• FY2026 Committed Revenue was $261 million as at 12 October 2026, compared with $193.1 million on 20 October 2025.
  • The figure is near the midpoint of the $250 million to $270 million outlook issued on 28 July 2026.
  • Committed revenue beyond FY2026 is smaller, at $29 million for FY2027 and $17 million for FY2028 and beyond.

The committed revenue update

DroneShield Limited (ASX:DRO), which supplies counter-drone and radio-frequency detection systems, has published an update on its FY2026 Committed Revenue together with an investor presentation. The company reported Committed Revenue of $261 million for FY2026 as at 12 October 2026, which is near the midpoint of the $250 million to $270 million revenue outlook it issued on 28 July 2026. DroneShield says it remains on track to land within that range. All figures are in Australian dollars.

The company defines Committed Revenue as the value of hardware, services, warranties and subscriptions delivered and scheduled for delivery within the period. It therefore combines revenue already recognised with confirmed purchase orders still to be delivered, and the update does not split the $261 million between the two. It is a measure of confirmed orders rather than a forecast, but it is not the same as audited revenue.

Comparison with earlier periods

DroneShield says the FY2026 figure compares with $193.1 million of Committed Revenue for the same measure on 20 October 2025, and that FY2026 revenue is 121% of FY2025 revenue on this basis. For context, the company reported FY2025 revenue of $216.5 million, which included a $61.6 million order described as its largest on record, and $57.5 million in FY2024. First-half 2026 revenue was $125.8 million, compared with $72.3 million a year earlier, with Recurring Revenue of $11.5 million, or 9.2% of the total.

Committed revenue beyond the current year is smaller. The company reported $29 million committed for FY2027, which it expects to increase in the coming months, and $17 million for FY2028 and beyond.

Financial position and Business mix

The presentation repeats first-half figures that give a picture of the business. Gross Margin was 60.0%, against 65.3% in the prior corresponding period, and underlying EBITDA was a loss of $12.4 million before $15 million of individually significant items. Cash and term deposits were $180.0 million at 30 June 2026, with no debt, and inventory was $85 million. Research and Development spending was $40 million in the first half, following $70 million in FY2025.

By segment, 85% of first-half revenue came from military customers. By region, Europe and the United Kingdom contributed 52%, the United States 17% and Asia-Pacific 9%. DroneShield reported 4,200 active software-enabled devices as at 12 October 2026 and headcount of 519 at 30 September 2026.

Contingent items and risks

Some items highlighted in the presentation are not yet revenue. DroneShield refers to a United States indefinite-delivery, indefinite-quantity contract with a ceiling of US$500 million over three years, but states that it does not guarantee any orders and that amounts cannot be quantified at this time. It is also awaiting a decision, expected in the second half of 2026, on a European down-selection involving a consortium that includes Anduril and Nokia.

Other risks visible in the figures include the lower gross margin compared with the prior period, the underlying EBITDA loss for the half, and the concentration of sales in defence customers, where timing of orders and deliveries can vary. The company's FY2026 outlook remains a forecast and may not be achieved, and the FY2027 and later commitments are small relative to the current year, so future revenue will depend on new orders being won and delivered on schedule. The company also notes that it benchmarks to a blended gross margin of 65%, which the first-half result did not reach.

Upcoming milestones

DroneShield says first orders for its RfRecon product, received from a Tier 1 Western European military end-user, are on track for delivery with RfAI-3 software by the end of 2026. It launched Mission Ready Services on 1 October 2026, and Rebecca Lowde is due to start as chief financial officer on 2 November 2026. The financial year ends on 31 December 2026.