Australian Counterdrone Co. Stock Surges as Europe Rearms

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Across Europe, national governments and defense blocs are stepping up both offensive and defensive unmanned systems planning. A recent Defense News report noted that key European defense spenders, including Germany, the U.K., and France, reaffirmed support for Ukraine and enhanced air defense cooperation, with deployments of counter-drone forces to Finland and Belgium and plans to increase military aid programs in 2026. This comes in the context of broader hybrid threats that Europe has observed, including drone incursions and airspace violations.

The global drone industry has transitioned from niche defense applications to a central element of military modernization and deterrence strategy across Europe, NATO, and allied support for Ukraine. From tactical reconnaissance and first-person-view (FPV) strike platforms to counter-UAS systems, unmanned aerial vehicles (UAVs) and related systems are increasingly incorporated into defense planning and procurement programs, driven by demonstrated battlefield utility in the Russia–Ukraine war and heightened concerns over airspace incursions into NATO territory.

On December 15, the Belgian federal government announced a €140M procurement for light drones for surveillance and reconnaissance purposes, aimed at increasing security in the Baltic region. The procurement is structured through the NATO Support and Procurement Agency.

Rising Geopolitical Tensions Drive Drone Sector

The global military drone market is expected to grow at a compound annual growth rate (CAGR) of approximately 12% through the end of the decade. The expansion is being driven by rising geopolitical tensions, evolving defense doctrines, and the increasing role of unmanned systems in the future of warfare.

Defense budgets across the world are rising in response to these pressures. NATO countries, in particular, have accelerated spending following Russia's invasion of Ukraine, with several European governments committing to meet or exceed the alliance's 2% of GDP defense-spending target.

As part of these budget increases, governments are allocating a growing share of funding to unmanned aerial systems (UAS) and counter-UAS (C-UAS) technologies.

DroneShield Ltd. Awarded AU$49.6 Million Contract

DroneShield Ltd. (DRO:ASX; DRSHF:OTC) is an Australian defense manufacturer that develops AI-enabled hardware and software counter-drone solutions designed to detect, track, identify, and neutralize unmanned aerial systems. The company's offerings are utilized by military, government, and critical infrastructure customers to counter both commercial and military-grade drones, employing radio frequency sensing, electronic attack, and software-defined intelligence platforms.

On December 16, DroneShield announced a AU$49.6 million contract awarded via a European in-region reseller for delivery to a European military end customer. The contract covers handheld counter-drone systems, accessories, and software updates, with delivery and payment expected to be completed in the first quarter of 2026, according to DroneShield. DroneShield noted that a significant portion of the required hardware inventory is already held on hand, which enables accelerated fulfillment timelines.

Bell Potter industrials analyst Baxter Kirk reported in a research flash that day that the European order represents DroneShield's second-largest contract to date, bringing the total value of contracts received from the same reseller to more than AU$86.5 million across 15 orders.

Kirk stated that the repeat nature of the orders reflects sustained European demand for counter-drone capabilities and noted that, based on announced contracts, approximately 24% of forecast CY26 hardware revenue is already secured, excluding subscription-based software revenue.

The next day, December 17, 2025, Kirk put out a full updated research note, where he reiterated his Buy rating on the stock. 

In a note, Bloomberg reported that DroneShield shares rose sharply following the announcement, extending gains that have seen the stock increase more than 250% year-to-date, amid a series of defense contract wins. Bloomberg also highlighted that peer counter-drone companies reported large new orders during the same period, pointing to broader momentum across the counter-UAS sector.

In recent months, DroneShield has also expanded its engagement with civilian and dual-use applications. In November, the company released a joint white paper with SRI Group titled "Best Practices for Counter-Drone Deployment at Civil Airports," outlining technology-driven frameworks for mitigating drone-related disruptions at airports. Around the same time, CEO Oleg Vornik told Defence Connect that the company is evaluating potential expansion into hard-kill counter-drone systems, provided solutions can be developed that are cost-effective, scalable, and avoid collateral damage. Historically, DroneShield's portfolio has focused on soft-kill detection and electronic defeat technologies.

Ownership and Share Structure¹

Vanguard Group holds a 5.45% stake in the company. Fidelity Management and Research holds approximately 7.49%. State Street Corporation holds approximately 7.40%, and J.P. Morgan Chase & Co. holds 5.20%

Management and insiders hold 5.12%.

DroneShield has 909.94 million outstanding shares and 897.68 million free-float traded shares. Its market cap is AU$2B. Its 52-week range is AU$0.58–AU$6.70 per share.