Highlights

  • DroneShield has secured an AUD 8.2m contract to supply counter-drone systems to a western military end customer.
  • Delivery is expected before the end of 2025 or in early Q1 2026, with payment anticipated in Q1 2026.
  • The contract adds to approximately AUD 97.7m in locked-in revenue as the company enters 2026.

DroneShield Limited (ASX:DRO) has announced the award of an AUD 8.2 million contract for the supply of counter-drone equipment to a western military end customer. The agreement adds to the company’s contracted revenue base as deliveries are scheduled for completion before the end of 2025 or in early 2026, with payment expected in the March 2026 quarter.

Contract Award and Scope

The AUD 8.2 million contract has been secured through an in-country reseller that is a wholly owned subsidiary of a global, publicly listed defence group. The reseller will distribute the equipment to a western military government department within its jurisdiction.

The contract covers the supply of handheld counter-drone systems, associated accessories, spare kits and software updates. DroneShield confirmed that all hardware included in the agreement is currently held as finished inventory, allowing for near-term delivery without the need for additional manufacturing lead times.

Delivery and Payment Timeline

Delivery of the contracted equipment is expected to be completed before the end of calendar year 2025 or in early Q1 2026, subject to final logistics scheduling. Full cash payment under the contract is anticipated to be received during Q1 2026. The agreement does not include any additional material conditions that must be satisfied prior to completion.

The contract adds incremental revenue certainty across the 2025 and 2026 financial years, depending on final delivery timing.

Ongoing Relationship With Reseller

Over the past seven years, DroneShield has received 38 separate contracts from the same reseller, with cumulative contract value exceeding AUD 9.6 million prior to the latest agreement. While the historical relationship has involved repeat orders, there are no contractual obligations for further purchases by either the reseller or the end customer.

DroneShield confirmed that the identity of the counterparty is not considered information that would reasonably be expected to have a material impact on the price or value of its securities.

Revenue Position Entering 2026

Including previously announced contracts, DroneShield is entering 2026 with approximately AUD 97.7 million in locked-in revenue. This figure excludes the timing allocation of hardware revenue from the newly announced AUD 8.2 million contract, which may fall into either the 2025 or 2026 financial year depending on delivery completion.

Market Performance Snapshot

DroneShield shares were trading at AUD 3.235 per share, up AUD 0.104 or 3.35% during trading hours. Over the past month, the share price has increased by 63.96%, while the twelve-month gain stands at 348.61%.