15th Defense Contract Secured as Asia Pacific Military Adds to Growing Order Pipeline

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Droneshield.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

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.

DroneShield Ltd. (DRO:ASX; DRSHF:OTC) announced that it had received a new standalone contract valued at AU$6.2 million for delivery to a military end-user in the Asia Pacific region. The contract was awarded through an in-country reseller, which is a wholly owned subsidiary of a publicly listed multinational group responsible for distributing defense solutions to a government client in the region.

The agreement covers the supply of integrated defense technology, including third-party hardware interoperable with DroneShield's proprietary command-and-control software platform, DroneSentry-C2. The company stated that delivery and cash payment are expected in 2026, with no additional material conditions required to complete the contract.

This marks the 15th standalone contract DroneShield has received from the same reseller in the past two years, amounting to over AU$48 million in cumulative value. The company clarified that there is no ongoing contractual obligation for further orders from this customer.

In a company announcement, DroneShield noted that the identity of the reseller and end-user is not considered information that would materially affect the price or value of the company's securities. The statement added that the disclosure includes all relevant information needed to assess the impact of the contract.

DroneShield develops artificial intelligence-based platforms focused on counter-drone and autonomous system defense solutions. The company serves customers across military, intelligence, law enforcement, and critical infrastructure sectors.

Coordinated Advances in Counter‑Drone Defense

NATO detailed developments from Project Flytrap 4.5 on December 1, following a two‑week counter‑drone exercise held in Germany from November 10 to 21. The initiative brought together soldiers, procurement teams, and industry partners to test off‑the‑shelf counter‑uncrewed aircraft systems for rapid procurement and integration into allied air defense networks. Captain Kurt Blumeyer of the U.S. Army's 52nd Air Defense Artillery Brigade said the exercise "provided ready‑now solutions from U.S. and worldwide industry to come together in one place and test their ability to integrate and interoperate with current exquisite radar systems that we already have in the force, as well as our command and control systems." He added that lessons drawn from recent conflicts had required faster acquisition cycles, stating, "we have to be able to move very quickly with new solutions to counter this one‑way attack drone mass that we're seeing."

Pentagon News reported on December 3 that the War Department had issued a request for information to gauge the industry's ability to manufacture more than 300,000 drones quickly and at low cost as part of the government's drone dominance initiative. Secretary of War Pete Hegseth stated that "drone dominance will do two things: drive costs down and capabilities up," and explained that the department planned to fund the production of approximately 340,000 small unmanned aerial systems over two years using US$1 billion allocated under the program. He also said the department "cannot afford to shoot down cheap drones with US$2 million missiles," underscoring the emphasis on scalable and cost‑efficient unmanned systems.

According to remarks delivered on December 17 at a Joint Interagency Task Force 401 Interagency Summit, U.S. Army Brigadier General Matt Ross described efforts to implement a unified command‑and‑control framework for counter‑drone systems across federal agencies. He said, "that new capability has got to plug in immediately to a common C2 framework," and noted that enterprise‑wide licensing typically took over a year but that his task force had planned to move more rapidly to support operational needs. Ross also said the task force had coordinated with federal and local agencies to prepare for high‑profile events in 2026, adding, "I want to make sure that we have just as robust protection against Group 1 and Group 2 systems that are smaller and much more likely to be seen over a widely attended gathering, stadium, or a watch party."

Following this, on December 22, the Federal Communications Commission formally expanded its Covered List to include uncrewed aircraft systems and components produced in foreign countries. The ruling effectively barred new foreign drones and drone parts—including flight controllers, navigation systems, communications devices, motors, and batteries—from receiving FCC authorization, importation, or lawful use in the United States. The Commission stated that both entire UAS platforms and their critical components must now be domestically sourced. The policy shift signaled a broader national security posture and extended to commercial and consumer drones, not just defense-grade systems.

According to the FCC’s public notice, the designation followed a National Security Determination by an Executive Branch interagency body. While existing authorizations for legacy systems remain in effect, the ruling applies to all new equipment, eliminating future access to the U.S. market without a specific exemption from the Department of Defense or Department of Homeland Security.

