The DroneShield Ltd (ASX: DRO) share price jumped 4% after the company gave a contract update regarding the US.
DroneShield says it provides AI-based platforms for protection against advanced threats such as drones and autonomous systems. Its customers include military, intelligence community, government, law enforcement, critical infrastructure and airports.
The company’s handheld solutions are part of its wider counter-drone portfolio which spans dismounted, vehicle-mounted and fixed-site solutions that “fuse multiple sensors and effectors integrated” through its software. It enables operators to detect, track, identify and defeat hostile drones.
2 new contracts
The business announced it has now sold more than 4,000 systems worldwide with the receipt of a package of two standalone contracts totalling $7.9 million for handheld systems for the US Department of Defense.
DroneShield expects to deliver all equipment in the fourth quarter of 2025, with the cash payment also expected in the fourth quarter of 2025.
The company noted no additional market conditions need to be satisfied and there is no obligation for any additional contracts from this customer.
DroneShield said it has previously received standalone orders from the customer and the repeat orders strengthen its position is a “trusted provider of mission-critical solutions to address the growing challenge of drone threats on the modern battlefield and the civilian sector.”
The latest orders build on existing Department of Defense programs already deploying DroneShield systems.
The entire order is expected to be fulfilled within 30 days from existing stock. DroneShield said this is important for this and other DroneShield customers due to their “urgent operational requirements, and this is an important factor of securing more orders.”
Quarterly update
The company also announced that 2025 third quarter revenue to date is currently standing at $77 million, with significant additional deliveries and further revenue expected before the end of September).
This growing revenue is already more than the previous record quarters combined.
The DroneShield CEO Oleg Vornik said:
As our customers seek to step up from their early small-scale evaluation purchases into full scale procurement, we are seeing rapidly rising customer demand. Counterdrone is still at its nascency with our customers requiring very significant additional purchases to progress to the required levels of counterdrone defence. DroneShield is a well regarded industry leader globally, and we expect to continue to benefit from this rising demand.
The company is certainly growing at an incredibly fast pace, but it’s challenging to say what an appealing Droneshield share price is because of the unknown of how large the company could become.
It’s doing incredibly well, but there are other ASX growth shares I’d rather buy because the growth outlooks are clearer to me.
