Ondas Boosts Defense Portfolio With Key Strategic Acquisitions

Ondas Inc. ONDS is accelerating its expansion in the global defense technology market through a series of strategic acquisitions aimed at strengthening its autonomous systems capabilities and building a multi-domain, integrated defense ecosystem.

Recently, Ondas acquired INDO Earth Moving Ltd., a specialist in heavy engineering equipment for military and infrastructure programs. The acquisition brings with it a $140 million contract under a strategic military procurement initiative, covering the delivery of heavy-tracked engineering vehicles along with long-term maintenance, logistics and operational support. By integrating INDO’s engineering expertise with its own autonomous technologies, Ondas aims to transform traditional heavy machinery into robotic engineering platforms equipped with capabilities such as remote operation, autonomous navigation and advanced perception systems.

The recent acquisition of Rotron Aerospace strengthens its position in long-range unmanned aerial systems, adding VTOL platforms, advanced aero-engines and propulsion technologies. Ondas has also acquired BIRD Aerosystems, marking its entry into the airborne missile protection and unmanned aerial systems segment. BIRD’s capabilities in Airborne Missile Protection Systems and Airborne Surveillance, Intelligence and Observation, deployed across more than 700 platforms globally, significantly expand Ondas’ presence in airborne defense and acquired Roboteam, enhancing its capabilities in ground-based autonomous systems. Additional acquisitions, including Sentrycs, Apeiro Motion and Zickel, further strengthen its portfolio.

Apart from acquisitions, the company announced a merger agreement with Mistral, under which Mistral will merge with a subsidiary of Ondas while continuing to manage its existing contracts. The deal strengthens Ondas’ position in the defense sector by adding Mistral’s capabilities in U.S.-based manufacturing, system integration and quality assurance.

Moreover, the company announced a strategic partnership with Palantir Technologies and World View Enterprises to develop AI-enabled multi-domain ISR capabilities across stratospheric, aerial and ground operations.

Ondas is set to report its fourth quarter and full-year 2025 results on March 25, 2026. Driven by sustained momentum, the company now expects fourth-quarter revenues of $29.1-$30.1 million, above prior guidance of $27 million to $29 million. It anticipates a net loss of $20.9-$20.4 million and an adjusted EBITDA loss of $11.4-$10.9 million. For 2026, Ondas has reiterated its revenue outlook (excluding any new acquisitions announced in 2026) in the range of $170-$180 million.

Taking a Look at ONDS Competitors’ Acquisition Strategies

Draganfly DPRO has adopted a measured growth strategy focused on selective acquisitions and strategic partnerships to enhance its technology portfolio. The company is strengthening its position through expanding U.S. military deals, including a contract with the U.S. Air Force Special Operations Command alongside DelMar Aerospace Corporation for Flex FPV drones and training. DPRO also secured its first major U.S. Army FPV drone order, which includes supply chain, logistics and onsite manufacturing training. Partnerships with Drone Nerds, Autonome Labs and SafeLane further expand its reach. Also, ongoing U.S. manufacturing expansion is expected to significantly scale Draganfly’s capacity and support long-term growth.

Unusual Machines’ UMAC acquisitions are an integral part of its long-term growth and scaling strategy within the drone components ecosystem. The company views inorganic expansion as a key lever to accelerate capability development, enhance manufacturing capacity and strengthen UMAC’s position in the rapidly evolving domestic drone supply chain. In the last earnings call, management stated that acquisitions are not pursued in isolation but are combined with internal build-outs to maximize impact, as demonstrated by its acquisition of Rotor Lab, which helped accelerate motor production timelines by approximately six to 12 months. Recently, Unusual Machines announced a strategic collaboration with Lantronix to develop next-generation autonomous drone components integrating edge AI compute with mission-critical flight control systems, supporting scalable AI-enabled unmanned platforms.

ONDS’ Price Performance, Valuation & Estimates

Shares of ONDS have gained 48.1% in the past six months against the Zacks Wireless-National industry’s decline of 1.8%.

Image Source: Zacks Investment Research

Valuation-wise, ONDS seems overvalued, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 22.75, considerably higher than the industry’s multiple of 1.91.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ONDS’ earnings for the current year has been revised south over the past 60 days.

Image Source: Zacks Investment Research

ONDS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ondas Holdings Inc. (ONDS): Free Stock Analysis Report

Draganfly Inc. (DPRO): Free Stock Analysis Report

Unusual Machines, Inc. (UMAC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research