The DroneShield Ltd (ASX: DRO) share price has gone bananas, it’s up 30% after an exciting announcement by the company.
This company describes its activities as artificial intelligence-based platforms for protection against “advanced threats such as drones and autonomus systems.” It says that it offers customers counter-drone (or counter-UAS) and electric warfare solutions and the off-the-shelf products designed to suit a terrestrial, maritime or airborne platforms.
With a company offering services like that, I’m sure you can guess there’s one particular client it would love to do a lot of business with.
US government contract win
DroneShield announced today that it has won a record $33 million order from a US government agency, which includes DroneShield equipment and multi-year services.
The company expects to receive full payment of the order before the end of 2023 and expects this year to be another record year “by a wide margin” after a record year in 2022.
This order follows a $9.9 million order announced earlier in July, from another customer among the ‘five eyes’ community (Australia, Canada, New Zealand, the United Kingdom and the United States).
The ASX share said that its current order backlog (being committed orders in the process of fulfilment) is now $62 million, with a current pipeline of more than $200 million across 80 ‘opportunities’.
Management commentary
The DroneShield CEO Matt McCrann said:
We’re honoured to receive this award and support this customer. This award is a result of their trust in DroneShield and our solutions, and reflects our commitment to their mission.
We’re proud of our team’s efforts, the increasing value we’ve delivered to our customers worldwide, and are excited about continuing to support and grow the business as we look towards 2024 and beyond.
Final thoughts on the DroneShield share price
The company has soared since 23 June 2023, so it’s definitely not as cheap as it was.
It’s good to see that the company is getting more business from the US government. I can’t say how successful the company is going to be in the future, but it’s a great sign that it keeps winning bigger contracts. That’s a strong signal for future profitability. I’m not sure if today is a good time to invest though after the huge jump.
