Nukkleus Shares Soar on Strategic European Defense Venture
Partnership with Israeli firm targets Baltic region's growing aerospace and defense needs amid regional tensions.
Nukkleus Inc. (NASDAQ: NUKK) shares surged over 35% on Friday after the company announced a strategic joint venture with Israeli investment firm Mandragola Ltd. to expand into the European aerospace and defense sectors. The new partnership will focus on infrastructure modernization in the Baltic States and Israel, capitalizing on heightened geopolitical tensions following the war in Ukraine.
The venture plans to establish advanced manufacturing zones and a NATO-compliant logistics hub in Riga, Latvia, directly addressing the region's heightened defense priorities. It will also offer aircraft Maintenance, Repair, and Overhaul (MRO) services, a market projected to grow to $124 billion by 2034. By pairing Nukkleus's focus on acquiring strategic suppliers with Mandragola's expertise in advanced technologies, the partnership aims to create a significant foothold in a rapidly expanding market.
"This joint venture aligns with Nukkleus’ mission to grow high-impact businesses in strategic sectors, specifically the A&D sector," said Menny Shalom, CEO of Nukkleus. He noted the goal is to build "a platform capable of servicing both commercial and defense applications, while also investing in technologies that will drive the future of aviation."
The move is a cornerstone of Nukkleus's ongoing pivot into the aerospace and defense industry. The partnership will also identify and finance promising early-stage technology companies in Israel, aiming to integrate their innovations into the venture's operations.
"Working alongside Nukkleus, we are creating significant opportunities in both the established aviation and emerging technology sectors," said A. Segal, CEO of Mandragola. "Our extensive experience in the civil aviation sector and deep connections in the Israeli A&D tech ecosystem uniquely position this joint venture to deliver meaningful value."
Investor response was overwhelmingly positive, with the stock's sharp upward movement reflecting confidence in the venture's potential to secure a key role in bolstering European defense and aviation infrastructure at a critical time.