CEO Eric Brock said the award validates Ondas’ position as a “prime contractor” for next-generation defense programs.
- The program will cover the drone platform, autonomous capabilities, mission integration, and compatibility with command-and-control systems.
- The contract value was not disclosed, leaving its potential near-term revenue contribution unclear.
- The award adds to Ondas’ growing defense presence in Israel, including border-security and tactical robotics programs.
Shares of Ondas (ONDS) dipped on Tuesday morning even after the company announced it won a multi-million-dollar strategic tender by the Israeli Ministry of Defense to develop ‘Digital Bat’ drones.
CEO Eric Brock said the award validates Ondas as a “prime contractor” as it expands deeper into scalable autonomous strike systems for allied defense markets. “We are seeing a fundamental shift in defense priorities toward affordable autonomous systems that can be produced and deployed at a significant scale,” he added.
ONDS stock fell more than 1% in morning trade amid a muted broader market. Retail sentiment around the defense contractor trended in ‘bullish’ territory over the past day, accompanied by chatter at ‘high’ levels.
Neither Ondas nor the Israeli Ministry of Defense disclosed a dollar figure for the award.
Ondas To Develop ‘Digital Bat’ Tactical Attack Drones
Under the program, Ondas will lead development of a new generation of low-cost tactical attack drones designed for rapid deployment and adaptation across frontline combat units, according to the company’s announcement.
The scope covers the full build from aerial platform and autonomous functionality to mission integration and compatibility with existing command-and-control networks.
However, the Digital Bat program has more than one contractor. Israeli outlet Calcalist reported in July that two Israeli startups, Kela and eyeAtop, were separately selected to build the autonomous command-and-control software for the same Digital Bat attack drone initiative, beating Ondas for that piece of the program. Tuesday’s award appears to cover the airframe and platform development instead.
Ondas Expands Israeli Defense Footprint
The award adds to a growing list of Israel-linked defense programs for Ondas. The company’s 4M Defense unit has built roughly $80 million in active tender value tied to Israel’s border-security demining program, including a $10 million order for the Eastern Border Security Barrier initiative announced in April.
Ondas also completed its acquisition of Roboteam in December, adding tactical ground robots already used by the Israeli Ministry of Defense and the U.S. Marine Corps.
The announcement comes before Ondas is scheduled to report its second-quarter (Q2) earnings on Thursday. Wall Street expects the company to report a loss of $0.07 per share on revenue of $68 million.
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