Defense Drone Race Heats Up: Can ONDS' $35M PDW Bet Challenge RedCat and Draganfly?

Ondas Holdings (ONDS) just dumped $35 million into Performance Drone Works—a bold move that signals where the real money is flowing in autonomous defense tech. The cash will beef up PDW’s combat drone production (C100 and AM-FPV platforms) while beefing up Ondas’ portfolio in an increasingly crowded market.

Here’s the catch: Ondas isn’t alone in this arms race.

The Competition Just Got Fiercer

Red Cat Holdings (RCAT) is posting insane numbers—$9.6M Q3 revenue, up 646% YoY—riding the U.S. Army’s SRR Tranche 2 program ($35M contract awarded). They’ve already updated 2025 guidance to $34.5-37.5M and sitting on solid liquidity to scale production.

Draganfly (DPRO) locked in military orders for Commander 3XL drones through major defense contractors, cementing its role in global defense operations.

Meanwhile, ONDS itself is flexing: $36M 2025 revenue guidance (up from $25M), plus a recent $8.2M European airport security order. The $23.3M backlog suggests real demand, not hype.

The Valuation Question

ONDS’ stock has ripped 587% in six months, but here’s where it gets spicy: trading at a 31.3x forward P/S ratio vs. the sector’s 2x multiple. That’s either genius positioning in a booming sector, or a bubble waiting to pop. Consensus estimates are getting revised higher, but execution risk remains—especially with rivals scaling faster.

What Actually Matters

The $35M PDW investment isn’t just capital—it’s a bet on U.S. domestic supply chains and NDAA compliance. In defense tech, geopolitics > spreadsheets. Whoever controls production scale and government relationships wins. RCAT’s momentum is undeniable, but ONDS’ diversification (autonomous systems + wireless networks) could be the edge.

The real question: Can Ondas convert its portfolio expansion into predictable, profitable growth before the market reprices this 587% rally?