The DroneShield Ltd (ASX: DRO) share price is in the spotlight after announcing a $25 million contract with a Latin American customer.
DroneShield says it provides AI-based platforms for protection against advanced threats such as drones and autonomous systems. Customers include military, intelligence community, government, law enforcement, critical infrastructure and airports.
It provides customers with counterdrone (and other unmanned ariel systems), electronic warfare solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms.
Latest contract win
The company announced a $25.3 million contract from a privately owned in-country reseller that is contractually required to distribute the products to a government defence end-customer in a Latin American country.
The ASX share expects to deliver all equipment throughout the fourth quarter of 2025 and the first quarter of 2026, with cash payments expected in the fourth quarter of 2025 and the first quarter of 2026. No other notable conditions need to be satisfied, according to the company.
DroneShield noted that it has previously received seven standalone orders from this reseller between March 2019 and July 2025, totalling approximately $2.9 million.
The company noted it doesn’t think the identity of the customer would be information that would have a material effect on the DroneShield share price or its valuation.
Management comments
The DroneShield CEO Oleg Vornik said:
With this new contract, DroneShield continues to position itself as one of the preferred C-UAS systems in Latin America. As demand continues to evolve, DroneShield is ready to meet the requirements from a region where drones play a key role in the modern warfare.
Final thoughts on the DroneShield share price
Before today’s trading, the Droneshield share price had dropped by more than 40% in less than a month.
Even at the current valuation, there is a lot of expected success priced into the valuation. To justify the price, it needs to grow its revenue and net profit, so announcements like this are good to see.
It’s hard to know how high Droneshield’s net profit can grow and how long it will sustain at that level, so I’m happy to leave this fast-growing business to other investors.
For now, there are other ASX growth shares I’d rather focus on for my own portfolio.
