Ondas Inc. shares are down on Wednesday. The company announced a joint venture with Heidelberger Druckmaschinen AG to create ONBERG Autonomous Systems. The deal aims at advancing European drone defense systems.

The joint venture formalizes a Memorandum of Understanding signed in December 2025. It aims to establish a European one-stop shop for autonomous drone defense systems.

The deal combines Ondas’ technologies with Heidelberg’s industrial capabilities.

This partnership is designed to enhance local sales, development, and production in Germany.

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In the first phase, ONBERG will focus on delivering autonomous drone defense systems to Germany and Ukraine, leveraging Ondas’ battle-proven technologies.

The initiative is expected to expand into EU markets. This emphasizes the urgent need for enhanced security against evolving drone threats.

Eric Brock, chairman and CEO of Ondas stated, “Europe is facing an urgent need to protect critical infrastructure, military installations, and civil assets from evolving drone threats. Through ONBERG, we are combining American-Israeli high-tech defense innovation with German industrial scale and precision manufacturing.”

Oshri Lugassy, Co-CEO of Ondas Autonomous Systems, added, “We will begin with the marketing and deployment of our proven Iron Drone Raider and ISR platforms in Germany and Ukraine and progressively expand into EU markets with localized assembly and manufacturing. By building production, R&D and integration capabilities in Germany, we are creating a sustainable, scalable platform that supports Europe’s long-term strategic autonomy in defense technology.”

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On Tuesday, Ondas acquired heavy engineering equipment company INDO Earth Moving Ltd. for $5.66 million in cash and 5.49 million shares. With a military vehicle tender worth $140 million under its belt, Indo is expected to bring significant revenue to Ondas starting in the second quarter of 2026.

Last week, the company disclosed a partnership with Palantir Technologies and World View Enterprises to enhance multi-domain intelligence capabilities for defense and security missions.

The countdown is on: Ondas is set to report earnings on March 25.

EPS Estimate: Loss of 4 cents (Up from loss of 15 cents)

Revenue Estimate: $27.86 million (Up from $4.13 million)

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Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $13.06. Recent analyst moves include:

Needham: Buy (Maintains target to $17 on March 10)

Stifel: Buy (Raises target to $18 on Jan. 21)

Lake Street: Buy (Raises target to $19 on Jan. 20)

State Street SPDR S&P Kensho New Economies Composite ETF (NYSE:KOMP): 0.81% Weight

ROBO Global Robotics and Automation Index ETF (NYSE:ROBO): 1.98% Weight

Invesco Dorsey Wright Technology Momentum ETF (NASDAQ:PTF): 3.95% Weight

Significance: Because Ondas carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

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This article Ondas Partners With Heidelberg For European Drone Defense originally appeared on Benzinga.com