The DroneShield Ltd (ASX: DRO) share price has jumped 16% after the company announced pleasing contract wins.
Droneshield provides AI-based platforms for protection against threats such as drones and autonomous systems. It does this through counter-drone and electronic warfare solutions and ‘off-the-shelf’ products designed to suit a variety of terrestrial, maritime or airborne platforms.
Customers include the military, the intelligence community, the government, law enforcement, critical infrastructure and airports.
Asia Pacific contract wins
Droneshield announced that it has received a package of five separate contracts totalling $32.2 million from an in-country reseller for delivery to a military end customer in an Asian Pacific country. This has been a real boost for the Droneshield share price.
The reseller is a wholly-owned subsidiary of a multi-billion dollar, global, publicly-listed customer that is contractually required to distribute the products to a major Asia Pacific military government department.
The systems are for both vehicle-mounted and fixed counter-drone systems.
Droneshield expects to deliver all equipment and receive payment in the second and third quarters of 2025.
The ASX share said it has previously received seven standalone contracts from this reseller for this customer between May 2024 and January 2025, totaling approximately $12.3 million.
Droneshield didn’t say who the customer was because it did not consider the identity of the customer to be information that a reasonable person would expect to have a material effect on the Droneshield share price.
Management comments
The Droneshield Oleg Vornik said:
In close succession to the earlier order announced on 29 January 2025 from this sophisticated customer and a close military ally of Australia in the Asia Pacific region, Droneshield products are again meeting the challenge set by them. The scale and frequency of orders has been increasing as leading counter-drone customers are moving from testing hardware to broader rollouts. Droneshield is rapidly expanding all aspects of the business to meet this demand across multiple regions.
Final thoughts on the Droneshield share price
It’s still significantly lower than where it was last year, but its revenue is in a good place with these contract wins.
I don’t know if this is a good price, but it’s good to see an ASX share attracting investor attention.
