Ondas (ONDS) is growing rapidly, and the businesses it acquired are performing well and appear well positioned to continue. Meanwhile, the Street remains very bullish on ONDS stock, and the new president of the company’s defense unit should meaningfully strengthen its relationship with the Israeli and American governments.
Given the company’s powerful growth and multiple, intense, upbeat catalysts, its valuation is quite attractive, and growth investors should consider buying shares.
Rapid Growth and High-Performing Businesses
Ondas provided year-over-year revenue growth data assuming all businesses it acquired after the second quarter of 2025 had been part of the firm during Q2 of 2025. In other words, ONDS compared the combined sales in Q2 of 2025 of itself and of all of the companies that it acquired after that quarter to the total revenue that they all generated last quarter.
Based on that calculation, known as pro forma revenue growth, Ondas’ sales climbed an impressive 85% year over year in Q2.
Its backlog also rose 33% from Q1 to Q2, reaching an impressive $757 million as of the end of Q2.
Revenue from its Airobotics unit, which has developed a promising counter-drone offering and provides “autonomous drone infrastructure,” grew 112% year over year in Q2. With many countries, including the U.S. and Israel, urgently looking for affordable ways to combat drones, Airobotics’ sales could very well continue to soar going forward.
Ondas’ Sentrycs unit, which develops “cyber-over-RF systems” that combat drones, is already benefiting tremendous from this trend, as its sales soared 298% YOY.
Moreover, 4M, which specializes in AI-powered robotic demining delivered year-over-year revenue growth of 258% in Q2. In 2026, the company won $80 million of demining contracts from Israel. In light of the recent wars in the Middle East and Ukraine, the demand for 4M’s offering could continue to jump significantly going forward.
Rotron, which develops autonomous drones and long-range engines for drones, generated about $34.2 million of orders for Ondas in Q2, versus its expected 2026 revenue of $25 million. As the use of drones by militaries continues to grow exponentially, Rotron should keep delivering strong metrics.
And finally, Ondas CEO Eric Brock said, “We continue to see a particularly strong organic ramp across the Ondas Autonomous Systems businesses.” So it sounds as though the firm’s core autonomous drone business has also been performing well.
Wall Street Is Bullish on ONDS and Its New Executive Should Be a Major Asset
Of the 10 Wall Street analysts who evaluate Ondas, eight give it a Strong Buy rating and one has a Moderate Buy rating on the name.
Additionally, Roth Capital, a fairly prominent investment bank, on August 19 kept its $13 price target and Buy rating on the shares. Roth was pleased with Ondas’ acquisition of Aran Defense, a weapons components maker that’s based in Israel. According to Roth, the deal will help Ondas meet the increasing demand for its products.
Meanwhile, another investment bank, Ladenburg Thalmann, reacted to the company’s Q2 results by raising its price target on the name to $22.75 from $21.50 while keeping a Buy rating on it.
And one of the biggest investors on the Street, BlackRock, on August 1 disclosed that it had obtained a 7.2% passive stake in Ondas.
On August 3, Ondas named David Barnea, the former head of Israel’s intelligence agency, Mossad, as the President and chairman of the firm’s defense subsidiary.
Of course, Barnea likely has many close connections within the defense establishment in Israel, which is rapidly increasing its spending on the military. And, as I mentioned earlier, Israel is urgently seeking affordable counter-drone solutions.
What’s more, Barnea frequently met with very senior figures in the American government, so he probably has very good connections in Washington as well.
In light of these points, I believe that Barnea can help Ondas land many more major deals in both the U.S. and Israel.
Valuation and the Bottom Line on ONDS Stock
Ondas’ shares are changing hands at a forward price-earnings ratio of 51.5 times, That’s a bargain, given the firm’s powerful growth and its many, powerful, positive catalysts.
*This article is intended to be informational only; it is not financial advice.
