Nukkleus Inc. Shares Surge as Firm Expands Defense Footprint with New Deal

Nukkleus Inc. (NASDAQ: NUKK) shares jumped 34.69% in pre-market trading to $4.97 following the announcement of a strategic European joint venture focused on NATO-compliant defense infrastructure. The aerospace and defense company revealed plans to establish advanced manufacturing zones in the Baltic States and Israel, capitalizing on heightened geopolitical tensions and the growing global aircraft maintenance market.

This latest move builds on Nukkleus’ recent pivot into the defense sector, including an exclusive U.S. distribution agreement with Israeli drone payload specialist BladeRanger and the pending acquisition of Star 26 Capital Inc.

Nukkleus Announces JV in Strategic Defense Expansion Move

Nukkleus announced a joint venture with Israeli firm Mandragola Ltd. to establish advanced manufacturing zones in both the Baltic States and Israel, designed to support civil and defense aviation needs. The partnership includes plans for a NATO-compliant logistics hub in Riga in cooperation with regional partners, as well as facilities dedicated to licensed maintenance, repair, and overhaul (MRO) services, aircraft modernization, resale, and leasing operations.

The initiative comes at a critical time as the war between Russia and Ukraine continues to reshape European defense priorities, particularly in the Baltic States. The global aircraft MRO market, valued at $110 billion in 2024, is projected to expand to $124 billion by 2034, presenting significant growth opportunities for the joint venture.

The partnership will also focus on identifying and financing early-stage Israeli technology companies developing innovative aviation and defense technologies. Led by a five-member Board of Directors and an Advisory Board featuring experienced aviation professionals, including two former Israeli Air Force pilots, the venture represents Nukkleus’ cornerstone European aviation and defense operations platform.

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Nukkleus Shares Surge in Premarket Trading

Nukkleus shares closed at $3.69 on Thursday, down 14.78%, before surging to $4.97 in pre-market trading Friday morning, representing a 34.69% gain. The company has a market capitalization of $26.1 million and has shown extreme volatility, with a 52-week range spanning from $1.30 to $78.32. Despite year-to-date losses of nearly 90%, the stock has gained 55.83% over the past 12 months.

The European joint venture follows Nukkleus’ recent establishment of a defense subsidiary, Nukkleus Defense Technologies Inc., and an exclusive three-year U.S. distribution agreement with BladeRanger Ltd. (TASE: BLRN). This distribution deal grants Nukkleus sole rights to commercialize BladeRanger’s advanced drone payload technologies in the U.S. market, targeting the rapidly expanding drone payload sector valued at $7.2 billion in 2020 and expected to reach $33.3 billion by 2030.

CEO Menny Shalom emphasized that these strategic moves align with the company’s mission to build “a modern and hi-tech ecosystem of A&D defense companies, ensuring both long-term gains for shareholders as well as generational security for national defense networks.” The company focuses on acquiring Tier 2 and Tier 3 suppliers that form the industrial backbone of national security infrastructure across the U.S., Israel, and Europe.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.