Ondas: Overpriced or Future $10B Defense Prime?

ONDAS trades at 80× sales — here’s what the market might be betting on

This year drone makers have broken through, fueled by Pentagon investment and the broader push to integrate AI into defense and, eventually, robotics. Names like ZenaTech, Red Cat, Kratos, and AeroVironment have all gained visibility with investors — and we’ve covered them before.

Ondas ($ONDS) stands out in this group not just for defense contracts, but for its footprint in a strategically critical sector: U.S. railroads. Once you’re embedded in the core of American infrastructure, replacing you becomes extremely difficult. Bureaucratically, no one wants to restart the approval process from scratch.

The stock has doubled this year, and that’s why we’re taking a closer look.

What Ondas Sells in Plain Terms

• For railroads: a private wireless network that replaces outdated radio systems.
  👉🏻 If you’re a railroad operator, you face mandatory federal upgrades for train safety and data communication. Ondas delivers its FullMAX software-defined radio already approved by the Association of American Railroads and distributed through Siemens.

  It lets trains communicate more reliably, reduces the risk of accidents, and creates a digital backbone that can handle automation and predictive maintenance — things old 1980s radio tech could never support.

• For infrastructure operators: the Optimus drone-in-a-box.
  👉🏻 If you run an airport, factory, or data center, security and monitoring costs are constant pain points. Optimus provides continuous aerial coverage: the drone launches on its own, patrols, lands, and recharges automatically.

  With FAA type certification, it can legally fly over people and beyond line of sight in the U.S., giving you regulatory cover and real operational value. It’s essentially a permanent, automated security guard in the sky that doesn’t need shifts or breaks.

• For defense and security agencies: the Iron Drone Raider.
  👉🏻 If you’re tasked with protecting critical facilities, drones are now a real threat — from espionage to smuggling to direct attacks. Raider is an autonomous interceptor that detects, tracks, and neutralizes hostile drones without human pilots.

  European and Asian governments have already procured and fielded the system, proving it’s viable at scale. For agencies, it offers a way to secure sensitive airspace without relying on traditional, manpower-heavy defenses.

Source: ONDAS

Together, these products put Ondas in three critical markets at once: rail infrastructure, industrial security, and defense airspace control. That combination is unusual — few companies operate across both civilian infrastructure and defense with regulatory approvals in hand.

Explosive Growth Meets Heavy Burn

Ondas delivered its strongest quarter to date, showing rapid revenue growth but still running heavy losses as it invests in scale.

Revenue reached $6.27M, compared to just $0.96M in Q2 2024 — a six-fold increase. Sequentially, revenue was up 48%. The company now has a $22M backlog, giving visibility into hitting its $25M+ guidance for 2025.