Prestigious Honors Show How This Defense Company Supports Veterans and Leads in Innovation

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DroneShield Ltd. (DRO:ASX; DRSHF:OTC), headquartered in Warrenton, Virginia, has been honored with the prestigious 2024 HIRE Vets Medallion Award in recognition of its commitment to hiring and supporting U.S. military veterans. Presented by the U.S. Department of Labor under the HIRE Vets Act, this award highlights employers dedicated to veteran recruitment, retention, and professional growth. U.S. Acting Secretary of Labor Julie A. Su acknowledged DroneShield's dedication. This marks the company's third consecutive year receiving this honor.

CEO Matt McCrann praised the experience and dedication veterans bring to DroneShield, particularly in technical and leadership roles. He emphasized the alignment between veteran values and DroneShield's mission within the defense sector in the news release, stating, "Our veterans bring a wealth of experience and a commitment to excellence that aligns perfectly with our values at DroneShield. We are deeply honored to receive the HIRE Vets Medallion Award; it's a true testament to our ongoing commitment to providing veterans with rewarding careers and to supplement our team with the highest level of expertise in the defense industry."

In addition to the HIRE Vets Medallion, DroneShield was also awarded the prestigious Platinum Award for Innovation by Military and Aerospace Electronics for its Immediate Response Kit (IRK). Recognized as a "superb innovation characterized by a groundbreaking approach to meeting a need" within the defense and aerospace sector, the IRK includes the DroneGun Mk4 and RfPatrol Mk2. Both of these provide versatile and effective solutions for detecting and neutralizing unauthorized drones. Packaged in a portable case, the IRK offers flexibility for ground, vehicle, and wearable operations. This makes it highly adaptable for field missions.

McCrann expressed additional pride in the team behind the IRK, emphasizing that the award "reflects our commitment to creating cutting-edge solutions that address the evolving needs of our customers." The recent accolades reinforce DroneShield's leadership in the counter-drone technology sector and highlight its continued focus on supporting veterans and advancing defense technology.

Counter-Drone and Defense Technology Market Trends

In September, JP Morgan noted that the U.S. Department of Defense (DOD) has prioritized defense innovation by supporting public-private partnerships to address emerging national security threats. The DOD's National Defense Science and Technology Strategy, released in 2023, outlined critical areas of technology. These included artificial intelligence (AI), autonomy, and quantum science. The report highlighted challenges for defense tech startups, noting that the DOD's procurement process has historically hindered the entry of small, innovative firms. Programs like the Defense Innovation Unit (DIU) and AFWERX were designed to support these startups, ensuring that critical technologies transition smoothly from development to deployment.

According to a MarketsandMarkets report on October 26, the global anti-drone market was valued at US$2.16 billion in 2024, with projections reaching US$7.05 billion by 2029, reflecting a compound annual growth rate (CAGR) of 26.7% over the forecast period. Key drivers included increased government spending on counter-drone technologies and a rise in security breaches involving unauthorized drones. The report also highlighted hybrid anti-drone systems, which combine electronic, kinetic, and laser countermeasures, as particularly effective in providing a comprehensive defense solution against UAVs across large operational ranges.

Most recently, on November 11, Politico reported that defense technology startups have faced obstacles in securing Pentagon contracts. The article noted a call for increased procurement dollars to scale up advanced defense capabilities. Industry experts argued that the slow budget process risks making technology obsolete before it reaches operational status. According to Politico, figures in the defense tech space, such as Anduril's Chris Brose, emphasized the need for political support to reform procurement and allow quicker adoption of AI-enabled systems and other advanced technologies.

Company Catalysts

According to DroneShield's quarterly report from September 30, the company has experienced significant growth, with YTD 3Q24 cash receipts totaling AU$30.5 million, up 20% from the same period in 2023. DroneShield's robust AU$1.1 billion sales pipeline includes 34 sale opportunities, each exceeding AU$5 million, indicating strong demand for counter-drone technologies.

The company anticipates continued growth fueled by recent international hires, strategic positioning within the U.S. Department of Defense framework, and partnerships across NATO countries. The recent expansion of DroneShield's Sydney facility, projected to increase manufacturing capacity, further positions the company to meet rising market demand. Additionally, SaaS revenue, up 93% in 1H24 compared to 1H23, reflects a growing adoption of DroneShield's AI-driven software solutions.

Experts on DroneShield

Bell Potter Analyst Daniel Laing recently upgraded DroneShield to a Buy rating from Hold in his October 28 report, citing a target price with over 15% upside potential. "We believe the current share price offers an attractive entry point, given DroneShield's solid momentum heading into 2025, with AU$18M in contracted revenue, strong market demand, and a favorable long-term growth outlook," Laing noted.

Similarly, Shaw and Partners Analyst Akra maintains a Buy rating on DroneShield, projecting a 29% potential return. Akra highlighted that "DroneShield achieved positive free cash flow and EBITDA in full-year 2023 and demonstrates a strong medium-term growth profile."

Ownership and Share Structure

Management and insiders own 6.88% of the company, according to DroneShield. CEO and Managing Director Oleg Vornik owns 1.63% with 15 million (15M) options, on a fully diluted basis. Nonexecutive Chairman Peter James holds 0.43% with 935,000 shares and 3M options, on a fully diluted basis. Nonexecutive Director Jethro Marks owns 0.16%, with 1.5M options, on a fully diluted basis.

According to Reuters, about 10% of the company is held by strategic investors.

Epirus Inc. is the largest shareholder, with 2.12% or 18.5M shares, Reuters said.

Structurally, DroneShield has 872.12M outstanding shares and 782.40M free float traded shares.

Its market cap is AU$898.28 million. Its 52-week range is AU$0.26−2.72 per share.