DroneShield Puts Counter-Drone Tech on Wheels as Stock Sags Despite A$2.2 Billion Pipeline

DroneShield teams with Overland AI to mount counter-drone tech on unmanned ground vehicles, targeting A$2.2B pipeline despite shares trading 40% below peak.

The Australian defence-tech firm is betting that mobility will unlock the next wave of orders, even as its shares trade nearly 40% below their peak.

DroneShield has struck a partnership with US robotics specialist Overland AI to mount its DroneSentry-X Mk2 counter-drone system onto the ULTRA unmanned ground vehicle. The combination creates a mobile platform capable of detecting, identifying and tracking drone threats in real time while navigating rough terrain — a capability the company argues is increasingly vital as unmanned aerial systems become a hazard not just for fixed positions but for moving ground assets.

The DroneSentry-X Mk2 runs on DroneShield’s RfAI engine, which analyses both known and unknown drone signals in real time and receives quarterly software updates to stay ahead of emerging tactics. Mounted on the ULTRA vehicle — which packs stereo cameras, LiDAR, thermal imaging and GPS-independent navigation — the system can carry payloads of up to 454 kilograms and handle resupply, reconnaissance, casualty evacuation or munitions missions. The solution has already been tested in real-world conditions and is available immediately to defence and government clients.

The partnership arrives at a moment of strong operational momentum — but a weak stock price. DroneShield’s global sales pipeline now encompasses 312 active projects worth a combined A$2.2 billion, with Europe and the UK accounting for A$1.1 billion, the largest single regional segment. Secured revenue for the 2026 financial year stands at A$154.8 million, up from A$94.4 million at the same point last year. The company has earmarked A$70 million for research and development, funded entirely from its own cash reserves.

Yet the share price tells a different story. DroneShield’s stock trades at €2.20, roughly 40% below its 52-week high of €3.65 set in October 2025, though it remains up more than 200% over the past twelve months. The 30-day annualised volatility sits above 66%, reflecting nervous trading. The relative strength index is around 64 — not yet overbought territory, but the lack of fresh company announcements in the past 48 hours has left the stock drifting.

The broader backdrop for defence spending could hardly be more supportive. Global military expenditure hit a record US$2.9 trillion in 2025, according to the Stockholm International Peace Research Institute, with Europe up 14% to US$864 billion and the US crossing the US$1 trillion mark for the first time. The market for counter-unmanned aerial systems is forecast to grow at nearly 32% annually through 2030. Australia’s own government has pledged up to A$7 billion for drone defence under its 2026 national defence strategy, while the country’s civil aviation authority is consulting on new drone rules until May 20 and the interior ministry is reviewing security risks to critical infrastructure by May 25.

But sector tailwinds have not translated uniformly into share-price gains. Elsight, another ASX-listed defence-tech company, hit an all-time high this week after its Halo platform was added to the US DCMA Blue List, a quality certification for defence technology, and has gained roughly 133% year-to-date. Rheinmetall, by contrast, has struggled for momentum despite fresh drone contracts. Investors are becoming more selective.

DroneShield is also navigating an internal transition. Founding chairman Peter James, who has held the role since before the company’s 2016 IPO, will not stand for re-election at the annual general meeting in Sydney on May 29, 2026. Hamish McLennan will join the board as an independent non-executive director and chairman-elect from May 1, 2026, and will formally take the chair after the AGM.

The question hanging over the stock is whether the swelling pipeline of 312 active projects and the new mobile counter-drone capability will convert into concrete orders. With secured revenue for 2026 already 64% higher than at the same stage last year, the second half of the year will be the real test.