Highlights

  • Boresight shares traded at AUD 0.30, up 1.72%, at the time of writing, on 3 August 2026.
  • FY26 Revenue reached approximately A$6.7 million, increasing about 55% from FY25.
  • The company manufactures expendable target drones used in counter-drone Training .
  • Growth priorities include expanding US Manufacturing and converting its customer pipeline into contracts.

Boresight Ltd (ASX:BST) is a recently listed Canberra defence-technology company that manufactures expendable target drones for counter-drone training. With revenue growth, a debt-free Balance Sheet and expansion plans in the United States, the company is beginning to attract greater investor interest. However, its limited operating history as a listed company and relatively small scale mean caution remains important.

Share price in focus

Boresight shares traded at AUD 0.30, up 1.72%, at the time of writing, on 3 August 2026. The company listed on the ASX on 10 June 2026, making it a relatively new entrant to the public market.

For a newly listed small-cap company with a concentrated share register, daily movements can be influenced by modest trading activity, investor sentiment and broader interest in the defence-technology sector. Such movements should be assessed alongside the company's financial progress, contract pipeline and execution risks.

Recent developments

Boresight's recent progress has centred on its ASX listing, FY26 revenue growth and continued development of its defence-drone product range. The company is also advancing manufacturing capabilities in the United States while seeking to convert customer interest into repeat contracts.

As an early-stage micro-cap, Boresight remains exposed to fluctuations in trading Liquidity and market sentiment. The company's longer-term performance will depend more heavily on contract wins, Recurring Revenue and operational execution than short-term share-price movements.

What Boresight is—and a note on the ticker

The listed entity is Boresight Ltd, trading under ASX Code BST, with its operating Business based in Fyshwick, Canberra.

The BST code was previously used by another ASX-listed company that was Delisted in 2023 following a Takeover . The current Boresight listing is a separate business using the recycled ticker and is not connected to the former listed entity.

Boresight is a defence-technology manufacturer classified within the industrials sector. It was spun out of Canberra-based defence-intelligence firm Criterion Solutions in 2020.

The company manufactures low-cost, “attritable” uncrewed aerial target drones used to train and test counter-drone, or counter-small-unmanned-aerial-system, crews. Attritable systems are designed to be expendable and replaced after use.

In simple terms, Boresight produces the target drones that military personnel can shoot down, jam or intercept during training exercises rather than manufacturing the defensive weapons themselves. This specialised positioning is central to the company's commercial strategy.

Products, customers and contracts

Boresight's flagship product is the BQ-400 quadcopter target, supported by a ground-control station and swarming software that allows a single operator to control multiple target drones simultaneously.

Its wider product range includes:

  • The larger BQ-750 target drone.
  • The higher-speed BQ-300, which remains under development.
  • Fixed-wing target systems.
  • The BS-350 intelligence, surveillance and reconnaissance drone, being developed with Australian Defence Force funding.

Boresight has stated that it has sold more than 5,000 target systems over approximately five years to military customers across several countries, including Australia, the United States, the United Kingdom, Canada and parts of Europe.

The company has also reported a 12-month Australian Defence Force Supply contract and involvement with the Sovereign UAS Program, alongside the establishment of a new US manufacturing Facility .

These relationships provide an indication of commercial Demand , although the company's future growth will depend on converting defence-sector engagement into repeat and larger-scale orders.

Financial performance, cash and funding

For the financial year ended 30 June 2026, Boresight reported revenue of approximately A$6.7 million, up about 55% from FY25 revenue of roughly A$4.36 million.

FY25 revenue had already increased from approximately A$2.77 million in FY24, indicating continued top-line growth across recent reporting periods.

Fourth-quarter FY26 revenue was approximately A$2.44 million.

The company remained loss-making at the net level in FY25, recording a net loss of approximately A$0.6 million, although it described its operating position as close to breakeven.

FY25 gross Margin was approximately 64.5%, compared with around 77% in the previous year, as the Cost of Goods Sold increased faster than revenue. This margin trend remains an important metric to monitor as production scales.

Boresight reported cash of approximately A$7.88 million as at 30 June 2026 and no Debt , following its A$8.0 million initial public offering.

Revenue should not be confused with profit, while cash on hand represents the company's available liquidity rather than operating cash generation. Continued Investment in manufacturing, product development and international expansion may increase future cash requirements.

Sector backdrop and growth drivers

The investment case is linked to the increasing role of drones in modern military operations and the growing need for effective counter-drone training.

Governments and defence organisations are allocating greater attention and funding to uncrewed aerial systems, autonomous technologies and counter-drone capabilities. This creates potential demand for realistic and expendable target systems that can be used repeatedly during training exercises.

Boresight's main growth drivers include:

  • Converting its customer and contract pipeline into recurring orders.
  • Increasing production through its US manufacturing facility.
  • Expanding its target-drone range to represent different aerial threats.
  • Developing the BS-350 reconnaissance platform.
  • Increasing sales to allied defence forces and major defence contractors.

Because target drones are consumed or damaged during training, the business may benefit from recurring replacement demand. However, the strength of this model will depend on whether initial orders develop into sustained and budgeted procurement programs.

For a company of Boresight's size, turning sector interest into repeat contracted revenue will be critical to establishing a durable commercial position.

Risks and what to watch

The risks are considerable and typical of an early-stage defence micro-cap.

Defence procurement can be lengthy, uneven and influenced by government budgeting cycles. As a result, revenue may fluctuate significantly between reporting periods.

The company remains small and has not yet established consistent profitability. Its share register is also concentrated, leaving a relatively limited free float that may contribute to Volatility and lower liquidity.

Boresight must also manage the execution of its US expansion, export-control requirements, manufacturing capacity and product-development timelines. Competition in the defence-drone market may place pressure on pricing and margins.

A portion of the company's future revenue also depends on newer products that remain under development or in the early stages of commercialisation.

Key milestones include:

  • New defence contract awards.
  • Growth in repeat orders from existing customers.
  • Increased production from the US facility.
  • Progress on new target-drone models.
  • Future quarterly cash-flow and financial reports.

Boresight is a revenue-generating defence-technology company operating in a specialised segment with a supportive industry backdrop. However, it remains a speculative, recently listed micro-cap whose long-term outlook will depend on contract conversion, recurring demand and disciplined execution.