Israel to Supply US Army with Drone Interception Systems Valued at $150 Million

An Israeli company specializing in smart sights for small arms has secured a contract with the U.S. Department of Defense worth up to $150 million. Smart Shooter announced on Wednesday, September 30, that it will be the sole supplier of its SMASH drone interception systems to the U.S. military's JIATF 401 task force. This unit, established in August 2025, is the primary entity responsible for combating small drones, integrating capabilities from various U.S. military branches and federal law enforcement agencies. JIATF 401's mission includes protecting U.S. bases and countering drone threats both domestically and abroad, as part of the Domestic Shield program.

Smart Shooter's founder and CEO, Michal Mor, stated that the agreement signifies her company's system being designated as the preferred choice, granting them sole supplier status, and highlights the substantial budget allocated. She described this as a significant milestone in expanding their presence in the American defense market. The SMASH systems are designed to neutralize small, fast drones before they can impact troops, bases, or strategic assets. The contract, spanning 36 months, covers system delivery, training, and maintenance, representing Smart Shooter's largest order from the U.S. to date. While the contract sets a maximum value, it does not obligate the U.S. government to purchase the full amount.

Smart Shooter, a relatively young company, has experienced rapid growth driven by the increased threat of drones, particularly following the conflict in Ukraine. Founded by Michal Mor, who previously worked at RAFAEL developing ergonomics for precision missile systems, the company's origins lie in Mor's realization that reservist marksmanship could be improved with better aiming tools. She leveraged her expertise in precision systems to develop a rifle-mounted sight that uses algorithms to process target imagery, perform ballistic calculations, and assist the shooter in engaging targets. The company's expansion was further accelerated by the war and the growing drone threat.

The SMASH fire control system family is utilized by security forces in the U.S., Israel, the UK, Germany, and other NATO allies. In 2026, Smart Shooter went public on the Tel Aviv Stock Exchange with a valuation of 900 million shekels. The company reported a 27% increase in revenue to $16.3 million for the first half of the year, with its order backlog jumping to $51.6 million. The second quarter concluded with a profit of $1.7 million.