Ondas Inc.ONDS has entered the second half of 2026 with substantial order momentum and growing visibility into its revenue outlook. The company delivered record second-quarter revenue of approximately $83.8 million, up 67% sequentially and more than 13 times year over year. Pro forma organic revenue increased approximately 85% year over year, showing that growth is not simply being driven by acquisitions.
During the second quarter, Ondas secured $175 million in new orders, while order momentum continued into the third quarter, with approximately $105 million of additional orders captured quarter to date. The scale of the company's backlog also provides meaningful support for the expected second-half revenue ramp. Ondas' pro forma backlog was approximately $757 million at the end of June, up about 66% sequentially from $457 million in the first quarter.
On the last earnings call, the company highlighted that the increase reflected both newly acquired businesses and strong organic order capture, while more than $100 million of orders added in the third quarter has continued to expand the backlog. Importantly, the backlog is diversified across four market segments and geographies, providing revenue visibility that is not dependent on a single product, customer or region.
Several sizeable programs are positioned to contribute to the second-half revenue increase. Mistral is preparing deliveries against approximately $240 million of aggregated orders associated with the U.S. Army's LUS IDIQ. IonStrike is expected to begin commercial volume orders and initial deliveries, while INDO Earth is expected to begin fourth-quarter deliveries under a combat engineering vehicles program with approximately $140 million of total program potential. Rotron is also ramping production against material orders, having captured approximately $34.2 million in orders during the second quarter alone.
The company expects third-quarter revenue of $140 million to $155 million, implying another significant sequential increase, and has raised its full-year 2026 revenue target to $525 million-$550 million. Management expects major programs already in backlog to contribute meaningfully during the second half as orders convert into deliveries.
Overall, Ondas' second-half revenue outlook is supported by a combination of a $757 million backlog, more than $100 million of third-quarter orders already captured, and several substantial programs moving toward volume deliveries. Management expects this combination of order conversion and continued pipeline growth to sustain the company's revenue ramp through the remainder of 2026 and into 2027.
Taking a Look at ONDS’ Competitors
Red Cat HoldingsRCAT delivered record second-quarter 2026 revenue of $20.2 million, up 520% year over year, while first-half revenue reached $35.7 million, reflecting continued deliveries across its drone portfolio and execution on defense programs and international opportunities. The company remains confident in its $150 million to $180 million revenue target, supported by strong demand, expanded manufacturing capacity and production readiness. Red Cat also entered the second half with $50-$80 million of sellable drones that could ship once orders are received. Management expects revenue to ramp significantly in the third and fourth quarters, supported by new contracts and growing opportunities across aerial and maritime autonomy.
Kratos Defense’s KTOS second-quarter 2026 consolidated bookings were $492.2 million, implying a 1.1 book-to-bill, while the last 12-month book-to-bill was 1.3. Kratos’ backlog increased to approximately $2.1 billion at the end of the second quarter of 2026. The bid and proposal pipeline rose to $15 billion at June 28, 2026. Revenues grew 30.5% year over year to $458.8 million, including organic growth of 19.1%, and Kratos raised full-year 2026 revenue guidance to $1.75-$1.81 billion compared with the previous range of $1.7-$1.76 billion with adjusted EBITDA of $173-$176 million.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have jumped 26.3% in the past month compared with the Zacks Wireless-National industry’s rise of 5.1%.
Image Source: Zacks Investment Research
In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 6.08, lower than the industry’s multiple of 7.96.
Image Source: Zacks Investment Research
For ONDS, earnings estimates for the current year have been revised significantly downward in the past 60 days.
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