The convergence of AI, autonomous drones, cloud software and critical infrastructure management is reshaping industries worldwide. In a strategic move, Ondas Inc. ONDS recently announced its planned $125 million acquisition of Cyberhawk, a top provider of drone-based infrastructure inspection and AI-powered asset intelligence. Management indicated that approximately 95% of the consideration will be in stock, reducing immediate cash needs while aligning Cyberhawk shareholders with Ondas' long-term performance. The acquisition also requires regulatory approvals before the expected closing in the third quarter of 2026.
The strategic value of the Cyberhawk acquisition lies in its complementary capabilities. Cyberhawk brings drone inspections, digital twins, cloud-based infrastructure management and AI analytics, while Ondas contributes autonomous aerial systems, mission automation and advanced sensing technologies. Together, they create an end-to-end infrastructure intelligence platform spanning data collection, cloud visualization, AI-driven analysis and predictive maintenance. This integrated ecosystem enhances customer value and opens multiple recurring revenue opportunities.
Cyberhawk enhances Ondas both financially and strategically. The company is projected to generate more than $45 million in revenue for the fiscal year ending March 2027, starting with high-single-digit EBITDA margins and aiming for EBITDA margins exceeding 25% by 2030. About 95% of Cyberhawk's revenue comes from recurring sources, including multi-year contracts, software subscriptions and long-term infrastructure inspection agreements. Recurring revenue improves predictability, reduces earnings volatility and often attracts higher valuation multiples than project-based businesses. Cyberhawk also has a $95 million backlog, offering visibility into future growth.
ONDS is on an acquisition spree. Last month, it agreed to acquire Omnisys, adding AI-powered battlefield orchestration software to its defense portfolio. This is followed by prior buyouts of Rotron Aerospace, Mistral Inc., Bird Aero, Indo-Earth and World View, strengthening its capabilities across loitering munitions, counter-missile defense systems, military engineering equipment and stratospheric surveillance solutions.
Are ONDS’ Rivals Also Betting on Acquisitions?
Draganfly DPRO recently completed the acquisition of Skip Dynamix, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.
Last month, Unusual Machines UMAC agreed to acquire Upgrade Energy for approximately $52 million, adding battery and power system expertise to its drone components business. The deal expands the company’s product portfolio, strengthens domestic manufacturing capabilities, and supports future production growth through additional U.S. facilities. In 2025, UMAC completed the acquisition of Rotor Lab, adding high-performance drone motor and propulsion technologies to its portfolio. The deal strengthens its commercial and defense offerings, supports U.S. manufacturing expansion and enhances motor design and engineering capabilities. It also agreed to acquire Aloft Technologies for $14.5 million, adding leading drone fleet and airspace management capabilities to its portfolio.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have gained a whopping 486.7% in the past year against the Zacks Wireless-National industry’s decline of 14.5%
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ONDS seems overvalued, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 8.63, considerably higher than the industry’s multiple of 1.6.
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For ONDS, earnings estimates for the current year have remained unchanged in the past 30 days.
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ONDS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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