Ondas Holdings Inc. has committed $35 million to Performance Drone Works, a Huntsville‑based defense‑technology manufacturer, to scale the company’s Drone Factory 01. The 90,000‑square‑foot facility is capable of producing up to 100,000 NDAA‑compliant advanced drone systems annually, a capacity that is expected to support the growing demand for domestic, high‑performance autonomous platforms.
The investment is part of Ondas’ strategy to strengthen its Ondas Autonomous Systems (OAS) segment and to secure a reliable supply of domestically sourced components amid geopolitical tensions that have tightened access to critical parts. By expanding PDW’s production footprint, Ondas aims to reduce lead times for U.S. military and homeland‑security customers and to enhance supply‑chain resilience, a key priority for defense contractors facing component shortages.
Ondas reported record Q3 2025 revenue of $10.1 million, a 582% year‑over‑year increase, and a net loss of $7.48 million. Gross margin rose to 26% from 3% in Q3 2024, reflecting improved pricing power and operational leverage. The company reiterated its guidance for at least $20 million in OAS revenue for the full year and raised its overall 2025 revenue target to $36 million, up from $25 million. The $20.9 million U.S. Army contract awarded to PDW further underscores the strategic importance of the partnership.
Market reaction to the investment and Q3 results has been positive, driven by the combination of a substantial capital infusion, a dramatic revenue surge, and a clear path to scaling production. CEO Eric Brock emphasized the significance of the partnership, stating, “We believe PDW has become one of the most important and trusted aerial robotics companies in the United States. Their combat‑validated technology, industrial‑scale manufacturing, and mission‑focused culture set a new standard in our sector.”
The investment positions Ondas to capture a larger share of the autonomous‑systems market, accelerate the rollout of its Optimus and Iron Drone platforms, and convert backlog into revenue. With a strengthened balance sheet from a recent equity offering and a clear focus on domestic manufacturing, Ondas is poised to meet the growing demand for NDAA‑compliant drones while mitigating supply‑chain risks.
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