DroneShield’s Record Cash Pile and US Factory Sprint Face ASIC’s Shadow

Despite a 121% revenue surge and accelerated US production, DroneShield's stock languishes near €1.94 amid an ASIC probe, leaving analysts divided.

DroneShield is firing on all cylinders operationally, but a regulatory investigation in Australia is keeping a lid on its share price. The counter-drone specialist posted a blockbuster first quarter, accelerated a major US production expansion, and boasts a debt-free balance sheet with A$222.8 million in cash. Yet the stock languishes near 1.94 euros, roughly 46% below its October peak, as the Australian Securities and Investments Commission (ASIC) probes disclosures and insider stock sales from last November.

On the SOF Week 2026 trade floor in Tampa this week, DroneShield is showcasing its DroneSentry-X and DroneGun platforms to military buyers. The US push is critical: the company is doubling its manufacturing capacity there at least four months ahead of schedule. Ray Fitzgerald, president of the US subsidiary, expects the ramp-up to be finished within the next six to nine months, calling America “the biggest market of all.”

That growth is backed by hard numbers. Revenue in the first quarter surged 121% to A$74.1 million, while customer payments more than quadrupled to A$77.4 million. Operating cash flow hit a record A$24.1 million. The pipeline holds 312 active projects worth a combined A$2.2 billion, with roughly half coming from Europe. The US Department of Homeland Security has standardised its procurement of counter-drone gear, and Kansas City is already building an airspace surveillance network using DroneShield as the core detection layer.

Yet the same quarter that produced these records also brought the ASIC investigation into sharp focus. The regulator is examining DroneShield’s communications around a A$7.6 million US government contract announcement in November 2025 — a deal the company later retracted after clarifying it was merely a regulatory reissuance of existing work. Around that time, former CEO Oleg Vornik and former chair Peter James sold nearly A$70 million worth of stock. The shares subsequently collapsed. The ASIC probe now hangs over the company’s governance, eroding investor trust.

DroneShield has responded with a leadership overhaul. Angus Bean took over as CEO and Hamish McLennan as board chairman. The duo has introduced a mandatory minimum holding period for all directors and senior executives — a clear attempt to restore confidence. Bean’s compensation package, which includes nearly 290,000 performance options as a long-term incentive, will be put to a shareholder vote at the annual general meeting in Sydney on May 29.

Analysts remain divided. Bell Potter rates the stock a Buy with a A$4.80 target, betting the operational story wins out. Jefferies is more cautious, sticking with Hold and a A$3.70 target. The wide spread reflects how the market is weighing the booming business against the regulatory overhang. The relative strength index of 34 suggests the stock is technically oversold, trading about 14% below its 50-day moving average.

Despite the governance cloud, the underlying business shows no sign of slowing. The company is building its own production facility inside the European Union, with first systems due by mid-2026. Year to date, the shares are still up 184% — a reminder of just how far they have come before the probe hit. At the AGM, Bean will need to convince shareholders that the new guard can keep the growth machine humming while the ASIC probe runs its course. The June quarterly report, due shortly after, will provide the next hard data point.