The DroneShield Ltd (ASX: DRO) share price is up around 5% after announcing an AI update.
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.
Droneshield AI software update
The company said its systems can now detect and respond to drones faster, more accurately and across a wider range of threats, making them even more effective. It also said the changes enable broader deployment across allied defence networks through support for the widely adopted SAPIENT protocol.
The ASX share explained that breakthrough drone disruption techniques, expanded AI detection and new interoperability features highlight its continued expansion as “the end-to-end counter-drone solutions provider”.
Droneshield also noted the launch of an emitter-based disruption engine powered by RFAI-ATK, with the largest expansion of Droneshield’s RFAI-2 detection and tracking database.
Additionally, DroneSentry-X Mk2 now delivers doubled processing power for faster performance, with SAPIENT protocol integration supported across all sensors. This enables more precise targeting of hostile drones.
The company said this release is a part of the strategy to substantially grow software as a service (SaaS) revenue over the next five years.
Management comments
Oleg Vornik, Chief Executive Officer of DroneShield, said:
This release reflects DroneShield’s ongoing growth as the world’s most trusted end-to-end counter-drone provider.
In an era where drones are increasingly used to disrupt civil society and democracies, staying ahead of the threat is essential. Our vision is to see tens of thousands of devices deployed globally with end users receiving regular SaaS software updates that continuously strengthen their ability to detect, track, and neutralise emerging threats. RFAI-ATK joins our existing RFAI and C2 product families as another stream of intelligent updates, ensuring our customers are equipped with world-leading technology to stay ahead of today’s urgent challenges and tomorrow’s evolving threats.
Angus Bean, Chief Product & Technology Officer of DroneShield, said:
That is why we began building what we believe is now the world’s largest proprietary drone signal database, which continues to grow every day. This foundation underpins our RFAI, RFAI-ATK, and SFAI product families, ensuring our customers benefit from continuous improvements delivered through regular software updates.
Final thoughts on the Droneshield share price
It’s pleasing to see that the business is advancing its offering for customers and that it’s delivering significant growth. However, it’s challenging to know how much its revenue can grow and therefore difficult to judge if today’s valuation is fair, undervalued or overvalued.
I hope it does well, but there are other ASX shares that look like more appealing buys to me.
