ONDS' $10M Order Win Signals Multi-Domain Autonomy Portfolio Strength

Ondas Holdings Inc. ONDS is building strong momentum in the rapidly evolving autonomous defense and critical infrastructure security market. The company recently secured nearly $10 million in new purchase orders across its autonomous systems portfolio, solidifying its position as a rising player in integrated air and ground autonomy. These orders, spanning counter-UAS, autonomous drone platforms and robotic ground systems, follow Ondas’ record third-quarter results and add to an already impressive pipeline of government and infrastructure security programs heading into 2026.

The $10 million in new orders builds on a string of high-impact national security wins already achieved in 2025, including $16.4 million in fourth orders tied to major counter-UAS deployments at large European airports and its selection for a strategic government tender to develop a large-scale autonomous border-protection system. That border project alone is expected to involve thousands of drones, with Ondas as prime contractor, and an initial purchase order anticipated in January 2026, signaling a major revenue pipeline. 

These programs underscore rising global demand for persistent autonomous security across critical infrastructure. By integrating autonomous air and ground systems with advanced sensing and cyber technologies, Ondas delivers a scalable “Systems-of-Systems” platform built for modern defense and homeland security threats. Apart from technology, management highlighted its strong balance sheet, which is particularly important in the defense and infrastructure markets. With improving financial performance and a growing order book, Ondas appears increasingly well-positioned to meet these requirements in 2026.

Ondas now expects at least $36 million in 2025 revenue, up from the prior estimated $25 million, driven by strong OAS performance, acquisitions and a $23.3 million backlog. For 2026, it targets at least $110 million in revenue, with quarterly results dependent on order timing and rail-network buildout. However, macroeconomic woes and intensifying competition pose risks. Ondas faces mounting pressure from rival drone makers such as Draganfly Inc. DPRO and Red Cat Holdings, Inc. RCAT, which could challenge its growth and market share.

Mapping the Competitive Terrain Around ONDS

Draganfly develops advanced drones, software and AI tools that enhance operational efficiency for its clients. Like ONDS, it continues to strengthen its security and defense capabilities. In December 2025, DPRO entered a collaborative framework with Babcock International and Critical Infrastructure Technologies (via CiTech International) to explore joint defense and security initiatives across the Asia-Pacific region, following the execution of a non-disclosure agreement. Also, it secured a major international military order for its Commander 3XL drones through a leading defense contractor, enhancing the platform’s credibility and advancing it into the first phase of a broader military evaluation program. Its cash balance at the end of the third quarter of 2025 was C$69.9 million with minimal debt.

Through Teal Drones and FlightWave, Red Cat delivers American-made air, land and sea solutions, anchored by its Black Widow sUAS family. The company is also expanding into uncrewed surface vessels via Blue Ops to support multi-domain missions. Its revenue pipeline continues to grow, driven largely by the expansion of the U.S. Army’s SRR Tranche 2 program, now valued at around $35 million after its July 2025 award. RCAT has raised its 2025 revenue guidance to $34.5–$37.5 million and ended the third quarter with $212.5 million of cash and accounts receivable and $30.6 million in inventory and inventory deposits to support manufacturing scale-up, acquisitions and international expansion.

ONDS’ Price Performance, Valuation and Estimates

Shares of ONDS have surged 248.6% in the past year against the Communication - Network Software industry’s decline of 5.5%.

In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 95.69, considerably higher than the Communication - Network Software industry’s multiple of 2.04.

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

ONDS currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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

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