The DroneShield Ltd (ASX: DRO) share price is up by 8% after revealing its latest contract win.
DroneShield produces equipment that protects against potential drone attacks that are targeting people or important assets.
Another contract win
DroneShield announced that it has received a package of six standalone contracts for $21.7 million from an in-country reseller for delivery to a western military end-customer.
The company said that the contracts are for the supply of dismounted counter-drone systems, spare kits, and software subscriptions.
All of those items are reportedly available from its existing inventory and delivery is expected in the first quarter of 2026, with payment expected in the second quarter.
DroneShield said that the reseller is a subsidiary of a multi-billion dollar, global, publicly-listed company that is required to distribute the products to the Western military end-customer.
In the last seven years before this contract, the business has received 39 contracts from this reseller for more than $17.8 million.
There are no obligations for any additional contracts from this reseller or the end-customer.
The company also said that it doesn’t think the identity of the customer would be information that would have a noticeable impact on the DroneShield share price. But, the company has announced all of the important information.
Is the DroneShield share price a buy?
Investors certainly seem to think so, sending the share price up a lot.
The business reported a lot of growth in the FY26 half-year result, with revenue growth of 276% to $216.5 million and net profit after tax (NPAT) growth of 367% to $3.5 million.
In that result, released earlier this week, the business said that it had a sales pipeline of $2.3 billion of almost 300 opportunities (92% higher year on year). This is seemingly one of those possible deals that has turned into a contract that can be reported.
DroneShield also said that it has invested in strong capability growth as the global team increased from 250 to more than 450 staff, including more than 350 hardware and software engineers.
The company noted that it is scaling its manufacturing capacity from $500 million per year in 2025 to $2.4 billion per year by the end of 2026 through new facilities in Australia, the US and Europe.
DroneShield noted that governments around the world continue to increase military budgets, particularly in the area of counter-drone solutions. This bodes well for future growth of demand and could suggest the DroneShield share price has a useful tailwind for the foreseeable future.
It’s not one of the ASX growth shares I’m looking to buy, but I’d be very happy as a shareholder.
