The share price of Israeli advanced gunsights developer and producer Smart Shooter (TASE: SMSH) rose 30.63% on the Tel Aviv Stock Exchange today, giving a market cap of over NIS 1 billion, after the company announced that it had won the largest contract in its history - a framework agreement with the US Department of Defense worth up to $150 million.
As this is a framework agreement, there is no binding commitment to procure systems totaling that specific amount; consequently, the contract will not be recorded in Smart Shooter’s order backlog. The contract was awarded for JIATF 401 - a special US defense task force set up last year to combat drones, with the company serving as the sole supplier of SMASH drone-interception systems. These company-developed systems integrate with assault rifles, enabling combat personnel to intercept drones. The procurement is intended for a special task force.
The framework agreement covers a 36-month period and includes the supply of systems, training, and related services under the Domestic Shield program, which is designed for force protection, base defense, and countering unmanned aerial systems (UAS) both in and outside the US.
The agreement establishes the terms for future orders, while specific quantities, scope, and delivery schedules will be determined in individual orders. JIATF 401 is a joint task force established in August 2025 under the US Department of War to spearhead the effort against small UAVs. It integrates capabilities from the Army, Air Force, Navy, and Marine Corps, alongside federal law enforcement agencies. This latest contract follows an earlier agreement between Smart Shooter and the task force, announced in March 2026, as well as a series of contracts and follow-on orders with various US military branches over the past year. According to the company, thousands of SMASH systems are already in use by the US military.
Smart Shooter notes that its SMASH systems are fire-control units mounted on small arms, which lock onto targets using AI-based image processing and release the shot only when the weapon is aligned for a hit. The decision to fire remains with the operator.
The company’s flagship product, the Dagger sight, has been used, among other applications, to counter attack drones during the Swords of Iron war. The company's systems are currently deployed by the IDF and by security forces in the US., the UK, Germany, and other NATO nations.
Smart Shooter founder and CEO Michal Mor said, "This win marks a major milestone in the expansion of our operations within the US defense market. SMASH systems are designed to provide the tools to stop small, fast-moving drones before they can strike forces, bases, or strategic assets."
Smart Shooter was founded in 2011 by Mor and Avshalom Ehrlich (CTO), both former employees at Rafael. Headquartered at Kibbutz Yagur, the company has subsidiaries in the US, Germany, and Australia. Smart Shooterlisted on the TASE and began trading on March 5, 2026. Revenues for the first half of 2026 totaled $16.3 million, up 27% from the corresponding period of 2025. The company ended the first half of 2026 with a loss of $4.9 million, compared with a loss of $886,000 in the corresponding period of 2025.
Published by Globes, Israel business news - en.globes.co.il - on September 30, 2026.
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