Droneshield (ASX:DRO) share price sinks 5% amid DroneSentry-C2 Enterprise launch

The DroneShield Ltd (ASX:DRO) share price is down more than 5% after announcing its latest product update.

The DroneShield Ltd (ASX: DRO) share price is down more than 5% after announcing its latest product update.

DroneShield provides AI-based platforms for protection against advanced threats such as drones and autonomous systems. Its solutions are designed to suit a variety of ground, maritime or airborne platforms. Its customers include military, intelligence community, government, government, law enforcement, critical infrastructure and airports.

DroneSentry-C2 Enterprise

The company announced to the ASX that it has launched DroneSentry-C2 Enterprise (C2E), which is a new software platform designed to provide strategic-level command and control for large-scale and distributed counter-drone operations.

The idea is that C2E connects multiple DroneSentry-C2 solutions across geographically dispersed sites, such as military installations, airports, energy infrastructure and data centres into one operational network. Customers can shift from global oversight to granular control in one click.

By consolidating multi-site operations, DroneShield claims C2E enables faster decision-making, improved coordination and enhanced resilience across national-level security networks.

It also announced the first flagship deployment of the platform, in a critical eastern NATO flank area. The company received its first C2E order with a European multi-site customer, to be deployed over an existing and growing cluster of its DroneSentry solutions in that area in early 2026, marking an important step in scaling counter-drone operations to meet the demands of the military industrial base and national security stakeholders.

Management comments

The Droneshield CEO Oleg Vornik said:

As the drone technology continues to evolve, there is an increasing focus on software, starting at the embedded level (optimising each device’s ability to track and defeat drones), site level (sensor fusion across different sensor types, and target handover), and enterprise level (multi-site threat awareness). C2E represents the last part of this software strategy. Together, the 3 layers will provided maximum value to its customers and assist driving to DroneShield’s goal of getting to 30-40% of its revenue from SaaS over the medium term.

Angus Bean, the chief technology and product officer of Droneshield, said:

C2E addresses the realities of modern airspace security. Governments and infrastructure operators must manage counter-drone operations across many distributed sites. By shifting from isolated sites to enterprise-scale command, C2E provides a SaaS-enabled solution designed for these complex, national-level environments.

Final thoughts on the Droneshield share price

The company is clearly a success story, delivering a lot of growth and updates for customers and shareholders alike.

Considering the Droneshield share price is up more than 600% in 2025 alone, it’s not surprising some investors may be taking profit off the table this week.

Can it continue rising from here? Perhaps, over the long-term. If it continues winning contracts, there’s a very good outlook, though we shouldn’t expect the Russian-Ukraine war to continue forever and be a tailwind for the business.

Despite its decline, there are other ASX growth shares I’d rather buy where there’s more visibility about the valuation.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.

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