Ondas entered a definitive agreement to acquire Stemme GmbH in an all-cash deal aimed at scaling production of its ULTRA long-endurance ISR platform. The company plans to reach 10 aircraft per month by 2028 by establishing 345,000 square feet of airframe production capacity in the United States.
What's happening
- Ondas acquired 100% of Stemme GmbH, a German composite airframe manufacturer, in an all-cash transaction to accelerate ULTRA production.
- Stemme currently operates at 25% of production capacity across two German facilities totaling 135,571 square feet in Strausberg and Pasewalk.
- Ondas plans to establish 345,000 square feet of U.S. airframe production space to onshore manufacturing and meet U.S. Air Force demand.
- The company targets 10 ULTRA aircraft per month by 2028, up from current production rates.
- ULTRA is a military-hardened uncrewed ISR platform with over 70 hours of flight time and 400 pounds of payload capacity, operationally deployed by the U.S. Air Force.
- Stemme holds EASA, LBA and FAA airworthiness approvals and operates an FAA Part 145 repair station.
Why it matters
- U.S. Department of War strategy emphasizes affordable mass, modularity and rapid production of attritable aircraft to augment crewed assets and expand ISR coverage.
- Persistent ISR demand outpaces available capacity as combatant commands seek wider coverage and greater resilience in contested operating environments.
- Integrating airframe manufacturing, engineering and production under one company reduces supply chain reliance and shortens timelines for design iteration and customer responsiveness.
- Onshoring production eliminates an external supplier dependency and improves coordination between engineering and manufacturing as production scales.
Going deeper
- ULTRA uses a commercial aviation foundation based on Stemme's type-certified S12 composite airframe, positioning it as a lower-cost ISR option than traditional aircraft.
- The platform supports modular payloads including electro-optical and infrared sensing, radio-frequency collection and communications relay.
- Dual-use opportunities exist in border and maritime surveillance, disaster response, environmental monitoring and commercial infrastructure inspection.
- The acquisition pools engineering and production expertise under one organization, enabling faster iteration for future U.S. Air Force requirements.
Financial impact
- Ondas used an all-cash payment to acquire Stemme; purchase price and acquisition financing structure not disclosed.
- Revenue recognition will occur as ULTRA aircraft are delivered and accepted; timing depends on production ramp and customer order flow between 2026 and 2028.
- The 345,000 sq ft U.S. production facility represents a significant capex investment for Ondas; spending timeline and amount not disclosed.
- Acquisition closes first quarter 2027, subject to regulatory approvals; integration costs and impact on gross margin not disclosed.
The intrigue
- Stemme was operating at only 25% of capacity, raising questions about whether the German facilities will remain active or consolidate into the new U.S. footprint.
- The 10 aircraft per month target by 2028 implies demand certainty and customer commitments; the customer base beyond the U.S. Air Force is not specified.
- All-cash acquisition method and purchase price remain undisclosed, leaving unclear whether Ondas funded this organically or through debt or equity raises.
The fine print
- Transaction expected to close in first quarter 2027, subject to customary closing conditions and regulatory approvals.
- Acquisition price and terms remain undisclosed; no information on earnouts, seller financing or holdback provisions.
- Stemme's current production footprint spans two German locations; consolidation, expansion or closure plans for those facilities were not detailed.
Source: ir.ondas.com · Nov 5, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.
