JFB Construction Holdings $JFB ( ▲ 22.94% ) surged in premarket trading after announcing plans to merge with Israeli drone company Xtend in a deal valued at roughly $1.5 billion. Trading in the stock was temporarily halted for news before resuming, reflecting the market’s surprise at the dramatic strategic shift from construction into defense technology.
The transaction is backed by investments from Eric Trump, adding political visibility to the deal. Drone technology firm Unusual Machines $UMAC, which is linked to Donald Trump Jr., is also participating as a strategic investor.
From building sites to battlefields
Xtend develops advanced drone systems, some of which have been marketed for military use with an emphasis on low operational costs. The company recently secured a multimillion-dollar contract from the Pentagon, signaling growing demand for autonomous and remote combat technologies.
By merging with Xtend, JFB is effectively pivoting into the rapidly expanding defense drone market, a sector benefiting from rising global military spending and lessons learned from modern conflicts.
A high-stakes transformation
For investors, the deal represents both opportunity and risk. Defense technology can command higher growth and margins than traditional construction, but it also comes with regulatory hurdles, geopolitical sensitivities, and execution challenges.
JFB’s stock has been volatile, and the merger could redefine the company’s identity entirely. If successful, the combined entity would shift from a regional construction player to a participant in one of the fastest-growing segments of the defense industry.
Whether the market views this as a bold strategic leap or a risky reinvention will likely depend on how quickly the company can demonstrate tangible results from its new drone-focused direction.