Ondas CEO Eric Brock said defense drone competition is shifting toward manufacturing scale and localized supply chains.
- Brock said Ondas expects strong long-term demand as governments strengthen domestic defense production.
- He said the industry's biggest challenge is scaling manufacturing.
- Brock said the $875.8 million DZYNE acquisition expands Ondas' defense portfolio with intelligence, surveillance and reconnaissance capabilities.
Ondas (ONDS) stock is in the spotlight as CEO Eric Brock believes the global race to develop unmanned and autonomous defense technologies has entered a new phase, with the industry's focus shifting from innovation to large-scale manufacturing and localized production.
Ondas CEO Says Focus Shifts To Industrial Scale
Speaking to Bloomberg, Brock said Ondas sees strong long-term demand as governments seek to strengthen domestic defense capabilities and reduce reliance on overseas supply chains.
“Certainly the arms race has started and it's not a question of will we be able to develop these unmanned systems or not, or we will be able to produce the drones.”
Brock added that the industry's ability to develop advanced drone technologies is no longer in doubt. Instead, he said the greater challenge lies in expanding manufacturing capacity, strengthening supply chains and creating operating platforms capable of producing and supporting autonomous systems at scale.
“It’s well understood that over the last 20 plus years, we have deindustrialized in the United States. That means the supply chain has moved to China,” said Brock.
According to Brock, policymakers across the White House, Congress and the Pentagon are now prioritizing efforts to rebuild the nation's defense industrial base, creating opportunities for companies that can support domestic production.
Ondas stock edged 0.1% higher overnight, heading into Tuesday.
Ondas’ DZYNE Deal Expands Defense Portfolio, Lifts Revenue Outlook
Brock said the DZYNE acquisition broadens Ondas' defense offerings by adding persistent intelligence, surveillance and reconnaissance capabilities to its existing counter-drone portfolio.
Ondas has acquired DZYNE for $875.8 million, consisting of $200 million in cash and about 85 million shares worth $675 million.
The company also increased its 2026 revenue forecast to at least $525 million from $390 million, with DZYNE expected to contribute $191 million in 2026 and more than $300 million in 2027 while remaining EBITDA-positive.
Brock added that the unmanned and autonomous systems industry is entering the early stages of a broad adoption cycle after years of technological development.
“This is after a long period of what I would call foundational work in terms of developing and maturing the tech stack. So the things you're seeing today in the battlefield were really started to be incubated well over a decade ago,” said Brock.
Brock identified the U.S. Department of Defense and other American military organizations as key customers but said Ondas is also building an international operating platform. The company plans to supply allied nations across Europe and the Middle East while adapting its operations to local market requirements through regional partnerships.
ONDS Retail Traders View
On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory with a 218% rise in message volume in 24 hours.
A user said, “an interesting aspect of the Dzyne deal is that the shares have a clause attached to them that extend the lockout on the shares if the Share price is >$20 in January. It appears that there is some thought being put into the potential of a big move in the next 6 months.”
Another user said, “There cannot be much M&A left. Now it is performance with contracts and financial results with the company. The challenge is winning contracts .Eric has built a diverse company to build at scale for anticipated change in warfare.”
ONDS stock has declined 19% year-to-date.
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