Nukkleus Inc. (NASDAQ:NUKK) shares jumped 46% after the company unveiled a strategic joint venture with Israeli firm Mandragola Ltd., targeting modernization projects in commercial and defense aviation infrastructure.
The collaboration will create advanced manufacturing hubs in the Baltics and Israel to support both civil and defense aviation requirements. Plans include a NATO-compliant logistics center in Riga and facilities for licensed Maintenance, Repair, and Overhaul (MRO) services, aircraft modernization, resale, and leasing.
This move comes amid escalating geopolitical tensions in Europe, particularly in the Baltic region, as the ongoing Russia-Ukraine conflict reshapes defense priorities. The global aircraft MRO market, valued at $110 billion in 2024, is forecasted to expand to $124 billion by 2034.
The joint venture will be overseen by a five-member Board of Directors and an Advisory Board composed of seasoned aviation experts, including two former Israeli Air Force pilots. The partnership also plans to identify and fund early-stage technology companies in Israel, focusing on innovations applicable to aviation and defense operations.
“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. “By combining aviation expertise, operational efficiency, and regional insight, we are building a platform capable of servicing both commercial and defense applications, while also investing in technologies that will drive the future of aviation.”
The announcement follows Nukkleus’ recently disclosed distribution agreement with BladeRanger (TASE:BLRN) and its pending acquisition of Star 26 Capital Inc., highlighting the company’s continued strategic shift toward the Aerospace and Defense sector.
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