DroneShield’s European Factory Comes Online as ASIC Probe Keeps a Lid on the Stock

DroneShield launches European anti-drone production at Eurosatory, but ASIC investigation into management share transactions pushes stock down 3% despite record order book.

The counter-drone specialist is making tangible strides in Europe, but investors are refusing to look past the regulatory cloud hanging over the company. DroneShield officially launched its first European-manufactured anti-drone system on Monday at the Eurosatory 2026 defence exhibition in Paris — a milestone the market greeted with a near-3% sell-off that pushed the stock to €1.72.

The Amsterdam production hub, which the company activated through a contract manufacturer using predominantly European supply chains, is designed to cut delivery times and bolster supply security for EU and NATO clients. DroneShield opened its European headquarters in the Dutch capital back in March, and the timing aligns with Brussels’ twin rearmament drives — the ReArm Europe plan and the Readiness 2030 programme. The move transforms DroneShield from a pure exporter into a regional supplier, a shift that should help it tap into the continent’s surging defence budgets.

Underpinning the operational story is a record pipeline. The company carried an all-time high order book into 2026 after a strong 2025, and it recently locked in a multi-million-dollar contract from a US military agency. Yet none of that has been enough to lift the equity. The stock now trades roughly 12% below its level at the start of the year and has more than halved from the October 2025 peak of €3.65, leaving it deep underwater from the 50-day moving average of €2.04.

The weight around the share price is the ongoing Australian Securities and Investments Commission investigation. ASIC is scrutinising the company’s communication around questionable management share transactions that took place in November 2025. That uncertainty has created a persistent valuation drag that no amount of positive operating news seems able to shift.

Technical indicators offer limited comfort. The relative strength index has slipped to around 40 — not yet in oversold territory, but closing in. The selling pressure has been steady over the past month, and the stock is now more than 50% below its last annual high.

Despite the near-term gloom, the long-term picture tells a different story. The shares have gained roughly 69% over the past twelve months (some calculations put the figure at 71%), reflecting just how far the company has come since the lows of early 2025. The broader market for counter-drone technology continues to expand rapidly, and DroneShield’s European manufacturing ramp positions it to capture a share of that growth.

Whether the Eurosatory presence can turn sentiment around ultimately depends on how quickly exhibition leads translate into signed contracts. Until ASIC closes its investigation, however, the stock is likely to remain stuck in a pattern where every operational milestone is met with a shrug.