Ondas Inc. (NASDAQ:ONDS) plans to expand production of its ULTRA long-endurance intelligence, surveillance and reconnaissance aircraft, including through new U.S. manufacturing capacity. The company is targeting production of 10 ULTRA aircraft per month by 2028 and has entered into a definitive agreement to acquire 100% of ULTRA airframe manufacturer Stemme GmbH in an all-cash transaction.
#Proposed Stemme acquisition
The transaction would bring Stemme, a German aircraft manufacturer, into the Ondas Sentinel group. Ondas said the proposed acquisition is intended to increase control over ULTRA airframe capacity, costs and production schedules while reducing reliance on an external supplier.
The transaction is expected to close in the first quarter of 2027. It remains subject to customary closing conditions and regulatory approvals, so the acquisition has not yet been completed.
#Planned U.S. manufacturing capacity
Ondas plans to establish 345,000 square feet of U.S. airframe production space as part of its expansion. The company said moving more production to the United States would shorten supply lines and improve its response to U.S. customer requirements.
Stemme currently operates facilities in Strausberg and Pasewalk, Germany, at approximately 25% of production capacity, according to Ondas. The sites cover approximately 135,571 square feet of design, production and maintenance space. Ondas plans to increase their utilisation while developing additional U.S. capacity.
Stemme holds airworthiness approvals from EASA, LBA and the FAA, and operates an FAA Part 145 repair station. Its capabilities include airframe manufacturing, engineering and maintenance.
#ULTRA aircraft capabilities and applications
Ondas said ULTRA is operationally deployed by the U.S. Air Force and can remain airborne for more than 70 hours with over 400 pounds of payload capacity. The uncrewed aircraft is based on Stemme’s type-certified S12 composite airframe.
The platform’s modular payload architecture supports electro-optical and infrared sensing, radio-frequency collection and communications relay. Ondas also identified potential applications in border and maritime surveillance, disaster response, environmental monitoring and commercial infrastructure inspection.
#Demand for persistent ISR
Ondas said demand for persistent ISR is exceeding available capacity as combatant commands seek wider-area coverage, longer time on station and resilience in contested and distributed operating environments.
The company pointed to a U.S. Department of War approach combining crewed assets with autonomous and uncrewed platforms, networked sensors and lower-cost, attritable aircraft. Ondas said these requirements support its plan to expand ULTRA production and serve U.S., allied and dual-use missions.
#Management comments
Eric Brock, Chairman and CEO of Ondas, said the company’s objective is to align aircraft production with customer requirements and work toward 10 ULTRA aircraft per month by 2028.
Ryan Hartman, President and CEO of Ondas Sentinel, said integrating Stemme would place the ULTRA airframe, engineering and production operations within the same organisation. He also said the arrangement would support faster responses to customer requirements and future design changes for U.S. Air Force needs.
#Key Takeaways
- Ondas plans to target production of 10 ULTRA aircraft per month by 2028.
- The company has entered into a definitive agreement to acquire 100% of Stemme GmbH in an all-cash transaction.
- The proposed expansion includes 345,000 square feet of planned U.S. airframe production space.
- Stemme’s existing facilities in Strausberg and Pasewalk operate at approximately 25% of production capacity across approximately 135,571 square feet.
- The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions and regulatory approvals.
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