DroneShield Approaches AGM with Unprecedented Order Backlog

DroneShield reports explosive 277% revenue growth to AUD 216.5M for 2025 and a record order book, driven by European demand for counter-drone tech.

As DroneShield prepares for its Annual General Meeting on May 29, the company is reporting a record-breaking order book and explosive revenue growth. Despite this operational momentum, its shares currently trade approximately 41% below their 52-week high of AUD 6.71.

Financial Performance and Forward Momentum

The company’s revenue for 2025 surged by 277%, reaching AUD 216.5 million. Looking ahead, DroneShield has already secured AUD 95.6 million in contracted revenue for 2026, marking its strongest-ever start to a financial year. The broader sales pipeline is substantial, encompassing roughly 300 potential deals across 50 countries with a total value of AUD 2.3 billion.

European demand is a primary growth driver, accounting for AUD 1.2 billion of the total pipeline. This surge is largely attributed to ongoing Russian drone attacks and the increased need for counter-drone defense systems following the war in Ukraine.

Strategic Expansion: Software and Manufacturing

While hardware remains core to its business, DroneShield’s software-as-a-service (SaaS) segment is rapidly gaining importance. Recurring software revenue jumped from under AUD 3 million in 2024 to nearly AUD 12 million in 2025. Contracted SaaS revenue for the current year already exceeds AUD 18 million. The company aims for software to contribute more than 30% of total revenue by 2030.

Concurrently, DroneShield is aggressively expanding its production capacity. Supported by new facilities in Australia and planned manufacturing sites in Europe and the United States, annual production capacity is projected to rise to around AUD 2.4 billion by the end of 2026. The first systems manufactured in Europe are scheduled for mid-2026, a key requirement to meet the procurement guidelines of European defense agencies under the ReArm-Europe plan.

Governance and the Upcoming AGM

Ahead of the May 29 AGM, the nomination window for board candidates closes on April 10. In a separate move to align employee incentives with growth objectives, the company issued 7.8 million employee options on April 2.

A central topic for shareholders at the meeting will likely focus on how the leadership plans to convert its historic order backlog into sustained profitability. This question is particularly relevant given the current valuation gap between the company's dynamic operational performance and its share price.