Nukkleus Subsidiary Rimon Wins $4.1M Contract to Fortify Iron Dome

NEW YORK, NY – February 03, 2026 – In a move that underscores a significant evolution in the global defense industry, Nukkleus Inc. (NASDAQ: NUKK) announced today that its wholly-owned Israeli subsidiary, B. Rimon Agencies Inc., has secured multi-year contracts valued at approximately $4.1 million. The agreements task Rimon with manufacturing critical power and subsystem components for Israel’s renowned Iron Dome anti-missile defense system, as well as for other mission-critical national security platforms.

This deal with several of Israel's leading defense original equipment manufacturers (OEMs), including key players like Rafael Advanced Defense Systems, provides Rimon with a predictable, long-term revenue stream. More importantly, it shines a spotlight on the increasingly crucial role of specialized, sub-tier suppliers who form the industrial backbone of modern defense architecture.

The Unseen Backbone of National Defense

For decades, the defense sector's narrative has been dominated by prime contractors—the large corporations that design and assemble major weapons systems. However, the increasing complexity and operational demands of platforms like the Iron Dome are forcing a structural shift. The success of these systems now relies heavily on a network of Tier-2 and Tier-3 suppliers who bring specialized expertise, execution excellence, and resilient capabilities.

Rimon, founded in 1988, operates squarely within this vital execution layer. The firm is not merely a parts manufacturer; it designs and delivers customized, integrated platforms that combine power generation, communications, sensor infrastructure, and mobility solutions into cohesive, field-ready systems. These are not off-the-shelf components but bespoke solutions that ensure the operational reliability and effectiveness of the larger defense system. The newly awarded contracts will see Rimon provide these advanced energy and precision-engineered solutions, which are pivotal for the Iron Dome's real-time threat detection and interception capabilities.

“Systems like the Iron Dome rely not only on prime contractors, but on a network of highly specialized suppliers, capable of delivering critical subsystems reliably and at scale,” said Menny Shalom, Chief Executive Officer of Nukkleus Inc., in the company's official announcement. “Rimon’s role in these programs reflects the long-cycle, mission-critical work that defines durable value in the defense industrial base.”

A Strategic Bet on the Supply Chain

The contracts serve as a powerful validation of the unique M&A strategy employed by Nukkleus. The company has positioned itself as a strategic acquirer and developer of high-potential businesses specifically within the Tier-2 and Tier-3 defense and aerospace sectors. Its model involves a decentralized execution approach, allowing subsidiaries like Rimon to maintain their domain expertise and deep customer relationships, while Nukkleus provides centralized capital, strategic direction, and operational alignment.

Nukkleus's acquisition of Rimon's parent fund, Star 26 Capital Inc., in December 2024 for $26 million was a deliberate move to anchor itself within Israel's robust defense ecosystem. The deal included a direct injection of over $5 million in investment capital into Rimon to fuel its expansion—a move that is now bearing fruit. This $4.1 million contract win represents a significant addition to the $20-22 million in revenue Nukkleus projected for its acquired portfolio in 2026.

This strategy is not limited to Rimon. Nukkleus has been actively expanding, recently acquiring Nimbus Drones Technologies and Tiltan Software Engineering Ltd., both Israeli firms specializing in UAVs, counter-UAS, and defense AI. To power this aggressive M&A pipeline, Nukkleus secured a $250 million equity line in September 2025, providing substantial long-term capital to continue acquiring and scaling the industrial backbone of national security in the US, Israel, and Europe.

Fueling Defense Amidst Regional Tensions

The timing and nature of the Rimon contracts are deeply intertwined with the current geopolitical climate. Israel's defense spending has seen an unprecedented surge, increasing by 65% to $46.5 billion in 2024 in response to multi-front conflicts and heightened regional security concerns. The nation's defense budget for 2025 has been set at a record NIS 110 billion (approximately $29 billion), reflecting a sustained high operational tempo and the urgent need to maintain and expand its national security infrastructure.

While this elevated spending has raised economic concerns, with the Bank of Israel's governor warning about the long-term fiscal impact, the immediate necessity for a robust defense posture is undeniable. This environment creates a strong, sustained demand for the advanced components and systems produced by firms like Rimon. Furthermore, a recent upgrade of Israel's credit outlook from negative to stable by Moody's, citing easing geopolitical risks and projecting a post-war economic rebound, suggests a level of financial resilience that can support these long-term defense commitments.

The contracts secured by Rimon are therefore not just a momentary win but are tied to a long-cycle national security imperative. As Israel continues to invest heavily in proven systems like the Iron Dome, the demand for reliable, high-performance subsystems from trusted domestic partners is expected to remain strong, ensuring a stable foundation for Rimon's growth and validating Nukkleus's strategic focus on this critical market segment.