Government Contracts Worth Millions Lift Investor Interest in Ondas Ahead of Results
Key Facts
Ondas announced contracts worth millions of dollars with government entities in Europe and Asia, as markets await its quarterly results, due to be announced on November 12. The contracts included counter-drone systems, including a European order for a police organization and an Asian order for autonomous interception systems. The deals come as the company expands its defense and reconnaissance solutions, alongside a plan to increase production of its long-range ULTRA aircraft. On November 5, the company said it is targeting production of 10 aircraft per month by 2028. ONDS closed at $4.52 on November 5, after closing at $5.27 on November 4, according to EL7 data.
In an announcement issued on November 4, Ondas said it had secured multimillion-dollar contracts with “major government customers” in Europe and Asia. The European agreement included portable Ranger systems for a police organization, while the Asian order covered Iron Drone Raider autonomous kinetic interception systems. The contracts show two different approaches to countering unmanned aircraft: portable systems for use by a security agency and autonomous interception designed to engage threats directly. The company did not disclose the value of each contract or when the systems would be delivered in the information published. The announcement signals the reach of demand the company is targeting beyond the United States, but by itself does not specify the contracts’ impact on revenue in coming periods.
According to the company, Raider systems are designed to address threats including aircraft operating without active radio-frequency communications or relying on autonomous navigation. This description points to the types of threats the company says the interception system was designed to counter, as part of the Asian government customer’s order. The European police contract, meanwhile, concerns portable Ranger systems, a different category from the autonomous interception represented by Raider. The company provided no figures in its contract announcement on the number of units or delivery schedule. The announcement of these solutions comes ahead of the release of third-quarter results, putting the contracts and production plans among the operational developments investors will follow when the figures are released.
On November 5, Ondas unveiled a plan to expand manufacturing in the United States to increase production of ULTRA, an aircraft designed for reconnaissance, intelligence and surveillance. The company is targeting production of 10 aircraft per month by 2028. It said ULTRA is operationally deployed by the U.S. Air Force and can fly for more than 70 hours with a payload exceeding 400 pounds. These specifications place the aircraft within the company’s plans to expand its long-range aviation capabilities, while the announced production target is tied to a date extending to 2028. The announcement did not include a figure for the spending required for the expansion or when the targeted production levels would begin to be reached.
The contracts and expansion plan come against the backdrop of Ondas’ financial outlook for the current year. In its second-quarter results announcement, the company raised its 2026 revenue target to a range of $525 million to $550 million, saying this represented an increase of more than 10 times its 2025 results. It also forecast third-quarter revenue of $140 million to $155 million, with adjusted EBITDA losses declining sequentially. Chief Executive Eric Brock said the company expects to “sustain this momentum and deliver another significant increase in revenue during the second half of 2026.” These forecasts provide context for assessing the third-quarter results, which will show how close quarterly performance came to the range announced by the company.
The company said announced backlog stood at about $613 million on June 30, 2026. Backlog totaled $757 million on a pro forma basis after accounting for DZYNE and Cyberhawk, whose acquisitions closed in the third quarter. The two figures reflect the business base reported by the company in its second-quarter results announcement, with the pro forma figure differing because it includes the two companies. These figures do not represent revenue realized during the third quarter, but provide context for the scale of business the company cites alongside its financial targets. The company had said it expected to continue growing revenue in the second half of the year.
The next milestone for investors is the third-quarter results for the period ended September 30, 2026. Ondas scheduled a results call for Thursday, November 12, at 8:30 a.m. Eastern Time. The company had forecast quarterly revenue of $140 million to $155 million, alongside a sequential decline in adjusted EBITDA losses. The reported results will show whether those forecasts were met, while the call will give the company an opportunity to discuss operational and financial developments during the period. The event also follows the government contract announcements and plan to expand ULTRA production in early November.