ADF Drone Racers Get a High-Tech Assist in 2026 Collaboration

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.
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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.

DroneShield Ltd. (DRO:ASX; DRSHF:OTC), a global developer of counter-drone technology, announced on January 7, 2026, that it will continue its support for the Australian Defence Force (ADF) Drone Racing Team throughout the year. The collaboration builds on a longstanding relationship, including joint appearances at events such as Avalon 2025.

The partnership extends beyond traditional sponsorship. DroneShield has engaged directly with ADF Drone Racing initiatives to promote skills development, knowledge exchange, and innovation in drone operations. Oleg Vornik, CEO of DroneShield, stated, "The ADF Drone Racing Team continues to set the benchmark for advanced drone operations, and we're proud to support their journey in 2026. This collaboration is about more than racing. It's about building the skills and technologies that will define the next generation of Defence capability."

Wing Commander Keirin Joyce, President of the ADF Drone Racing Team, added that the partnership "helps drive innovation across Defence." The effort includes integrating piloting skills with real-world applications of counter-drone technology, contributing to broader defence capability development.

This announcement comes as DroneShield continues to scale its operations across global defense and civilian sectors. As of the first three quarters of 2025, the company reported AU$165.2 million in revenue, a 431% increase over the prior year. It also secured AU$193.1 million in revenues year-to-date and maintained a AU$235.2 million cash balance as of October 14, 2025.

Governments Expand Counter-Drone Investments and Infrastructure

According to a December 1 article from Breaking Defense titled "Biggest reform 'in 50 years' coming for Australian defense acquisition, minister says," Australia announced the creation of a new Defense Delivery Agency set to launch on July 1. The agency will oversee approximately 40% of the country's defense spending and report directly to the defense minister, bypassing the traditional departmental structure. Defense Minister Richard Marles and Minister for Defence Industry Pat Conroy said the move was intended to accelerate the delivery of complex defense systems and improve cost efficiency, as the number of high-complexity projects has more than doubled over the past 15 years.

Malcolm Davis of the Australian Strategic Policy Institute commented that the restructuring aimed to address persistent delays and budget overruns, noting that the current system suffered from excessive bureaucracy. However, he cautioned that without additional funding, the new agency's effectiveness could be limited. He also questioned how well the three merged groups would integrate, describing the effort as requiring not just structural consolidation but also a cultural shift within defense procurement.

The counter-unmanned aircraft systems (C-UAS) sector continued to gain prominence in early 2026, with both civilian and defense agencies expanding funding and operational frameworks for drone mitigation. As drone-related incidents at public events and sensitive locations increased in frequency, stakeholders across federal and local levels accelerated deployment of detection and tracking technologies.

According to a January 4 report from DroneLife, the Federal Emergency Management Agency (FEMA) awarded US$250 million in grant funding to 11 U.S. states and the National Capital Region through the newly established Counter-UAS Grant Program. This initial funding phase was part of a larger US$500 million initiative spanning fiscal years 2026 and 2027. FEMA described the grant as the "fastest non-disaster grant deployment in its history," issuing awards just 25 days after the application deadline.

In a January 5 article published by Business Insider, the commander of the Pentagon's Joint Interagency Task Force 401 emphasized the need for a multifaceted approach to drone threats. He stated that "no single piece of tech is going to defeat all drone threats," and highlighted the importance of integrating both kinetic and non-kinetic systems to adapt to evolving drone capabilities.

Further insights were provided in a January 7 article by Lindsey Wilkinson of FEDSCOOP. The report noted that California received nearly US$34.6 million, with Texas and Washington, D.C., also receiving allocations exceeding US$28 million. The funding was directed toward bolstering "drone-tracking infrastructure and detection technologies" in preparation for the FIFA World Cup 2026 and America 250 events. Karen Evans, FEMA's acting administrator, said, "We knew we needed to act quickly to keep the World Cup safe from the rising threat of unmanned aircraft systems and that's exactly what we did."

Wilkinson also reported that local and state-level authorities, while receiving the equipment, faced operational limitations due to federal restrictions. To address this, the Department of Justice and the Federal Bureau of Investigation planned to deputize local law enforcement and correctional officers. Recipients were also required to undergo specific training before accessing mitigation capabilities.

Institutional Coverage Highlights Sector Engagement

On December 16, Bell Potter analyst Baxter Kirk discussed a US$49.6 million European defense contract, which he described as the second largest in the company's history. He stated that total orders from the same reseller had exceeded US$86.5 million and noted that approximately 24% of Bell Potter's 2026 hardware revenue forecast had already been secured based on contracts announced at that time.

In a subsequent research note published on December 17, Kirk reiterated a Buy rating and set a revised target price of US$4.40 per share, down from US$5.30, citing a change in the weighted average cost of capital. He stated that the company expected full delivery and payment in the first quarter of 2026, supported by the inventory already held.

Kirk also commented on the company's position in radiofrequency detect and defeat systems. He wrote that "the company has the largest and fastest growing team focused on the RF detect and defeat vertical," and cited government relationships, battlefield deployment, and artificial intelligence capabilities as differentiating factors. He referenced comments from the U.S. Air Force, which had named the DroneGun Mk4 and RFPatrol Mk2 as the only solutions fully aligned with Air Force mission requirements.

He further noted increasing interest in civil applications, pointing to the release of a joint white paper in November on counter-drone strategies at airports and the exploration of cost-effective hard kill technologies. Bloomberg reported on December 17 that shares had risen more than 250% year to date, supported by multiple defense contract wins and growing demand across the counter-drone sector.

On December 23, Kirk addressed a newly announced US$6.2 million Asia Pacific military contract in a research flash. He stated, "Order intake accelerating. A total of US$86 million worth of contracts have been announced 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 US$297 million had been approximately 26% secured by contracts announced on the ASX.

Building the Future of Drone Defense

As of December 2025, the company reported a sales pipeline valued at AU$2.55 billion, with over 300 active projects across defense, government, and civilian markets. DroneShield's product portfolio includes portable and fixed solutions, such as the DroneSentry-X Mk2, supported by proprietary artificial intelligence and software-as-a-service (SaaS) offerings.

In parallel, the company has continued its international expansion, with manufacturing initiatives in Australia, Europe, and the United States expected to come online through 2026. With growing global demand for drone mitigation technologies and a strong position as the only publicly listed pure-play counter-drone company, DroneShield's operational and strategic initiatives aim to support scalable, real-time solutions across a wide array of threat environments. 

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 5.09%. 

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.