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Ondas Adds $165M in New Orders, Boosts 2027 Revenue Visibility
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Key Takeaways
Ondas secured over $165M in new orders, bringing total orders since June 30 to more than $270M.
ONDS' latest wins include ULTRA, IonStrike and a $56M ESAD award for a European loitering munition program.
Ondas raised its 2026 revenue target to $525M-$550M, backed by a pro forma backlog of $757M at June-end.
Ondas Inc. (ONDS - Free Report) recently announced that it has secured more than $165 million in aggregate orders from the second half of August through Oct. 1. This, when combined with roughly $105 million of orders disclosed on the last earnings call (Aug. 13), brings total orders to more than $270 million since June 30, improving revenue visibility into 2027.
Management noted that broad-based strength across product categories and geographies contributed to strong order activity. Importantly, the latest wins include strategically significant orders for ULTRA and IonStrike, with both platforms progressing through key customer-validation milestones. ONDS acquired ULTRA through the DZYNE buyout. ULTRA is a long-endurance autonomous aircraft delivering multi-day ISR, while IonStrike targets the growing counter-UAS market, including defense against Shahed-class drones.
The orders also include the recent $56 million Electronic Safe & Arm Devices ("ESAD") award, supporting a European loitering munition program. The order represents an important early commercial development following Ondas’ acquisition of GATE Technologies and Bron Technologies last month.
In September, Ondas launched Dronebuster REACH, extending its non-kinetic counter-UAS capabilities, while Cyberhawk secured a multi-year infrastructure inspection agreement with SSE.
In September, Ondas also acquired three defense technology businesses (Insignito, Ottopia Defense and Caribou Labs) for $56 million, payable in cash or its common stock, with potential performance-based earn-outs of up to $32 million based upon achieving key performance milestones through 2028. In August, it entered into a definitive agreement to acquire Aran Defense Ltd., the defense division of Aran Ltd., for approximately $33 million in cash or common stock. Aran Defense would expand Ondas’ Israeli engineering and manufacturing capacity, including roughly 4,400 square meters of facilities.
These developments build on a strong second-quarter foundation. Ondas generated quarterly revenues of $83.8 million, while pro forma backlog stood at approximately $757 million at June-end, including DZYNE and Cyberhawk. Management also raised its 2026 revenue target to $525-$550 million.
With new orders continuing to boost backlog, Ondas appears to be gaining greater visibility. However, converting the rapidly expanding order book into timely deliveries, while scaling manufacturing and managing operating expenses, will remain key to sustaining its growth trajectory. Increasing competition in the already crowded drone space is another headwind.
Mapping Competitive Terrain
Red Cat Holdings (RCAT - Free Report) is one of Ondas’ closest competitors. Management reaffirmed its $150-$180 million full-year revenue target at the second-quarter 2026 earnings call. Second-quarter revenues surged 527% year over year to $20.2 million. First-half 2026 revenues reached roughly $35.7 million, up from $4.8 million a year earlier.
Management said it entered the second half with nine active products, roughly 270,000 square feet of production capacity, and improved unit economics. This creates a substantially larger operating base from which second-half growth can build.
On the last earnings call, the company indicated that $50-$80 million of sellable drones could ship immediately if corresponding orders were received, primarily Black Widow and Hellcat units. The company is also broadening its reach into the maritime sector through Blue Ops, where it is developing uncrewed surface vessels.
AeroVironment (AVAV - Free Report) began fiscal 2027 on a strong note. Fiscal first-quarter revenues of $480.5 million were up 6% year over year. The company secured $683 million in bookings during the quarter, with a book-to-bill ratio of 1.4 and trailing 12-month bookings surpassed $3 billion, with a book-to-bill ratio of 1.5. Funded backlog reached $1.5 billion at quarter-end, up 37% year over year, while total funded and unfunded backlog stood at more than $2.8 billion.
The Autonomous Systems segment remains the company's principal growth engine. The segment delivered 21% year-over-year revenue growth, with Uncrewed Aircraft Systems revenues up 71%, driven by strong domestic and international demand for P550, JUMP 20-X and Puma.
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Ondas Adds $165M in New Orders, Boosts 2027 Revenue Visibility
Key Takeaways
Ondas Inc. (ONDS - Free Report) recently announced that it has secured more than $165 million in aggregate orders from the second half of August through Oct. 1. This, when combined with roughly $105 million of orders disclosed on the last earnings call (Aug. 13), brings total orders to more than $270 million since June 30, improving revenue visibility into 2027.
