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Can ONDS' GATE & Bron Buyouts Fuel its Defense Growth Engine?
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Key Takeaways
Ondas agreed to acquire GATE and Bron for $205M, adding advanced electronic fuzing capabilities.
GATE is expected to grow revenue from $65M in 2026 to $180M in 2028.
Ondas is expanding production in the U.S. and Europe while pursuing additional defense acquisitions.
Ondas Inc. (ONDS - Free Report) continues to deepen its position in the rapidly expanding autonomous defense and precision-strike market. It recently agreed to acquire GATE Technologies Ltd. and Bron Technologies for $205 million, with an additional performance-based earn-out of up to $185 million. The deal gives Ondas exposure to a highly specialized part of the weapons supply chain: electronic safe-and-arm devices (ESADs) and advanced electronic fuzing systems.
A key growth opportunity for GATE is the rapid expansion of loitering munitions. According to the market data cited by Ondas, the global loitering munition market could grow from approximately $5.4 billion in 2025 to $13.3 billion by 2030, representing a CAGR of roughly 20%. The acquisition also includes Bron, a European manufacturing and certification affiliate associated with GATE. Per ONDS, ESAD components are currently in tight supply, meaning GATE's value extends beyond its intellectual property. Its manufacturing capabilities, engineering expertise, certifications and existing customer relationships could provide Ondas with a ready-made platform for scaling production.
Bron's Poland-based manufacturing presence also provides Ondas with an established European production base. Approximately 80% of GATE's revenue is generated outside the Middle East, giving Ondas an extensive international footprint. The company is also establishing U.S. engineering, integration, qualification and production capabilities. Ondas expects U.S.-produced finished products and integrated systems to be available in the first half of 2027. Ondas also expects GATE to generate $65 million in revenue in 2026, $180 million in revenue in 2028 and more than $130 million in adjusted EBITDA from 2026 through 2028, implying threefold revenue growth between 2026 and 2028.
Ondas is on an acquisition spree to bolster its existing defense portfolio. In August, it proposed acquiring Aran Defense Ltd., the defense-focused division of Israeli engineering and manufacturing company Aran Ltd. Ondas expects Aran Defense to strengthen in-house engineering, prototyping and scalable production, helping convert rising demand into repeatable output with better control over quality, costs, supply and delivery.
Are ONDS’ Competitors Expanding Through Acquisitions?
Draganfly (DPRO - Free Report) completed the acquisition of Skip Dynamix last month, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.
Beyond unmanned systems, Kratos Defense & Security Solutions (KTOS - Free Report) is expanding in hypersonics, rocket systems, propulsion and microwave electronics. The Orbit and Nomad acquisitions add capabilities in satellite communications systems and connected mobile operations centers, extending Kratos’ addressable customer set within national security. Taken together, this mix reduces reliance on any single platform and supports a more durable order flow across cycles. Cash and cash equivalents were $1.44 billion at June end, reflecting a large equity raise alongside operating progress and acquisition activity. However, Trump Administration executive orders could reshape DoD procurement and Federal Acquisition Regulations, potentially disrupting Kratos’ operations and future contract opportunities.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have plunged 25.9% year to date against the Zacks Wireless-National industry’s rise of 125.9%
Image Source: Zacks Investment Research
In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 4.61, lower than the industry’s multiple of 8.07.
Image Source: Zacks Investment Research
For ONDS, earnings estimates for the current year have been revised significantly downward in the past 60 days.
View the Zacks #1 Rank List
Image: Shutterstock
Can ONDS' GATE & Bron Buyouts Fuel its Defense Growth Engine?
Key Takeaways
Ondas Inc. (ONDS - Free Report) continues to deepen its position in the rapidly expanding autonomous defense and precision-strike market. It recently agreed to acquire GATE Technologies Ltd. and Bron Technologies for $205 million, with an additional performance-based earn-out of up to $185 million. The deal gives Ondas exposure to a highly specialized part of the weapons supply chain: electronic safe-and-arm devices (ESADs) and advanced electronic fuzing systems.
A key growth opportunity for GATE is the rapid expansion of loitering munitions. According to the market data cited by Ondas, the global loitering munition market could grow from approximately $5.4 billion in 2025 to $13.3 billion by 2030, representing a CAGR of roughly 20%. The acquisition also includes Bron, a European manufacturing and certification affiliate associated with GATE. Per ONDS, ESAD components are currently in tight supply, meaning GATE's value extends beyond its intellectual property. Its manufacturing capabilities, engineering expertise, certifications and existing customer relationships could provide Ondas with a ready-made platform for scaling production.
Bron's Poland-based manufacturing presence also provides Ondas with an established European production base. Approximately 80% of GATE's revenue is generated outside the Middle East, giving Ondas an extensive international footprint. The company is also establishing U.S. engineering, integration, qualification and production capabilities. Ondas expects U.S.-produced finished products and integrated systems to be available in the first half of 2027. Ondas also expects GATE to generate $65 million in revenue in 2026, $180 million in revenue in 2028 and more than $130 million in adjusted EBITDA from 2026 through 2028, implying threefold revenue growth between 2026 and 2028.
Ondas is on an acquisition spree to bolster its existing defense portfolio. In August, it proposed acquiring Aran Defense Ltd., the defense-focused division of Israeli engineering and manufacturing company Aran Ltd. Ondas expects Aran Defense to strengthen in-house engineering, prototyping and scalable production, helping convert rising demand into repeatable output with better control over quality, costs, supply and delivery.
Are ONDS’ Competitors Expanding Through Acquisitions?
Draganfly (DPRO - Free Report) completed the acquisition of Skip Dynamix last month, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.
Beyond unmanned systems, Kratos Defense & Security Solutions (KTOS - Free Report) is expanding in hypersonics, rocket systems, propulsion and microwave electronics. The Orbit and Nomad acquisitions add capabilities in satellite communications systems and connected mobile operations centers, extending Kratos’ addressable customer set within national security. Taken together, this mix reduces reliance on any single platform and supports a more durable order flow across cycles. Cash and cash equivalents were $1.44 billion at June end, reflecting a large equity raise alongside operating progress and acquisition activity. However, Trump Administration executive orders could reshape DoD procurement and Federal Acquisition Regulations, potentially disrupting Kratos’ operations and future contract opportunities.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have plunged 25.9% year to date against the Zacks Wireless-National industry’s rise of 125.9%
Image Source: Zacks Investment Research
In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 4.61, lower than the industry’s multiple of 8.07.
Image Source: Zacks Investment Research
For ONDS, earnings estimates for the current year have been revised significantly downward in the past 60 days.
Image Source: Zacks Investment Research
ONDS currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.