Israeli drone maker XTEND lands up to $15 million NATO contract as allies seek alternatives to Chinese drones
The Israeli autonomous-systems company secured $4.5 million for the first year of the contract as Western militaries put greater emphasis on trusted technology and secure supply chains.
Israeli autonomous-drone company XTEND has secured a multi-year contract worth up to approximately $15 million with the Ministry of Defense of a European NATO member, as allied governments increasingly seek alternatives to Chinese-made commercial drone platforms.
The agreement includes approximately $4.5 million secured for the first year, according to JFB Construction Holdings, the Nasdaq-listed company that is in the process of merging with XTEND.
The identity of the European NATO member was not disclosed.
The contract is relatively small by the standards of major defense procurement programs, but its timing points to a broader shift in how Western militaries are approaching commercial drones and autonomous systems. Governments are increasingly weighing not only the capabilities and cost of such systems, but also the security of their software and the resilience and origin of the supply chains behind them.
For XTEND, that shift could open a much larger market. The company says similar regulatory and procurement changes in the United States are increasing demand for alternatives to Chinese-manufactured drone systems across defense, homeland security and critical infrastructure.
XTEND develops autonomous systems and software-defined robotics built around its XTEND Operating System, or XOS. The company is seeking to position XOS as more than software for individual drones: It wants the platform to serve as an operating system for autonomous operations across a broader range of robotic systems.
The company operates a global XFAB manufacturing network and says it provides a secure and scalable production infrastructure designed to meet the changing requirements of allied governments. Its broader portfolio includes systems compliant with U.S. National Defense Authorization Act requirements and fielded with U.S. and allied forces.
The European contract comes at an important moment for XTEND. The company is preparing to become a publicly traded business in the United States through its merger with JFB Construction Holdings. The transaction is expected to close following the September 8, 2026, market close, after which XTEND is expected to begin trading on the New York Stock Exchange.
“This contract represents another important validation of XTEND’s technology and our ability to support the evolving requirements of allied defense organizations at scale,” CEO and co-founder Aviv Shapira said.
“Across NATO and allied markets, governments are reassessing the platforms they depend on and placing greater emphasis on trusted technology, secure supply chains and operationally proven systems,” he said.
XTEND was founded in 2018 by Aviv Shapira, Matteo Shapira, Rubi Liani and Adir Tubi. The company develops autonomous systems for defense, public safety and private security applications.
