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Will $35M PDW Investment Boost ONDS' Next-Gen Robotics Capabilities?

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Key Takeaways

  • Ondas invests $35M in PDW to scale C100 and AM-FPV production and expand autonomy and systems engineering.
  • The funding also strengthens domestic NDAA-compliant sourcing and both firms' autonomous defense roles.
  • Ondas lifts its 2025 revenue view to at least $36M and targets $110M for 2026 on strong backlog and bookings.

Ondas Holdings Inc. ((ONDS - Free Report) ) recently committed $35 million to Performance Drone Works (“PDW”), a rapidly rising defense-technology innovator known for building combat-infused aerial robotic systems. The initiative not only enhances PDW’s operational capabilities but also reshapes Ondas’ footprint in the national security innovation ecosystem. The investment is channelized through Ondas Autonomous Systems (OAS) business unit and private wireless solutions through Ondas Networks.

The $35 million infusion from Ondas enables PDW to accelerate expansion in three critical areas, including scaling production to meet skyrocketing demand for the flagship C100 and AM-FPV platforms, increasing engineering talent to expand autonomy, payload and systems-integration capabilities, and strengthening PDW’s supply chain with fully domestic, NDAA-compliant sourcing. This approach not only supports PDW’s rise but also enhances Ondas’ position as a key provider of AI-enabled autonomous defense and security platforms. The two companies will identify opportunities for collaboration that solidify homeland defense and empower U.S. military operations.

Ondas, with record backlogs, revenues and new acquisitions, continues to expand its autonomous defense portfolio. Recently, it secured an $8.2 million order from a major European security agency to deploy Iron Drone Raider counter-UAS systems at one of Europe’s largest airports. Ondas’ Airobotics unit will lead the project, managing integration, installation and ensuring the systems are fully operational around the airport.

Ondas is on track for a strong 2025 and now anticipates at least $36 million in revenue, up from the earlier estimate of $25 million. The increase stems from solid OAS performance and recent acquisitions, buoyed by a $23.3 million backlog and production visibility. Ondas Networks’ revenue remains limited due to slower rail deployments, but the company still expects a record year-end backlog and strong momentum heading into 2026. For 2026, it aims for at least $110 million in revenue, although quarterly results may vary depending on order timing and rail-network development.

Assessing the Strength of ONDS’ Industry Competitors

Draganfly Inc. ((DPRO - Free Report) ) builds advanced drones, software and AI tools that help organizations work better and serve their customers more effectively. Like ONDS, it continues to strike strategic deals to bolster its capabilities and capacities. Recently, it received an important international military order for its Commander 3XL drones. The order, placed through a major defense contractor, strengthens the drone’s reputation as a reliable, multi-mission tool for global defense use. It also marks Draganfly’s entry into the first phase of a military program evaluating drone solutions for wider deployment. The company was chosen by the U.S. Army to supply Flex FPV drones and saw its Commander 3XL selected by a major DoD branch for advanced missions.

Red Cat Holdings, Inc. ((RCAT - Free Report) ) is a U.S. developer of advanced drones and robotic systems for defense and public safety. Through Teal Drones and FlightWave, it builds American-made air, land and sea solutions, led by its Black Widow sUAS family. With Blue Ops, it is also expanding into uncrewed surface vessels to strengthen multi-domain mission support. For the third quarter, RCAT posted $9.6 million in revenue, representing 646% year-over-year and 200% sequential growth. A major driver for this surge is the expansion of the U.S. Army’s SRR Tranche 2 program, now valued at approximately $35 million, after being awarded in July 2025. The company has increased its 2025 revenue guidance to $34.5–$37.5 million. Red Cat ended the quarter with a powerful liquidity position, providing runway for manufacturing scale-up, acquisitions and international growth.

ONDS’ Price Performance, Valuation and Estimates

Shares of ONDS have surged 587.3% in the past six months against the Communication - Network Software industry’s decline of 6.7%.

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In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 31.3, considerably higher than the Communication - Network Software industry’s multiple of 2.

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

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


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