Ondas Holdings Inc. (NASDAQ: ONDS) entered into a memorandum of understanding with Heidelberg Druckmaschinen AG on December 17, 2025, to jointly engineer, manufacture, and deploy Ondas Autonomous Systems (OAS) across Europe. The agreement leverages Heidelberg’s precision‑engineering and high‑volume production capabilities, as well as its established distribution network, to bring OAS drones, ground robots, and cyber‑over‑RF systems closer to European defense and critical‑infrastructure customers.
The partnership is designed to accelerate Ondas’ entry into markets where it currently has limited manufacturing presence. By localizing production, the company expects to reduce lead times, lower unit costs, and meet the growing demand for counter‑UAS and autonomous solutions in the region. Heidelberg’s expertise in software, power electronics, and industrial automation is expected to enable rapid scaling of production while maintaining the high reliability required for defense applications.
Ondas has demonstrated rapid revenue growth, reporting $10.1 million in Q3 2025—an increase of 582% year‑over‑year—and has raised its 2025 revenue target to at least $36 million. The company has also set a preliminary 2026 revenue target of $110 million. With $433.4 million in cash and cash equivalents and a pro‑forma balance of roughly $840 million after a recent equity offering, Ondas has the liquidity to pursue strategic investments such as this alliance and its ongoing acquisition program.
CEO Eric Brock emphasized that the partnership aligns with Europe’s defense modernization cycle, stating, “Europe is entering a generational investment cycle in defense modernization, with a clear mandate for autonomous capabilities, resilient supply chains, and the localization of critical technologies.” Heidelberg CEO Jürgen Otto added, “Our precision‑engineering and automation expertise will enable the rapid production of reliable autonomous systems, strengthening local value creation in Germany and across Europe.”
The announcement has been well received by market participants, who view the alliance as a key driver for Ondas’ expansion into high‑growth defense segments. Analysts have highlighted the company’s strong revenue trajectory, the strategic fit of Heidelberg’s manufacturing footprint, and the potential for the partnership to accelerate the company’s 2026 revenue target. The deal also positions Ondas to capture a larger share of the projected counter‑UAS market, which is expected to grow from $2.4 billion in 2024 to over $10.5 billion by 2030.
The collaboration is expected to reinforce Ondas’ competitive position in the European market, support its ambitious revenue guidance, and provide a scalable platform for future product launches. By combining Heidelberg’s production capabilities with Ondas’ autonomous technology, the company aims to deliver cost‑effective, high‑quality solutions that meet the stringent requirements of defense and critical‑infrastructure customers.
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