Management noted that broad-based strength across product categories and geographies contributed to strong order activity. Importantly, the latest wins include strategically significant orders for ULTRA and IonStrike, with both platforms progressing through key customer-validation milestones. ONDS acquired ULTRA through the DZYNE buyout. ULTRA is a long-endurance autonomous aircraft delivering multi-day ISR, while IonStrike targets the growing counter-UAS market, including defense against Shahed-class drones.
The orders also include the recent $56 million Electronic Safe & Arm Devices ("ESAD") award, supporting a European loitering munition program. The order represents an important early commercial development following Ondas’ acquisition of GATE Technologies and Bron Technologies last month.
In September, Ondas launched Dronebuster REACH, extending its non-kinetic counter-UAS capabilities, while Cyberhawk secured a multi-year infrastructure inspection agreement with SSE.
In September, Ondas also acquired three defense technology businesses (Insignito, Ottopia Defense and Caribou Labs) for $56 million, payable in cash or its common stock, with potential performance-based earn-outs of up to $32 million based upon achieving key performance milestones through 2028. In August, it entered into a definitive agreement to acquire Aran Defense Ltd., the defense division of Aran Ltd., for approximately $33 million in cash or common stock. Aran Defense would expand Ondas’ Israeli engineering and manufacturing capacity, including roughly 4,400 square meters of facilities.
Ondas Holdings Inc. Revenue (Quarterly)
Ondas Holdings Inc. revenue-quarterly | Ondas Holdings Inc. Quote
These developments build on a strong second-quarter foundation. Ondas generated quarterly revenues of $83.8 million, while pro forma backlog stood at approximately $757 million at June-end, including DZYNE and Cyberhawk. Management also raised its 2026 revenue target to $525-$550 million.
With new orders continuing to boost backlog, Ondas appears to be gaining greater visibility. However, converting the rapidly expanding order book into timely deliveries, while scaling manufacturing and managing operating expenses, will remain key to sustaining its growth trajectory. Increasing competition in the already crowded drone space is another headwind.
Mapping Competitive Terrain
Red Cat Holdings (RCAT - Free Report) is one of Ondas’ closest competitors. Management reaffirmed its $150-$180 million full-year revenue target at the second-quarter 2026 earnings call. Second-quarter revenues surged 527% year over year to $20.2 million. First-half 2026 revenues reached roughly $35.7 million, up from $4.8 million a year earlier.
Red Cat Holdings, Inc. Revenue (Quarterly)
Red Cat Holdings, Inc. revenue-quarterly | Red Cat Holdings, Inc. Quote
Management said it entered the second half with nine active products, roughly 270,000 square feet of production capacity, and improved unit economics. This creates a substantially larger operating base from which second-half growth can build.
On the last earnings call, the company indicated that $50-$80 million of sellable drones could ship immediately if corresponding orders were received, primarily Black Widow and Hellcat units. The company is also broadening its reach into the maritime sector through Blue Ops, where it is developing uncrewed surface vessels.
AeroVironment (AVAV - Free Report) began fiscal 2027 on a strong note. Fiscal first-quarter revenues of $480.5 million were up 6% year over year. The company secured $683 million in bookings during the quarter, with a book-to-bill ratio of 1.4 and trailing 12-month bookings surpassed $3 billion, with a book-to-bill ratio of 1.5. Funded backlog reached $1.5 billion at quarter-end, up 37% year over year, while total funded and unfunded backlog stood at more than $2.8 billion.
The Autonomous Systems segment remains the company's principal growth engine. The segment delivered 21% year-over-year revenue growth, with Uncrewed Aircraft Systems revenues up 71%, driven by strong domestic and international demand for P550, JUMP 20-X and Puma.
AeroVironment, Inc. Revenue (Quarterly)
AeroVironment, Inc. revenue-quarterly | AeroVironment, Inc. Quote
AeroVironment reaffirmed fiscal 2027 revenues of $2.125-$2.225 billion, representing approximately 10% growth at the midpoint.
ONDS’ Price Performance, Valuation and Estimates
ONDS’ shares have lost 1.3% in the past month against the Wireless-National industry’s growth of 11.9%
Image Source: Zacks Investment Research
The stock is trading at a 12-month forward price/sales ratio of 4.51X, considerably lower than the industry’s multiple of 8.49X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ONDS’ earnings for the current year has been revised downward over 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.