Ondas Holdings, a leader in AI-driven autonomous drones and private wireless networks, has taken a significant step forward in its defence technology ambitions. The company announced an initial order of 500 Wasp drones from Norway-based Rift Dynamics, a strategic partner and defence technology innovator. These drones will be distributed in the US defence market through Ondas’ subsidiary, American Robotics. The news sent Ondas’ shares soaring nearly 26% to $9.21 (£6.85) per share, underscoring investor confidence in the company’s strategic direction.
The Wasp drone system, designed for affordability and attritability, aligns with the US Department of War’s growing demand for mass-produced strike and perimeter defence platforms. Eric Brock, Chairman and CEO of Ondas, emphasised the company’s ability to rapidly scale production, leveraging Rift’s NDAA-compliant design and Kitron’s global manufacturing expertise. With US distribution rights secured, Ondas is poised to capitalise on the Department of War’s program bids, with initial deliveries expected in Q4.
This development comes on the heels of Ondas’ impressive 730% stock price surge over the past six months, fueled by its inclusion in the S&P Global BMI Index and the appointment of Brigadier General Patrick Huston to its Ondas Autonomous Systems Advisory Board. The company’s recent acquisition of Apeiro, a provider of rugged unmanned ground vehicles and fibre-optic communication technologies, further solidifies its position in the defence tech space. A $3.5 million (£2.6 million) order from a major defence company, secured last week, highlights the growing demand for Ondas’ advanced ground robotics solutions.
Analysts view Ondas’ recent market presence and the ‘large greenfield opportunity’ as catalysts for further upward revisions in earnings and valuation multiples. Despite the stock’s impressive run, they believe the growth cycle is still in its early stages, with a near-term addressable market exceeding $5 billion (£3.7 billion). However, rising operating costs and network deployment delays pose potential risks to the company’s valuation surge.
As Ondas continues to expand its defence technology portfolio and secure high-profile contracts, it is positioning itself as a key player in the rapidly evolving military technology landscape. The company’s strategic investments, partnerships, and acquisitions are not only driving its growth but also shaping the future of autonomous systems in defence. With a strong pipeline of orders and a clear vision for scaling production, Ondas is well-positioned to capitalise on the increasing demand for affordable and attritable drone systems.