Ondas CEO Eric Brock stated that the global defense technology sector has entered a phase where manufacturing scale and supply chain localization have become the primary challenges, following the company's $875.8 million acquisition of DZYNE. Speaking to Bloomberg, Brock said governments are prioritizing domestic defense production capabilities, creating demand for companies that can support large-scale autonomous systems manufacturing. The CEO noted that over 20 years of deindustrialization in the United States shifted supply chains to China, prompting policymakers across the White House, Congress and Pentagon to rebuild the nation's defense industrial base.
Ondas CEO Identifies Manufacturing Scale as Defense Industry Priority
Brock told Bloomberg that the industry's ability to develop advanced drone technologies is no longer in doubt. "Certainly the arms race has started and it's not a question of will we be able to develop these unmanned systems or not, or we will be able to produce the drones," Brock said. He identified the greater challenge as expanding manufacturing capacity, strengthening supply chains and creating operating platforms capable of producing and supporting autonomous systems at scale.
"It's well understood that over the last 20 plus years, we have deindustrialized in the United States. That means the supply chain has moved to China," Brock stated. According to the CEO, policymakers are now prioritizing efforts to rebuild the nation's defense industrial base, creating opportunities for companies supporting domestic production.
Brock said the unmanned and autonomous systems industry is entering the early stages of a broad adoption cycle after years of technological development. "This is after a long period of what I would call foundational work in terms of developing and maturing the tech stack. So the things you're seeing today in the battlefield were really started to be incubated well over a decade ago," Brock said.
Ondas stock edged 0.1% higher overnight, heading into Tuesday.
Ondas Acquires DZYNE for $875.8 Million, Raises 2026 Revenue Forecast to $525 Million
Ondas acquired DZYNE for $875.8 million, consisting of $200 million in cash and approximately 85 million shares worth $675 million. Brock said the acquisition broadens Ondas' defense offerings by adding persistent intelligence, surveillance and reconnaissance capabilities to its existing counter-drone portfolio.
The company increased its 2026 revenue forecast to at least $525 million from $390 million. DZYNE is expected to contribute $191 million in 2026 and more than $300 million in 2027 while remaining EBITDA-positive.
Brock identified the U.S. Department of Defense and other American military organizations as key customers. He said Ondas is building an international operating platform to supply allied nations across Europe and the Middle East while adapting operations to local market requirements through regional partnerships.
Retail Traders Show Bullish Sentiment on ONDS Stock
On Stocktwits, retail sentiment around Ondas stock remained in 'bullish' territory with a 218% rise in message volume in 24 hours. One user noted that the DZYNE deal shares include a clause extending the lockout period if the share price exceeds $20 in January, suggesting potential for significant price movement in the next six months.
Another user stated, "There cannot be much M&A left. Now it is performance with contracts and financial results with the company. The challenge is winning contracts. Eric has built a diverse company to build at scale for anticipated change in warfare."
ONDS stock has declined 19% year-to-date.
FAQ
What did Ondas CEO Eric Brock say about the defense industry?
Brock stated that the global defense technology sector has entered a phase where manufacturing scale and supply chain localization are the primary challenges. He said the arms race has started and the focus has shifted from developing unmanned systems to producing them at industrial scale.
How much did Ondas pay to acquire DZYNE?
Ondas acquired DZYNE for $875.8 million, consisting of $200 million in cash and approximately 85 million shares worth $675 million. The company raised its 2026 revenue forecast to at least $525 million from $390 million following the acquisition.
