The DroneShield Ltd (ASX: DRO) share price is up 4% after announcing a big profit increase in the FY25 result.
DroneShield is a company that produces equipment to protect people, vehicles, buildings and infrastructure from drones.
Droneshield FY25 result
Here are some of the main financial highlights from the report for the 12 months to December 2025.
- Revenue jumped 276% to $216.5 million
- Software as a service (SaaS) revenue grew 312% to $11.6 million
- Underlying profit before tax rose 1,686% to $33.3 million
- Net profit after tax (NPAT) grew 367% to $3.5 million
What happened?
The business noted that while the Ukraine war has recently entered its fifth year, and there are expectations of continued sales to Ukraine in 2026, the vast majority of sales are not directly related to this location. Its sales have a particular focus on the United States, Western Europe, Asia-Pacific (excluding China) and South America.
Droneshield announced a number of positive contract wins during the period and it reported it has a sales pipeline of up to $2.3 billion across different geographies, customers, products and stages of maturity. So, not all of these are guaranteed to turn into signed contracts.
The company said that in 2026 to date, it has committed revenue of $104 million. So, two months into the year and it has already almost reached half of its FY25 revenue.
Droneshield also said that it’s expanding its manufacturing capacity towards $2.4 billion of annual capacity by the end of 2026. A new 3,000sqm production facility in Sydney is a highlight, being a substantial increase from the previous 400sqm facility.
The company also noted that it has target revenue of $1 billion per year from 2030 onwards, with a significant portion of that coming from SaaS, as well as a significant portion expected to come from customers revamping hardware purchased three to five years earlier.
Over the next year or two, the business aims to establish manufacturing hubs in both the US and Europe.
Is the DroneShield share price a buy?
The business has big plans and the financials are showing a lot of progress. It’s justifying an increase in its underlying value and management are clearly expecting revenue and production to increase in the coming years.
Without a crystal ball, it’s very hard to say if this is a good time to buy or not. But, I do think it’s doing the work to impress the naysayers. But, it’s not one of the ASX growth shares I’m looking to add to my own portfolio, partly because I can’t personally tell how strong its economic moat is.