Industry analysts characterized the move as a structural inflection point for the U.S. unmanned systems ecosystem. In combination with the Drone Dominance initiative and the recently signed FY26 National Defense Authorization Act, which allocated an estimated US$5 billion in new unmanned-related programs, the regulatory framework was seen as strengthening the foundation for record procurement levels beginning in 2026.

Institutional Coverage Supports Growth Trajectory

On December 16, Bell Potter analyst Baxter Kirk described DroneShield's AU$49.6 million European defense contract as the second-largest in company history, bringing total orders from the same reseller to more than AU$86.5 million. Kirk highlighted that about 24% of Bell Potter's 2026 hardware revenue forecast had already been secured based on announced contracts.

A day later, in a full research note, Kirk reiterated a Buy rating on the stock and set a revised target price of AU$4.40 per share, down from AU$5.30, citing a change in weighted average cost of capital. At the time of publication, this represented a 78% return potential. He noted that DroneShield expected full delivery and payment in Q1 2026, supported by inventory already on hand.

Kirk pointed to DroneShield's position in radiofrequency detect-and-defeat systems, stating, "DroneShield has the largest and fastest growing team focused on the RF detect/defeat vertical." He cited strong government relationships, battlefield deployment, and advanced AI capabilities as key advantages. In support, he referenced U.S. Air Force comments naming DroneShield's DroneGun Mk4 and RFPatrol Mk2 as the only solutions fully aligned with Air Force mission requirements.

Kirk also noted expanding interest in civil applications. In November, DroneShield released a joint white paper on counter-drone strategies at airports and confirmed its exploration of cost-effective hard-kill technologies. Bloomberg, in a December 17 report, observed that shares had risen over 250% year-to-date, supported by multiple defense contract wins and growing demand across the sector.

On December 23, Kirk commented on the newly announced AU$6.2 million Asia Pacific military contract in a research flash, stating, “Order intake accelerating. A total of AU$86 million worth of contracts have been announced by DroneShield in November and December, perhaps reflective of increased allocation towards counter-drone technology by nations, with defence budgets rolling over to FY26e.” He estimated that Bell Potter’s 2026 revenue forecast of AU$297 million was now 26% secured by ASX-announced contracts.

Record Growth Positions DroneShield for Sustained Operational Momentum

DroneShield recently reported a significant increase in financial performance, with the quarter ending September 30, 2025, marking its highest revenue on record. According to the company's quarterly report, DroneShield generated AU$92.9 million in revenue, up from AU$7.8 million in the same quarter of 2024, representing a 1,091% increase year over year. Committed revenue for the year to date stood at AU$193.1 million, compared to AU$57 million for all of 2024.

Cash receipts for the quarter reached AU$77.4 million, while operating cash flow turned positive at AU$20.1 million, compared to a negative AU$19.4 million in the prior-year period. The company also noted a 400% year-over-year increase in Software-as-a-Service (SaaS) revenue to AU$3.5 million. New product releases such as DroneSentry-C2 Enterprise and SentryCiv, a subscription-only product targeting the civilian sector, were among several recent developments.

Additional highlights included the completion of a AU$62 million European contract, an AU$11.7 million U.S. Department of Defense research contract, expansion of its manufacturing and R&D footprint, and the company's inclusion in the S&P/ASX 200 Index.

DroneShield reported AU$212.8 million in cash and cash equivalents at quarter-end, with no drawn financing facilities, positioning it with a strong liquidity profile moving into 2026.

The company's December 2025 investor presentation emphasized sustained global demand, with customers in over 50 countries and a growing reliance on software-driven integrated solutions. The company also highlighted expanding recurring revenue streams through software licensing, support, and training. Its AI-powered SensorFusion engine underpins its detection and response systems, which are interoperable with third-party platforms. Management noted that rising geopolitical tensions, increased defense budgets, and regulatory pressures are driving procurement globally. 

Ownership and Share Structure¹

Vanguard Group holds approximately a 5.47% stake in the company. Fidelity Management and Research holds approximately 7.49%. State Street Corporation holds approximately 6.34%, and J.P. Morgan Chase & Co. holds 6.41%. 

Management and insiders hold 5.12%. 

DroneShield has 930.73 million outstanding shares and 913.42 million free-float traded shares. Its market cap is AU$3B. Its 52-week range is AU$0.58–AU$6.70 per share.