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Can Ondas Capitalize on FEMA's $500M Counter-Drone Funding Expansion?
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Key Takeaways
Ondas aims to capitalize on FEMA's expanded counter-UAS funding for nationwide drone security deployments.
Its integrated portfolio combines drone detection, tracking, identification and mitigation technologies.
Ondas delivered 3,000 Dronebuster units to 50-plus countries but faces competition from established providers.
Ondas Inc. (ONDS - Free Report) is positioning itself to capture a growing opportunity in the U.S. counter-unmanned aircraft systems (C-UAS) market as federal funding for drone security expands nationwide. With the Federal Emergency Management Agency (“FEMA”) extending its Counter-UAS Grant Program to state, local, tribal and territorial (SLTT) agencies nationwide, Ondas stands to benefit from increased demand for advanced drone detection, identification and mitigation technologies. Its recent initiative highlights its Aerial Security portfolio, civilian security deployments and experience supporting major sporting events as key competitive advantages.
The FEMA Counter-UAS Grant Program aims to strengthen U.S. defenses against unauthorized drone activity through two phases: an initial $250 million for jurisdictions hosting the 2026 FIFA World Cup and America 250 celebrations, followed by another $250 million for all 50 states, five territories and Washington, D.C. The expanded program also prioritizes the 2028 Summer Olympics and nationwide torch relay. Beyond major events, funding will support counter-drone security at airports, stadiums, government facilities and critical infrastructure. This creates growth opportunities for companies offering integrated counter-UAS solutions, including Ondas, while easing adoption costs for local law enforcement and public safety agencies.
Ondas offers an integrated counter-UAS portfolio covering drone detection, tracking, identification, mitigation and command-and-control. Its DTI systems, Sentrycs Cyber-over-RF technology, Dronebuster handheld and vehicle-mounted systems, and DefenseOS platform provide coordinated security capabilities. With more than 3,000 Dronebuster units delivered across 50-plus countries, Ondas is positioning itself as an integrated counter-drone security provider for public safety agencies and critical infrastructure.
However, Ondas faces stiff competition from established defense contractors and specialized counter-drone technology providers like AeroVironment (AVAV - Free Report) and Draganfly (DPRO - Free Report) .
How are ONDS’ Peers Positioned?
DPRO is benefiting from growing demand in the C-UAS market, supported by its 27 years of drone-building experience and deep understanding of UAS vulnerabilities. The company is expanding its counter-drone capabilities through a pragmatic strategy that combines proprietary technology with partnerships and integrations. A key catalyst is its DEVCOM contract to develop an ultralight, highly mobile counter-drone system for the U.S. Department of War. The platform features proprietary tracking and system-integration capabilities and supports multiple effectors, including kinetic and RF options. Management sees this as a significant opportunity, with potential to generate hundreds of millions of dollars over the coming years.
AVAV is gaining from rising demand for unmanned aircraft systems, precision-strike weapons and counter-drone technologies. Its growth is supported by strong adoption of Switchblade loitering munitions, P550 reconnaissance drones and JUMP 20 platforms. Recent contract wins include a $465 million U.S. Army award for its LOCUST laser weapon system and a $500 million IDIQ contract for its Titan counter-drone platform. The company is also expanding manufacturing capacity for LOCUST, Switchblade and Freedom Eagle-1 systems to address growing domestic and international demand. Its record funded backlog of $1.5 billion provides strong revenue visibility and supports long-term growth prospects.
ONDS’ Price Performance, Valuation and Estimates
ONDS’ shares have lost 22.5% in the past month compared with the Wireless-National industry’s decline of 18.4%.
Image Source: Zacks Investment Research
The stock is trading at a 12-month forward price/sales ratio of 3.47, well below the industry’s multiple of 6.01.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ONDS’ earnings for the current year has been unchanged over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Ondas Capitalize on FEMA's $500M Counter-Drone Funding Expansion?
Key Takeaways
Ondas Inc. (ONDS - Free Report) is positioning itself to capture a growing opportunity in the U.S. counter-unmanned aircraft systems (C-UAS) market as federal funding for drone security expands nationwide. With the Federal Emergency Management Agency (“FEMA”) extending its Counter-UAS Grant Program to state, local, tribal and territorial (SLTT) agencies nationwide, Ondas stands to benefit from increased demand for advanced drone detection, identification and mitigation technologies. Its recent initiative highlights its Aerial Security portfolio, civilian security deployments and experience supporting major sporting events as key competitive advantages.
The FEMA Counter-UAS Grant Program aims to strengthen U.S. defenses against unauthorized drone activity through two phases: an initial $250 million for jurisdictions hosting the 2026 FIFA World Cup and America 250 celebrations, followed by another $250 million for all 50 states, five territories and Washington, D.C. The expanded program also prioritizes the 2028 Summer Olympics and nationwide torch relay. Beyond major events, funding will support counter-drone security at airports, stadiums, government facilities and critical infrastructure. This creates growth opportunities for companies offering integrated counter-UAS solutions, including Ondas, while easing adoption costs for local law enforcement and public safety agencies.
Ondas offers an integrated counter-UAS portfolio covering drone detection, tracking, identification, mitigation and command-and-control. Its DTI systems, Sentrycs Cyber-over-RF technology, Dronebuster handheld and vehicle-mounted systems, and DefenseOS platform provide coordinated security capabilities. With more than 3,000 Dronebuster units delivered across 50-plus countries, Ondas is positioning itself as an integrated counter-drone security provider for public safety agencies and critical infrastructure.
However, Ondas faces stiff competition from established defense contractors and specialized counter-drone technology providers like AeroVironment (AVAV - Free Report) and Draganfly (DPRO - Free Report) .
How are ONDS’ Peers Positioned?
DPRO is benefiting from growing demand in the C-UAS market, supported by its 27 years of drone-building experience and deep understanding of UAS vulnerabilities. The company is expanding its counter-drone capabilities through a pragmatic strategy that combines proprietary technology with partnerships and integrations. A key catalyst is its DEVCOM contract to develop an ultralight, highly mobile counter-drone system for the U.S. Department of War. The platform features proprietary tracking and system-integration capabilities and supports multiple effectors, including kinetic and RF options. Management sees this as a significant opportunity, with potential to generate hundreds of millions of dollars over the coming years.
AVAV is gaining from rising demand for unmanned aircraft systems, precision-strike weapons and counter-drone technologies. Its growth is supported by strong adoption of Switchblade loitering munitions, P550 reconnaissance drones and JUMP 20 platforms. Recent contract wins include a $465 million U.S. Army award for its LOCUST laser weapon system and a $500 million IDIQ contract for its Titan counter-drone platform. The company is also expanding manufacturing capacity for LOCUST, Switchblade and Freedom Eagle-1 systems to address growing domestic and international demand. Its record funded backlog of $1.5 billion provides strong revenue visibility and supports long-term growth prospects.
ONDS’ Price Performance, Valuation and Estimates
ONDS’ shares have lost 22.5% in the past month compared with the Wireless-National industry’s decline of 18.4%.
Image Source: Zacks Investment Research
The stock is trading at a 12-month forward price/sales ratio of 3.47, well below the industry’s multiple of 6.01.
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 #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.