The DroneShield Ltd (ASX: DRO) share price jumped 5% in early trading following news of another US contract win.
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.
DroneShield’s US government win
The ASX share announced that it is seeing continued rapid increase in customer order flow, “substantially from repeat customers looking to step up the amount of counterdrone systems from a low or no existing base.”
DroneShield said it has received a package of three standalone contracts worth $7.6 million for handheld systems for delivery to the US government.
The company expects to deliver all equipment in the fourth quarter of 2025, with cash payments expected in the same quarter or the first quarter of 2026.
DroneShield noted that no additional material conditions need to be satisfied and there is no obligation for any additional contracts from this customer.
The business said it has previously received orders from this customer, including $5.7 million in May 2024 and $7.9 million in September 2025. Those repeat orders “strengthen DroneShield’s position as a trusted provider of mission-critical solutions to address the growing challenge of drone threats on the modern battlefield and the civilian sector.”
The company also said that it continues to execute on production expansion from $500 million annually to $2.4 billion by the end of 2026, including the start of European and US based assembly plants.
Management comments
The DroneShield CEO Oleg Vornik said:
In addition to the larger orders such as the $62 million European order received in June and fully delivered since, smaller frequent orders such as this one play an important role in ensuring the steady flow of the business, ongoing market fulfilment with our solutions, as well as building trust and laying ground for the larger orders in our sales pipeline. The pipeline includes multiple opportunities over $100 million each, including the largest $800 million opportunity, that the business is currently working on, with our customers.
For 2025 year to date, DroneShield has received 78 Purchase Orders with a median size order of approx. $400k. This compared to 66 orders for all of 2024, with the median order value of $200k – showing a diverse business continuing to grow across all metrics.
Moving forward, taking into account the substantial revenue growth of the business in 2025, the announcement threshold for received orders in 2026 will increase from the current $5 million (which was based on the $57 million of revenue in 2024) to $20 million, unless there is a further rationale to announce a received smaller order.
Final thoughts on the DroneShield share price
The company has fallen more than 40% in the last month, so it’s good to see it has some positive news to reveal to shareholders.
I don’t know how much its revenue and earnings will grow in the coming years, but it’s good to see the progress the business is making with customers.
There are other ASX growth shares that I’d rather look at which are easier to value.
