The DroneShield Ltd (ASX: DRO) share price is up 12% after the company announced another European contract win.
DroneShield says it provides Artificial Intelligence (AI) based platforms for protection against advanced threats such as drones and autonomous systems. It offers counter-drone (or counter-UAS) and electronic warfare solutions and off-the-shelf products designed for land-based, sea-based or airborne platforms. Customers include military, intelligence community, Government, law enforcement, critical infrastructure and airports.
Europe contract win
The company announced that it has received a follow-on contract for $5.2 million from an in-country European reseller which is contractually required to distribute the products to a European military customer.
This contract is for handheld counter-drone systems and associated accessories.
DroneShield says it has all stock available to deliver this order and will receive the cash for this order in the fourth quarter of 2025. No other additional important conditions need to be satisfied.
The company reassured the market by saying the reseller is a vetted purchaser that DroneShield has worked with for three years. Over the three years, DroneShield has received 12 contracts from this reseller worth a total of more than $70 million.
Relevant information released
The company said it doesn’t think the identity of the customer is information that a reasonable person would expect to have a material effect on the price or value of DroneShield’s shares.
It also said the announcement contains all the information relevant to assessing the impact of the contract on the price or value of DroneShield’s shares and “is not misleading by omission”.
DroneShield also re-iterated that the announcement threshold for received orders in 2026 will increase from the current $5 million (which was based on revenue of $57 million in 2024) to $20 million, unless there are further reasons to announce a smaller order.
Final thoughts on the DroneShield share price
The company has been through a rough time in the last month, with the share price falling by more than 50%.
The DroneShield share price may have gotten too far ahead of itself before, but now the main thing it can do to regain confidence is continue delivering growth of its financials, such as winning more contracts and delivering profits and positive cashflow.
It’s a lot cheaper than it was in October, but it’s not one of the ASX growth shares I’m looking to buy for my own portfolio.
