Ondas Inc.: Hard to Stop
In the age of modern warfare, Ondas Inc.’s strategy is focused on inorganic growth. The company currently comprises 17 specialized firms to ensure the highest possible quality of autonomous defense systems. This has a significant impact on revenue, as evidenced by the latest figures. In the second quarter, revenue of USD 83.8 million was generated—a thirteenfold increase over the previous year. However, an EBITDA loss of USD 50.6 million was still reported. These negative results stem from massive investments intended to secure the company’s expansion. Due to this strong performance, the revenue forecast for full-year 2026 has been raised to USD 525-550 million.
CEO Eric Brock emphasized that ongoing global conflicts have exposed a severe shortage of drone defense and precision strike systems. To meet the needs of the armed forces, Ondas is significantly expanding its production capacity for the coming years. The order backlog stands at USD 757 million, while the global project volume exceeds USD 11 billion. To manage this growth, the company is utilizing the Palantir Foundry software. This initiative is led by experienced executives. Former Mossad Director David Barnea and retired US General Charles Flynn have joined the executive team.
As part of this growth strategy, Ondas Holdings has decided to acquire the defense division of the Israeli company Aran R&D. The purchase price of USD 33.56 million will be paid entirely in Ondas stock. Aran R&D expects this transaction to generate a pre-tax profit of approximately USD 25.17 million. For Ondas, this move marks its sixth acquisition in Israel and is also its first acquisition of a publicly traded company there.
Volatus Aerospace: On the Verge of a Crucial Growth Phase
Volatus Aerospace is setting the course for its next growth phase. In the second quarter of 2026, revenue rose by 49.5% quarter-over-quarter to CAD 8.42 million. Services increased sequentially by 59%, while equipment deliveries rose by 38%. Although revenue was lower than the previous year, a defense contract worth approximately CAD 2.6 million was delayed due to supply chain issues. This contract is expected to be fully completed by the end of 2026. The gross margin reached 29.3%, while adjusted EBITDA remained significantly negative at minus CAD 4.35 million.
More important than this snapshot is the strategic position. With CAD 59.2 million in cash and CAD 63.8 million in working capital, Volatus has the highest liquidity in its history. This enables the company to drive expansion without relying on operating cash flows in the short term. The focus is on the approximately 53,000-square-foot facility in Mirabel, which opened in June. There, manufacturing and system integration will be ramped up to address larger government and military programs.
CFO Abhinav Singhvi sees Volatus at a turning point. The company is increasingly evolving from an operator of unmanned systems into a vertically integrated aerospace and defense platform. In-house manufacturing, operational experience, and technologies such as the AI-based autonomy system V-Cortex are expected to cover the entire value chain in the future. With SKYDRA, the company is also adding a SaaS offering designed to increase the share of higher-margin recurring software revenue.
Even after the quarter ended, the strategy continued to advance through new partnerships for autonomous reconnaissance and heavy-lift aircraft. At the same time, the established business with energy, utility, and infrastructure customers remains intact. Management’s goal is clear. Long-term contracts, software, services, and defense are expected to lead Volatus toward sustainable profitability. With record liquidity, in-house production, and growing relationships with governments and NATO partners, the foundation for this is stronger than ever.
Kratos Defense: Order Backlog Is Booming
The US defense contractor Kratos Defense also reflected strong demand for drone technologies in its quarterly results. The company delivered impressive financial performance in the second quarter of 2026, exceeding analysts’ forecasts. Revenue increased by just under a third to USD 459 million compared to the same period last year. Earnings per share also came in higher than previously expected at USD 0.21.
A key driver of this growth is the expanding order backlog, which has increased by nearly half and now stands at a record high of more than USD 2 billion. As a result, the company raised its revenue forecast for the full year. Financial experts view the operating figures positively. Citizens Research confirmed its positive rating on the stock and set a price target of USD 105, while Piper Sandler recently upgraded the stock. Despite the solid financial results, the share price has fallen by about 32% since the beginning of the year. In addition, the stock remains relatively expensive based on its current earnings valuation.
On the operational side, the company secured major military projects. In cooperation with GE Aerospace, Kratos received a contract from the US Air Force to further develop and produce a new jet engine. This engine, now designated F143-ZZ-100, will be used as the second standard propulsion system for long-range missiles in the JASSM program. The engine is specifically designed for use in drones and long-range weapons and is intended to help strengthen domestic manufacturing capabilities in the US.
At the same time, the company is reporting technical advances in its unmanned systems. A drone from the Valkyrie series, modified for the US Marine Corps, completed a complex test flight this spring. During the flight, the system was successfully controlled over long distances and beyond direct line of sight. The drone cooperated with manned combat aircraft and carried out electronic warfare missions. Due to strong overall demand, preparations are currently underway for a significant expansion of annual production volumes.
Ondas is driving its expansion through acquisitions, massive capacity expansion, and a billion-dollar pipeline, but it must first convert these high investments into sustainable profits. With record liquidity, in-house manufacturing, and growing software and defense businesses, Volatus Aerospace has the foundation for its next growth spurt. Kratos Defense impresses with a record order backlog of over USD 2 billion and continues to expand its position in drones, rocket propulsion, and electronic warfare.
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