DroneShield's Software Arm Stumbles as Air Force Reworks Kit Tender

DroneShield shares gave up 4.1% on Friday, caught in a broad selloff across the Australian market, after the counter-drone specialist disclosed a statutory loss after tax of A$32.2 million for the first half of 2026.

The red ink on the bottom line was matched by weakness further up the income statement. On an adjusted basis, earnings before interest, taxes, depreciation and amortisation also came in negative, at a loss of A$12.4 million for the six-month period.

Subscription Revenue Falls Short of Internal Bar

Top-line momentum, however, tells a different story. Revenue for the half reached A$125.8 million, while software subscription receipts contributed A$11.5 million — short of the A$14.2 million the company had set itself as an internal target. The subscription line is the piece of the business investors watch most closely for recurring quality, and the miss puts that metric under a spotlight.

Management left its full-year guidance untouched. DroneShield reiterated a revenue range of A$250 million to A$270 million for 2026 as a whole. Committed revenue stood at A$261 million in October, a figure that captures orders booked for the full year.

Air Force Extends Window on Kit Components

Separately, the US Air Force has amended a solicitation tied to DroneShield's Immediate Response Kits. The 502nd Contracting Squadron is seeking suppliers for components needed to operate the kits at Joint Base San Antonio, and on Friday it pushed the deadline for submissions out to 24 November 2026.

According to the procurement notice, the kits arrived at the base without certain parts, and the request focuses on the supplementary equipment required to bring them into service. No award to DroneShield is attached to the process at this stage — for the company it represents a procurement opportunity rather than a booked order, with the Air Force accepting bids until the revised closing date.