DroneShield’s Strategic Expansion Fuels Record Growth and Future Confidence
02.02.2026 - 05:08:04
The Australian counter-drone technology firm DroneShield has reported a landmark financial performance for FY25, coupled with a clear and substantial revenue runway for the coming year. The company's latest figures reveal not just explosive growth but also a strategic pivot designed to secure its long-term market position.
In a quarterly update conference call held on January 27, 2026, DroneShield announced a quadrupling of its revenue compared to the prior year. The full-year 2025 revenue reached 216.5 million AUD, driven by a record-breaking fourth quarter.
Providing rare visibility, management disclosed that 95.6 million AUD in revenue is already under contract for 2026, a figure frequently rounded to approximately 100 million AUD of "locked-in" sales. This secured base is supported by a staggering commercial sales pipeline valued at around 2.09 billion AUD as of January 2026.
Key financial and operational metrics include:
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- FY25 Revenue: 216.5 million AUD
- Contracted Revenue for 2026: 95.6 to ~100 million AUD
- Total Sales Pipeline: ~2.09 billion AUD
- SaaS Revenue Target: 30% of total sales by end of 2026
A Dual-Pronged Strategic Shift
Beyond the headline numbers, DroneShield's leadership emphasized a deliberate strategic evolution. The company is focusing on expanding into higher-margin Software-as-a-Service (SaaS) offerings and diversifying into civilian market segments. The goal is for SaaS to constitute 30% of total revenue by the close of 2026.
Scaling Operations to Meet Demand
To convert its substantial opportunity pipeline into delivered orders, DroneShield is undertaking a major operational expansion. Annual manufacturing capacity is slated for a dramatic increase from 500 million AUD to 2.4 billion AUD by the end of 2026. This scale-up will be facilitated by new assembly facilities in the United States and Europe.
The final quarter of 2025 provided significant momentum, featuring several key contract wins. In December, the company secured an 8.2 million AUD contract with a Western military customer, with payment anticipated in the first quarter of 2026. Additional orders from entities including the U.S. government were also highlighted. As part of its forward-looking strategy, DroneShield is evaluating a potential U.S. stock exchange listing.
The company's roadmap through 2026, therefore, rests on two core pillars: cultivating greater recurring software revenue while simultaneously building a significantly enlarged production foundation. This dual approach aims to systematically transform its multi-billion-dollar pipeline into sustained financial results.
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