DroneShield Caps a Landmark Year with Major Defense Contracts

DroneShield AU000000DRO2

The Australian counter-drone technology firm DroneShield has announced a significant $6.2 million contract from a military customer in the Asia-Pacific region, disclosed on December 24, 2025. This latest deal concludes an extraordinary period for the company, marked by surging revenues and the navigation of a corporate governance challenge.

DroneShield operates within a global market estimated to be worth over $10 billion. This sector is poised for substantial growth, driven by commitments from NATO members to increase defense spending to 5% of GDP by 2035, up from 2%. Furthermore, the U.S. Department of Defense has classified counter-drone systems as one of 17 critical technology areas, allocating $1.3 billion for related initiatives.

The company’s own sales pipeline expanded dramatically to A$2.33 billion as of July 2025, representing a 112% increase from the first half of 2024. This pipeline includes 284 projects slated for 2025/2026, with 13 individual deals each valued at over A$30 million.

Back-to-Back Major Contract Wins

Just one week prior to the Asia-Pacific announcement, DroneShield secured a massive European order worth $49.6 million—the second-largest in its history. The European military client ordered portable drone defense systems, including accessories and software updates. A significant portion of the required hardware is already in DroneShield’s inventory, with full delivery and payment anticipated in the first quarter of 2026.

This particular European customer has now placed 15 separate orders over the past three years, with a cumulative value exceeding $86.5 million. Combined, the two December contracts alone contribute over $55 million to the company’s order book.

The recent Asia-Pacific contract, secured through an established, publicly-listed multi-billion dollar distribution partner, involves third-party hardware integrated with DroneShield’s proprietary DroneSentry-C2 command-and-control software. Delivery and full payment are scheduled for 2026. This marks the 15th individual order from this same distribution partner within a two-year span, bringing the total cumulative volume of their business relationship to over $48 million.

Financial Performance and Analyst Outlook

DroneShield’s financial results have reflected this commercial momentum. The company reported a 480% year-on-year revenue increase to A$38.8 million for the second quarter of 2025. For the full 2025 financial year, the firm has already secured committed orders totaling A$176.3 million.

In light of these developments, brokerage firm Bell Potter has reaffirmed its buy recommendation for DroneShield shares, maintaining a price target of A$4.40. The analyst views 2026 as a potential inflection point for the global counter-drone industry.

Governance Overhaul Following Share Sales

The company’s recent commercial successes coincide with internal reforms to its corporate governance framework. These changes were implemented on December 22, 2025, in response to significant share sales the previous month.

In November 2025, sales of shares by CEO Oleg Vornik and Chairman Peter James, worth approximately A$70 million, triggered a 48% decline in the share price. As a corrective measure, DroneShield introduced new rules requiring the CEO to hold shares valued at 200% of his annual salary. All directors are now mandated to hold equity commensurate with their yearly compensation. Additionally, the company plans to appoint another independent director to its board. The announcement of these governance reforms resulted in a 9% uplift in the share price.