We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ondas Plans U.S. Manufacturing Push to Scale ULTRA Aircraft Output
Read MoreHide Full Article
Key Takeaways
Ondas targets ULTRA aircraft production of 10 units monthly by 2028 to address growing ISR demand.
The proposed Stemme acquisition will support manufacturing expansion.
Ondas' strong order momentum boosts revenue visibility into 2027.
Ondas Inc. (ONDS - Free Report) recently announced plans to expand the manufacturing capacity of its ULTRA intelligence, surveillance and reconnaissance (“ISR”) aircraft, targeting production of 10 aircraft per month by 2028. The initiative aims to address growing demand for affordable, long-endurance surveillance capabilities along with additional dual-use opportunities across U.S. and allied defense markets.
To support this expansion, the company signed a definitive agreement to acquire Germany-based Stemme GmbH, ULTRA's existing airframe manufacturer, in an all-cash transaction. The acquisition, expected to close in the first quarter of 2027, is subject to regulatory approvals and customary closing conditions. Stemme manufactures ULTRA's S12 airframe.
The proposed buyout will support onshoring and localization of airframe production in the United States, added Ondas. Stemme currently operates at approximately 25% capacity across its German facilities, spanning 135,571 square feet.
Ondas intends to increase utilization of these facilities while establishing 345,000 square feet of planned U.S. production space. Ondas highlighted that the expansion could shorten supply chains, accelerate deliveries and boost responsiveness to domestic defense requirements.
LTRA, already operationally deployed by the U.S. Air Force, offers more than 70 hours of flight and over 400 pounds of payload capacity. Its capabilities also create opportunities across maritime surveillance, border security, environmental and commercial infrastructure monitoring.
Ondas Holdings Inc. Price, Consensus and EPS Surprise
The expansion builds on Ondas' growing order momentum. On Oct. 7, 2026, Ondas 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.
The planned manufacturing expansion could strengthen Ondas' competitive position in persistent ISR markets. However, successful integration and conversion of demand into deliveries will be crucial to realizing these opportunities.
ONDS is scheduled to report third-quarter 2026 results on Nov. 12. During ONDS’ second-quarter earnings call, management projected third-quarter revenues between $140 million and $155 million and raised its full-year revenue target to $525-$550 million.
Mapping the Competitive Terrain
AeroVironment (AVAV - Free Report) has a strong foothold in the unmanned ISR market through its P550, JUMP 20 and JUMP 20-X platforms. In October, AeroVironment and Alpha Unmanned Systems signed a memorandum of understanding to explore JUMP 20 support capabilities in Spain. The company won a $117.3 million U.S. Army contract for its P550 aircraft under the Long-Range Reconnaissance program in July this year.
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 in the first quarter of fiscal 2027.
Textron Inc. (TXT - Free Report) is strengthening its position in the unmanned ISR market through the Aerosonde aircraft portfolio. In September 2026, Aerosonde UAS successfully completed commercial-airspace flights using vertiports in Virginia, demonstrating its expanding operational capabilities. The company also reported its first commercial Aerosonde delivery in Africa, involving three UAS Mk. 4.7 VTOL systems in Nigeria.
In the third quarter of 2026, Textron Systems segment revenues increased 16% year over year to $360 million, driven by primarily by higher volume on armored land vehicles and military training and support services provided by Airborne Tactical Advantage Company. Textron Systems segment comprises UAS, electronic systems and solutions, advanced marine craft, piston aircraft engines, live military training, and armored and specialty vehicles.
ONDS’ Price Performance, Valuation and Estimates
ONDS’ shares have lost 10.5% in the past month, compared with the Wireless-National industry’s decline of 13.9%
Image Source: Zacks Investment Research
ONDS is trading at a 12-month forward price/sales ratio of 3.57X, considerably lower than the industry’s multiple of 5.97X.
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
Ondas Plans U.S. Manufacturing Push to Scale ULTRA Aircraft Output
Key Takeaways
Ondas Inc. (ONDS - Free Report) recently announced plans to expand the manufacturing capacity of its ULTRA intelligence, surveillance and reconnaissance (“ISR”) aircraft, targeting production of 10 aircraft per month by 2028. The initiative aims to address growing demand for affordable, long-endurance surveillance capabilities along with additional dual-use opportunities across U.S. and allied defense markets.
To support this expansion, the company signed a definitive agreement to acquire Germany-based Stemme GmbH, ULTRA's existing airframe manufacturer, in an all-cash transaction. The acquisition, expected to close in the first quarter of 2027, is subject to regulatory approvals and customary closing conditions. Stemme manufactures ULTRA's S12 airframe.
The proposed buyout will support onshoring and localization of airframe production in the United States, added Ondas. Stemme currently operates at approximately 25% capacity across its German facilities, spanning 135,571 square feet.
Ondas intends to increase utilization of these facilities while establishing 345,000 square feet of planned U.S. production space. Ondas highlighted that the expansion could shorten supply chains, accelerate deliveries and boost responsiveness to domestic defense requirements.
LTRA, already operationally deployed by the U.S. Air Force, offers more than 70 hours of flight and over 400 pounds of payload capacity. Its capabilities also create opportunities across maritime surveillance, border security, environmental and commercial infrastructure monitoring.
Ondas Holdings Inc. Price, Consensus and EPS Surprise
Ondas Holdings Inc. price-consensus-eps-surprise-chart | Ondas Holdings Inc. Quote
The expansion builds on Ondas' growing order momentum. On Oct. 7, 2026, Ondas 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.
The planned manufacturing expansion could strengthen Ondas' competitive position in persistent ISR markets. However, successful integration and conversion of demand into deliveries will be crucial to realizing these opportunities.
ONDS is scheduled to report third-quarter 2026 results on Nov. 12. During ONDS’ second-quarter earnings call, management projected third-quarter revenues between $140 million and $155 million and raised its full-year revenue target to $525-$550 million.
Mapping the Competitive Terrain
AeroVironment (AVAV - Free Report) has a strong foothold in the unmanned ISR market through its P550, JUMP 20 and JUMP 20-X platforms. In October, AeroVironment and Alpha Unmanned Systems signed a memorandum of understanding to explore JUMP 20 support capabilities in Spain.
The company won a $117.3 million U.S. Army contract for its P550 aircraft under the Long-Range Reconnaissance program in July this year.
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 in the first quarter of fiscal 2027.
Textron Inc. (TXT - Free Report) is strengthening its position in the unmanned ISR market through the Aerosonde aircraft portfolio. In September 2026, Aerosonde UAS successfully completed commercial-airspace flights using vertiports in Virginia, demonstrating its expanding operational capabilities. The company also reported its first commercial Aerosonde delivery in Africa, involving three UAS Mk. 4.7 VTOL systems in Nigeria.
In the third quarter of 2026, Textron Systems segment revenues increased 16% year over year to $360 million, driven by primarily by higher volume on armored land vehicles and military training and support services provided by Airborne Tactical Advantage Company. Textron Systems segment comprises UAS, electronic systems and solutions, advanced marine craft, piston aircraft engines, live military training, and armored and specialty vehicles.
ONDS’ Price Performance, Valuation and Estimates
ONDS’ shares have lost 10.5% in the past month, compared with the Wireless-National industry’s decline of 13.9%
Image Source: Zacks Investment Research
ONDS is trading at a 12-month forward price/sales ratio of 3.57X, considerably lower than the industry’s multiple of 5.97X.
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.