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Ondas Expands APAC Defense Footprint With Strategic UAS Contract
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Key Takeaways
Ondas secured a strategic APAC defense UAS contract through its Airobotics subsidiary.
The multi-phase deal starts deliveries this year and is integrated into existing defense architectures.
ONDS is expanding APAC presence as governments boost infrastructure protection, border security and C-UAS.
Ondas Inc. (ONDS - Free Report) recently secured a new strategic contract in the Asia-Pacific (“APAC”) region through its fully owned subsidiary Airobotics, enhancing its defense footprint in the region. The new contract also underscores the rising demand for autonomous unmanned aerial systems (“UAS”) among governmental defense customers as geopolitical tensions continue to simmer.
The execution will be done in multiple phases, with initial deliveries commencing this year. ONDS added that as deployments scale, there could be more potential follow-on orders. The company noted that the contract is “anchored” in the integration of the company’s autonomous systems within current defense and security architectures.
ONDS is prioritizing expanding its presence in the APAC region as governments increasingly focus on critical infrastructure protection, border security and counter-drone operations. Though the financial terms were not divulged, the multi-phase execution suggests enhanced revenue visibility as Ondas deepens relationships with defense clients in the region.
ONDS is heavily prioritizing its autonomous systems (“OAS”) business to drive top-line expansion and has been strategically scaling deployments across homeland security, defense and public safety markets across the globe.
Ondas Holdings Inc. Price, Consensus and EPS Surprise
At its Investor Day 2026, ONDS announced that it successfully launched and executed its core plus strategic growth plan and OAS is evolving from a collection of specialized autonomous drone systems into a multi-domain global autonomy platform.
Synergies from acquisitions as well as new opportunities in the counter-unmanned aerial systems (C-UAS) segment and ground robotics offerings, particularly within the Unmanned Ground Vehicle portfolios, further strengthen Ondas’ long-term growth profile.
The company now expects revenues between $47.6 million and $49.6 million for 2025, exceeding its earlier guidance by 23%. For 2026, Ondas has raised its revenue outlook to a range of $170-$180 million, representing a 25% increase from the previous target of $140 million.
Competitors Aren’t Far Behind
Red Cat Holdings (RCAT - Free Report) is witnessing solid demand from defense and government clients and expanding program wins. The company recently won a contract from an APAC client for its Black Widow sUAS. The contract, on a competitive tender, includes the delivery of an undisclosed number of systems in 2026.
Given the increasing demand for its solutions, the company is also sharpening its ability to rapidly scale production to meet mission-critical requirements. On the last earnings call, management emphasized “factories are the moat,” with expanded facilities in Salt Lake City, UT, and Los Angeles, and a newly opened 155,000-square-foot plant in Georgia (large-scale USVs manufacturing). The Georgia facility can churn out more than 500 to 1,000 vessels per year and has a sales showroom and lab in Southeast Florida and a prototype partner in Maine, added RCAT.
AeroVironment (AVAV - Free Report) is one of the key pure-play beneficiaries of rising global demand for military drones and its biggest competitive moat is the strategic ties with the U.S. and allied governments. It recently won an R&D order from the U.S. Air Force worth $75 million to develop next-generation biotechnology and materials science under the FRESH (Functional Responsive Experimentation for Systems and Humans) program at the Wright-Patterson Air Force Base in Dayton, OH.
In December 2025, AVAV delivered two Joint Light Tactical Vehicle-mounted laser weapon systems to the U.S. Army under the second increment of the Army Multi-Purpose High Energy Laser program.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have declined 30.4% in the past month against the Wireless-National industry’s growth of 9.7%
Image Source: Zacks Investment Research
In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 18.41, considerably higher than the industry’s multiple of 1.9.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ONDS’ earnings for the current year has been unchanged over the past 60 days.
Image: Bigstock
Ondas Expands APAC Defense Footprint With Strategic UAS Contract
Key Takeaways
Ondas Inc. (ONDS - Free Report) recently secured a new strategic contract in the Asia-Pacific (“APAC”) region through its fully owned subsidiary Airobotics, enhancing its defense footprint in the region. The new contract also underscores the rising demand for autonomous unmanned aerial systems (“UAS”) among governmental defense customers as geopolitical tensions continue to simmer.
The execution will be done in multiple phases, with initial deliveries commencing this year. ONDS added that as deployments scale, there could be more potential follow-on orders. The company noted that the contract is “anchored” in the integration of the company’s autonomous systems within current defense and security architectures.
ONDS is prioritizing expanding its presence in the APAC region as governments increasingly focus on critical infrastructure protection, border security and counter-drone operations. Though the financial terms were not divulged, the multi-phase execution suggests enhanced revenue visibility as Ondas deepens relationships with defense clients in the region.
ONDS is heavily prioritizing its autonomous systems (“OAS”) business to drive top-line expansion and has been strategically scaling deployments across homeland security, defense and public safety markets across the globe.
Ondas Holdings Inc. Price, Consensus and EPS Surprise
Ondas Holdings Inc. price-consensus-eps-surprise-chart | Ondas Holdings Inc. Quote
At its Investor Day 2026, ONDS announced that it successfully launched and executed its core plus strategic growth plan and OAS is evolving from a collection of specialized autonomous drone systems into a multi-domain global autonomy platform.
Synergies from acquisitions as well as new opportunities in the counter-unmanned aerial systems (C-UAS) segment and ground robotics offerings, particularly within the Unmanned Ground Vehicle portfolios, further strengthen Ondas’ long-term growth profile.
The company now expects revenues between $47.6 million and $49.6 million for 2025, exceeding its earlier guidance by 23%. For 2026, Ondas has raised its revenue outlook to a range of $170-$180 million, representing a 25% increase from the previous target of $140 million.
Competitors Aren’t Far Behind
Red Cat Holdings (RCAT - Free Report) is witnessing solid demand from defense and government clients and expanding program wins. The company recently won a contract from an APAC client for its Black Widow sUAS. The contract, on a competitive tender, includes the delivery of an undisclosed number of systems in 2026.
Given the increasing demand for its solutions, the company is also sharpening its ability to rapidly scale production to meet mission-critical requirements. On the last earnings call, management emphasized “factories are the moat,” with expanded facilities in Salt Lake City, UT, and Los Angeles, and a newly opened 155,000-square-foot plant in Georgia (large-scale USVs manufacturing). The Georgia facility can churn out more than 500 to 1,000 vessels per year and has a sales showroom and lab in Southeast Florida and a prototype partner in Maine, added RCAT.
AeroVironment (AVAV - Free Report) is one of the key pure-play beneficiaries of rising global demand for military drones and its biggest competitive moat is the strategic ties with the U.S. and allied governments. It recently won an R&D order from the U.S. Air Force worth $75 million to develop next-generation biotechnology and materials science under the FRESH (Functional Responsive Experimentation for Systems and Humans) program at the Wright-Patterson Air Force Base in Dayton, OH.
In December 2025, AVAV delivered two Joint Light Tactical Vehicle-mounted laser weapon systems to the U.S. Army under the second increment of the Army Multi-Purpose High Energy Laser program.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have declined 30.4% in the past month against the Wireless-National industry’s growth of 9.7%
Image Source: Zacks Investment Research
In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 18.41, considerably higher than the industry’s multiple of 1.9.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ONDS’ earnings for the current year has been unchanged over the past 60 days.
Image Source: Zacks Investment Research
ONDS currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.