang, 10 years of full-stack experience, joining the software team. The full team came together on-site for a build sprint, assembling a small UAV to test components before they go on the bigger aircraft.

The team during our on-site build sprint.

The Bad

None of this is existential. It's the predictable friction of operating across jurisdictions with government bodies that move at their own pace. Frustrating, but manageable.

Enterprise Ireland: committed but still unsigned.

The €300K HPSU investment is committed and terms are agreed. What remains is administrative: a Tax Clearance Certificate and a matching funds letter. We've been pushing for over 14 months. We expect closure in the coming weeks.

SEIS/EIS compliance with HMRC.

HMRC delayed issuing a UTR number, then took four months to review the application. In the last week of March they requested further details. Seedlegals is actively managing this. The timeline is not in our hands, but it's being chased week by week.

The Ugly

We call it "The Ugly" because restructuring a small team is always a difficult process. Hard conversations, real impact on people, and no way to make it comfortable. These were the right decisions, but they were painful for everyone involved.

We restructured the team.

Starting in December, we took a hard look at what IONA needed to become versus what it currently was. We can't compete with teams spending hundreds of millions by operating at "good enough." If the ambition is to build the global leader in autonomous logistics, excellence is the baseline.

So we made changes. We reallocated resources, rescoped roles, and had difficult conversations where the fit was no longer right. We also had our first voluntary departure, which prompted a broader reflection on how we structure work. The result: on-site-first engineering contracts, clearly scoped responsibilities, and a team that's physically together where it matters. In parallel, we brought in six experienced hires to strengthen flight operations, software, aerospace engineering, and regulatory.

The team that exists today is materially stronger than the one we had in November. We're proud of where we've landed, even if the road to get here was hard.

Government grants: right direction, constrained speed.

We won a €4M DTIF grant for manufacturing and signed the €1.2M ESA contract for autonomous logistics operations. Both are significant endorsements. But the payment structures are reimbursement-based with long intervals between milestones, which means we can't deploy funds as aggressively as we'd like. We've restructured project schedules accordingly. It's the right call for financial discipline, but it means the scale-up moves at a measured pace rather than a sprint. We should be accelerating faster, and we would be with more capital.

Signals

Manna raised $50M, and it validates the ecosystem.

Congratulations to Bobby Healy and the Manna team on closing a $50M Series B (led by Ark Invest, ISIF, and Schooner Capital) to scale short-range drone delivery in Ireland and the US. We know Bobby well, and their success is a proof point for the entire ecosystem. But their model (last-mile, short-range, lightweight) competes head-on with Google Wing and Amazon Prime Air. Ours doesn't. We're targeting long-range, heavier payloads, and mixed-fleet logistics for enterprise operators: thinner competition, higher switching costs. Different bets, same tailwind.

IONA in the press.

We were featured in The Currency, who framed IONA as the "Stripe of drone logistics": selling infrastructure to carriers rather than competing with them. Also covered in the Business Post, Fleet World, and Motor Transport.

Strategy

For deeper strategic thinking between updates, I write on Substack: Thinking Out Loud.

Asks

I'll be in the US from April 13th. Texas and Oklahoma first, then San Francisco and New York from May to June. If you know someone I should meet in those cities, or anyone in the robotics, autonomy, or logistics infrastructure space, please reach out directly. A warm intro goes a long way.

Closing

The decisions we made this quarter are already paying off: a stronger team, a sharper product, and a commercial pipeline that didn't exist six months ago. The US trip starts next week. If you're in Texas, Oklahoma, San Francisco, or New York between now and June, let's meet.

Follow us on LinkedIn.

Thanks,
Etienne

Conrad (VP Engineering) presenting IONA's development approach at AUVSI Xponential in Germany.