Perhaps at this point, industrial contract manufacturing is not the right context, in the sense that Summa would be a contract manufacturer for TSIR. Based on current information, it is a joint venture where they are the majority owner, and in the early stages, according to press releases, Summa has funded production “for the time being.”
Margins are also unlikely to be a problem on a general level. The drone companies that have popped up in the West in recent years are generating quite juicy margins, even though for a long time they were largely based on, for example, Chinese components. That is, those that have succeeded in obtaining operational approval, NATO stock numbers, and military contracts. This is partly due to a lack of competition, partly to cover the expensive R&D and validation processes required by defense industry demands, and certainly partly due to national governments’ temporary willingness to pay a conscious premium to rapidly kick-start defense-critical drone production and product development.
The relevant limiting factor is that if Summa were to announce a drone deal of X M€, at most only about half of the profit would flow into Summa’s consolidated financial statements once the non-controlling interests are deducted from the net profit (assuming a ~51% ownership stake). This is assuming the deal takes place through the Summa TSIR company.
This could be further complicated by potential profit distribution arrangements that deviate from the ownership structure, such as licensing fees, or if the deal occurs through Summa Drones and trickles down to subsidiaries via separate agreements. No such arrangements have been mentioned, but management communication has been a bit vague anyway.
The overall picture is further muddled by the fact that, according to news reports, Summa has funded the initial stage of production while the Ukrainian consortium is still seeking larger funding. There is no detailed information on the contractual arrangements, but it is possible that Summa has covered the production setup and access (at least in theory) to European markets, national defense investments, and Ukrainian aid budgets in exchange for existing intellectual property rights and approximately a half-share in the joint venture.
Early-stage margins might therefore be distributed asymmetrically if expenses are booked to Summa Drones or the parent company, while Summa TSIR acts as a holding through which the revenue flows. On the other hand, if business picks up, a large part of the income will likely go toward further investments.