Thank you for coming, firstly, and also I want to thank Ladenburg for having us here. Let me just ask, are we live on the video? Okay, great. Okay, good. So I guess I've got 25 minutes, and I was a little late, so maybe 23 minutes. I'll try to be succinct on an introduction and overview to Ondas and leave time, sir, for some questions. Okay. So just by the way, Eric Brock, CEO and chairman of Ondas.
So Ondas provides mission-critical, data-intensive technology platforms. We are targeting critical industries: that's military, homeland security, public safety, and the protection and security of critical infrastructure and critical industrial assets. These are very large markets, and I'll dig into them just a bit. We've invested heavily in these technology platforms, over $300 million, and they're special, right? I'll describe them in some detail.
We are, as a company, transitioning from this technology development cycle to platform adoption. So you're seeing us drive significant revenue growth starting actually this year, real-time, and I'll touch on that, of course. We have two business units: we have Ondas Networks and Autonomous Systems, or OAS. OAS is our drone platforms.
I'm going to spend most of my time today, in the interest of time, talking about what we're doing in the drone business. That's taking the lead in terms of adoption, and we have a very dynamic story there. But what I want to highlight is that Ondas Networks is providing a wireless connectivity platform for critical industrial markets, starting with the railroads. So you think about the Class I railroads, these are national operating networks, and we are the upgrade path with our software-defined radio capability, which we've taken to the IEEE, worked with industry around this new standard called 802.16t. We've branded that as dot16. So this is an upgraded network capability so the railroads can drive more intelligence into their systems along the track, on the locomotive, at crossings and waysides, etc., so we can run trains faster and more safely. This is a really, really important capability that the railroads need, because when I'm talking about replacing legacy networks and upgrading, I'm talking about technologies that are 30, 40 years old. So it's a huge opportunity, but like I said, I'm going to focus on the drone business in the interest of time.
What we have going on here in the drones is very dynamic. We have dual-use autonomous drone platforms. We've got our Optimus System—that's the big system on the bottom. On the next slide, I'll go into more details. Then we have the Iron Drone Raider. The Iron Drone Raider is a counter-drone platform; that's the quote-unquote "hard kill" mitigation or interception of the threat, the hostile drone threats. And then we've got what we announced earlier this year—these are modular systems. We might touch on that. I want to highlight that on the Iron Drone platform, we announced earlier this year we're going to make this more kinetic, and I look forward to sharing more details as we go through the year. That's essentially, on the drone side, going to be our third platform, and we could have more capabilities expansions from there.
Since the third quarter of 2024, we have begun to enter and expand our activities in military and homeland security. That's starting with a major military, as we've described it, in the Middle East. Since then, as we've gotten into the field and operational with these systems protecting military bases and borders, we have secured two new customers, so two new programs. These two new customers and programs are specific to the Iron Drone: there's one with a NATO member country that we've announced in the last month or so, and on our earnings call last week, I spoke of a new customer, but we're sort of at the moment not able to go into great details. But the point is, we're showing platform adoption. These markets are very big, and you think about trends in defense technologies—how we're going to more autonomy—I think we're really positioned very well.
Of course, we've got a big focus on operationalizing the business, making that transition from the technology development cycle to that global deployment and service delivery. We have guided to what would be a record revenue, over three and a half times 2024, so that's $25 million. Our backlog coming into the year specific to the OAS business was $10 million, and we've grown that to over $16 million, as we announced on our earnings call last week.
These are the systems. Okay, Optimus System—they're both fully autonomous, right? Optimus System is what you can think of as ISR: intelligence, surveillance, reconnaissance. It's used for perimeter security of critical assets like a military base, or a border, or a maritime port, an oil refinery—any place really you would have security guards and cameras where you're protecting a critical asset. The drone is a force multiplier, but this is drone infrastructure. It's a very special system, and we'll talk about where it's being adopted. But again, public safety is another big use case, as well as critical assets.
The Iron Drone Raider, as I mentioned earlier, is a mitigation of the threat of a hostile drone. So in a layered security system, you're going to start with your detection. We see the drone threat; we identify it. There are capabilities that are part of these layers around electronic warfare, as we call it—that's the jamming and spoofing of radio signals and GPS so you can take the drone down potentially. This is a bit of a cat-and-mouse game. So the last line of defense in many ways is the interception capability, and we have a very special system.
So I'm going to show a video. This is kind of a mashup of both of the systems. And if I press go, it'll play. I don't have audio. Oh, here we go. Oh, no audio. This sounds cool, but maybe I can tell you what you see. That's the Optimus System. This is drone infrastructure. You install this. Both of these systems are operated remotely. It can be a mile away; it can be 100 or even a thousand miles away. These systems are autonomous. They're designed for specific purposes and they do them, right? So it's really just oversight by the operator.
So in the Iron Drone context, we use ground radar to detect the threat. When the threat's detected, this is a super aggressive drone, super fast. It goes out to the general vicinity. We have intelligent navigation on the drone; we don't need GPS or radio. What we do is we find the drone in space, okay, or in the air, and we go hunt it and attack it with a net.
And this is an example of what we're showing here just a moment ago—is what we're doing in Dubai with the Dubai Police, where they're deploying this as drone infrastructure. Dubai has deployed 12 of these units. They're going to go to at least 22 for a ubiquitous citywide coverage so they can be first response to an incident.
