DroneShield Appoints Retired Rear Admiral as Revenue Triples and €730 Million Decision Nears, but ASIC Probe Looms

DroneShield's revenue nearly triples to $216.5M, backlog hits $2.2B, but an ongoing ASIC investigation into insider sales drives shares down 56% from peak.

The counter-drone specialist is caught in an odd disconnect: its order book is bulging, revenue has nearly trebled, and a new heavyweight director is joining the board — yet the share price continues to drift lower. DroneShield’s stock closed at A$1.62 on the ASX on Monday, down roughly 18% since the start of the year and almost 56% below the October 2025 peak of A$3.65. The relative strength index sits at 32.3, deep in oversold territory, while the share price languishes some 20% below its 50-day moving average and well under the 200-day benchmark.

The culprit behind the persistent selling pressure is the Australian Securities and Investments Commission (ASIC), which has been probing company announcements and trading activity since November 2025. The investigation centres on a narrow window between 6 and 12 November last year, during which former CEO Oleg Vornik, board chairman Peter James and director Jethro Marks sold their entire holdings for a combined A$66.8 million — coinciding with the withdrawal of a flawed contract announcement. DroneShield says it is cooperating fully, but with no resolution in sight, every upbeat operational update is quickly overshadowed.

Operationally, the numbers tell a far more optimistic story. In the fiscal year 2025, revenue hit A$216.5 million, nearly three times the prior year’s figure. The momentum continued into the first quarter of fiscal 2026, with revenue of A$74.1 million — a 121% year-on-year jump — and customer deposits surging 360% to A$77.4 million. Operating cash flow turned positive for the fourth consecutive quarter. The company sits on A$223 million in cash and carries zero debt.

The pipeline is equally robust. DroneShield’s backlog comprises 312 projects worth a combined A$2.2 billion, including 15 individual orders above A$30 million each and one single deal valued at A$730 million that is expected to be decided in the second half of calendar 2026. Management is targeting an annual production capacity of A$2.4 billion by the end of next year.

Much of that growth is being driven by Europe, which accounted for 45% of group revenue last year. At the Eurosatory defence exhibition in Paris, the company announced that the first counter-drone system manufactured in Europe had rolled off the production line. The units are built by a contract manufacturer that sources predominantly from European supply chains, a deliberate move to qualify for local funding programmes. Also at Eurosatory, DroneShield revealed a partnership with Dutch mobility specialist Defenture to integrate electronic warfare capabilities into tactical military vehicles.

To bolster its push for government contracts, DroneShield has added a military heavyweight to its board. Rear Admiral (retired) Lee Goddard will join the directorate from 1 July 2026, bringing more than three decades of experience with the Royal Australian Navy and senior strategic roles in government. Goddard already serves on the boards of Austal and Southern Launch, and his extensive network is expected to help convert the company’s €1.2 billion sales pipeline into signed orders that can turn pilot projects into multiyear contracts.

The market will get its next chance to reassess the story when DroneShield releases its half-year results on 26 August. Investors will be looking not only at continued revenue growth but, critically, for any update on the ASIC probe. Until the regulator signals an end to its inquiry, any rally is likely to remain capped — no matter how strong the operational engine underneath.