Ondas Holdings shares jumped 9% in premarket trading on Wednesday after the company announced it had secured a strategic government contract to develop and deploy an autonomous border protection system using thousands of drones.

Ondas Holdings’ peers also jumped in premarket trading. Unusual Machines rose 7%; Draganfly rose 4%; Palladyne AI rose 3%; ParaZero Technologies, Archer Aviation, and AIRO Group rose 2%; Kratos Defense & Security Solutions, Red Cat, SES AI, and AeroVironment rose 1%.

The multi-year, multi-phase program positions Ondas Autonomous Systems (OAS) as the prime contractor following a competitive tender process against major defense companies. According to the company, OAS achieved the highest performance across key criteria during the evaluation.

The contract involves developing multipurpose drones, ground launching systems, and advanced software with AI capabilities. The initial purchase order is anticipated in January 2026, with the program expected to span two years.

"This award is a strong validation of Ondas’ leadership in autonomous security technologies and our increasing role as a defense prime contractor," said Eric Brock, Chairman & CEO of Ondas.

The system will be designed to provide 24/7 intelligence, surveillance, and reconnaissance capabilities, along with autonomous swarm deployment and threat mitigation across complex border terrain. As prime contractor, OAS will lead system design and integration, combining its autonomous aerial platforms with technologies from key partners.

Ondas Holdings operates through two business units: Ondas Autonomous Systems, which provides drone intelligence, and Ondas Networks, which delivers private wireless solutions. The border protection system will incorporate elements including real-time sensor fusion, AI-driven targeting, and automated swarm operations.