All right, a little bit more about the markets. As I said, it is defense and homeland security. We're seeing certainly a demand cycle here for both platforms. Public safety as well: drone as first responder, or DFR. We are seeing police, law enforcement, fire—they're migrating from carrying the drone in the trunk to installing the infrastructure, because they're seeing all the value that the drone can provide is that initial situational awareness when there's an incident. And then, of course, protecting critical assets increasingly, whether it's a data center, a maritime port, an airport. Protecting those is not just the interest of the operators of these facilities; it also comes into the purview of the DoD, right? These critical infrastructure assets.
Huge markets. This is just the TAMs for homeland security and military: $5.3 billion combined. I've told you some of the use cases, some context here. This was our initial customer reference. We captured our first customer for both platforms in the third quarter of last year. The TAMs in this country—it's a relatively small country—easily hitting that $850 million level. When we think about securing a program, what we're doing on these programs of record is you capture the program, you operationalize, you build your sustainment activities, and then you grow that program over time. So we talk also in terms of obtainable markets or SAMs, and that's some metrics there.
We do have a partnership with Palantir. It's starting with some of the operational capabilities that they're bringing in and around supply chain and field services. But there's also quite a bit of opportunity to integrate on other operational capabilities and even go-to-market. So we'll see where we head with that.
I'm going to skip this one in the interest of time. Thinking about the counter-drone market, I referenced earlier there's layers here. The benefits of the interception is low collateral impact. So when you're protecting a critical asset—it might be a military base, it might be an oil refinery, it might be an NFL stadium, or airports—these are where people live. Low collateral impact is important. So we're capturing that bad drone with a net. You can put a parachute on it, lowers the impact on the ground, and of course you're protecting not just the facilities, but you're protecting the people.
And then I will also add that some of these jamming technologies—you've seen this recently, there's been a lot of press around some of the DoD activity. We don't exactly know what, but maybe they're testing some of the electronic warfare systems. What we found is, as you're doing that, you're impacting commercial aviation. So you don't want to jam GPS when you're landing planes; that's not good. You don't want to jam GPS when there's a security event because then the officers can't communicate with each other, or the public radio signal. So again, these defenses need to be layered, and increasingly you're seeing mitigation and the ability for companies like ours to provide this capability is really valuable.
I talked a little bit about this. So this is infrastructure, right? We're installed typically at critical locations, although we can put this in a vehicle as well, so it can be mobile. We've got up to three of these racer drones—we call it the Raider. They sit in the dock, and upon detection, when you detect the threat, this can be deployed automatically. There's nobody operating, no one at sticks controlling these drones; they're all autonomous, and it heads to that threat. We know it's coming from the north at 700 feet of altitude at 70 mph; we interpolate, we go out there, and then mid-flight we've got, as I said, sensor packages, including micro-radar, that allow us to identify the threat, hunt it, and capture it. And this is very, very sophisticated.
This is sort of what I show—the different phases of navigation here. This is a super intelligent drone hitting these new requirements around operating without GPS or radio links. This is a little bit about the competition.
I'll transition now to our Optimus System. So as I said, this is also drone infrastructure. This is used for drone-as-a-first-responder, ISR type of applications: securing the perimeter, but also intelligence. We've got a robotic arm in this docking station that can swap batteries and swap payloads. What that means when you swap batteries is it's available 24/7 for critical services. And when we swap payloads, we're not just taking the video, which is typically going to be the most valuable function, but we can put a LiDAR sensor, a high-resolution optical sensor, a thermal sensor, do mapping, surveying. So you can use this, say, in construction when you want to manage your project: you know where you are versus your plans, you're documenting compliance with environmental standards, you're documenting compliance with the quality of the work that's being done. So it's a very, very unique system.
In terms of the autonomy here, this is installed, nobody touches it, right? Nobody's changing batteries, nobody's on sticks. These are all programmed, or the operator, if it's emergency response, they'll click on a map, say, "I need to go here." The drone can intelligently navigate, avoid buildings, and it's super sophisticated. We are deploying this, as I said—I'll repeat myself, but I want to emphasize—in the city of Dubai as networked infrastructure, all being remotely operated and patrols overseen from a central location. It's incredibly valuable for public safety.
I'll also highlight, I talked about construction management: we have a system here with a large semiconductor company that's just building—these are massive facilities that are being built over many, many years, and we're providing just that. It's perimeter security, it's safety applications, and it's helpful—it's a data service for construction management.
So I talked a bit about this. The outlook: we've shared our outlook, as I said, we're starting to get platform adoption. And I do think these are markets with S-curves. They're huge markets, the demand is there today, the requirements or the capabilities have not been there. We're now operational. So like many technology platforms, we do think there's an S-curve adoption cycle, and I think we're going to demonstrate that as we're moving through the year and into 2026. Again, a little bit about our guidance: we are growing customers, growing programs, and that's going to give us layers of new business to drive that really robust curve over the next several years and then some.
The big picture on the drone side: this is a really attractive sector. The market's huge. The value the drones are bringing to commercial, industrial, military, homeland security markets is massive. So I encourage you to really spend some time and dig in and understand that cycle. But as we're putting the business together, it is about that: it's capturing the customers and then expanding with them and getting that recurring revenue, even sustainment.
And as we're doing that, we're going to have to localize our business in every region of the world, right? So, of course, in the US, we have a business here called American Robotics as part of our OAS business unit. And then in Israel, we have a company called Airobotics, which is a developer of these capabilities. But as we're going into Europe, US, Asia, even in the Middle East, you'll see us have some pretty impressive partners join us along the way to be a force multiplier and accelerate the growth of these systems. So that's that. How much time do we have left? Looks like we got nine minutes. So I did pretty good. Any questions?
