Can ONDS' Acquisition Spree Accelerate Its Multi-Domain Strategy?

Ondas Holdings (ONDS) is rapidly evolving into a multi-domain defense and security technology platform. The company’s strategic acquisition program underscores how aggressively it is executing that shift. On the last earnings call, management noted that each of the acquisitions brings to the table “unique capability” within its “multi-domain architecture” and will enable building a “unified system of systems” through integration of ground, aerial and other vital elements and systems.

In the past few months, ONDS has made several buyouts that expand its reach into areas of unmanned ground systems, robotics and fiber optic communications, subsurface intelligence and demining robotics.

The company recently acquired Sentry CS Ltd., an Israel-based Sentry CS develops Cyber-over-RF and Protocol-Manipulation counter-UAS technology. Before that, it acquired a controlling interest in Insight Intelligent Sensors and in 4M Defense Ltd. Insight Intelligent Sensors specializes in the development of AI-driven electro-optical sensing systems. At the same time, 4M Defense is a smart demining company. 4M defense’s platform boasts advanced demining capabilities, like robotic systems with terrestrial and subsurface AI-powered intelligence tech.

Ondas Holdings Inc. Price and Consensus

Ondas Holdings Inc. price-consensus-chart | Ondas Holdings Inc. Quote

In August, it entered into a definitive agreement to acquire a controlling 51% interest in Israel-based S.P.O Smart Precision Optics. This company is a manufacturer of advanced precision optical components and systems. ONDS also acquired Apeiro Motion, which develops advanced ground robotics, fiber optic communications systems and mission-critical automation technologies. The Zickel buyout added a strong engineering team.

The company’s minority investment and strategic partnership with Rift Dynamics also bodes well. Rift’s Wasp platform (a modular, low-cost, mass producible drone platform) complements Ondas' Optimus and Iron Drone Raider, boosting OAS’ defense portfolio.

The M&A has also contributed to the backlog, which stands at $40 million at the end of the third quarter, including announced acquisitions. However, so many acquisitions in such a short period of time can create integration overload risk. Although these buyouts provide undeniable technological depth, investors must watch closely for an increase in expenses and execution risks.

Growth Initiatives of Other Players in the Drone Sector

Draganfly (DPRO) is focused on acquisitions, but not necessarily around technology/products. It is more focused on the people, as highlighted on the third quarter 2025 earnings call. DPRO is a Canada-based drone solutions and systems developer. It has 5-plus drone systems that are all NDAA-compliant. As the United States and NATO aggressively eliminate non-compliant Chinese systems from critical infrastructure, this compliance advantage becomes a moat. Recently, the company introduced its Outrider Southern Border drone, which is a North American-built, NDAA-compliant multi-mission drone platform.

Increasing deals with the U.S. military bode well. One of the most significant developments is the company’s first major U.S. Army FPV drone order, which is not only a product sale but also includes providing supply chain and logistical support. It also includes onsite assembly and manufacturing training for the Army to allow them to make “modifications on the fly.”

Unusual Machines (UMAC) is well-positioned within the evolving drone industry through its focus on manufacturing and selling (through B2B sales and a curated retail channel) small drones and essential components. The FPV segment is UMAC’s core operational area within the drone industry. The FPV segment centers around drones that are operated using wearable display devices or screens, providing a first-person view from the drone’s onboard camera.

Inorganic strategy is expected to drive top-line momentum. The company acquired Fat Shark and Rotor Riot businesses from Red Cat Holdings in 2024. It completed the acquisition of Rotor Lab Pty Ltd in September 2025. Australia-based Rotar Lab develops electric motors and propulsion systems for unmanned aerial systems.

ONDS Price Performance, Valuation and Estimates

Shares of ONDS have jumped 103.4% in the past three months against the Communication-Network software industry’s decline of 5.3%.

In terms of the forward 12-month price/sales ratio, ONDS’ shares are trading at 37.51X, higher than the industry’s 2.02X.

The Zacks Consensus Estimate for ONDS earnings for 2025 has been revised 9.4% upwards over the past 60 days.

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

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

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

Zacks Investment Research