The DroneShield Ltd (ASX: DRO) share price has jumped 10% following the Middle East events.
DroneShield designs and manufactures anti-drone equipment and technology to defend people, vehicles, buildings and infrastructure from drones.
DroneShield share price soars
The business has jumped 10% following the US and Israel attack on Iran.
Not only that, but fellow ASX defence share Electro Optic Systems Holdings Ltd (ASX: EOS) announced that throughout 2025 EOS has been in negotiations with several Middle Eastern governments provide advanced systems for air defence, including counter-drone systems.
EOS said that it expects that the current ongoing military conflict could accelerate those opportunities, though there’s no guarantee that any additional orders will be secured.
This could also mean that DroneShield may be able to secure additional orders for anti-drone equipment.
February 2026 performance
Aside from the Middle East conflict, February was a strong month for the business as it continues to experience significant demand.
The company had a positive February 2026, with the DroneShield share price climbing 9%.
It announced both a strong FY25 result and a pleasing contract win.
FY25 saw the business report $216.5 million of revenue, up 276% year on year. It also announced an underlying profit before tax of $33.3 million and positive operating cashflow of $15.9 million.
To keep up with all of the demand, DroneShield is investing in a new 3,000sqm production facility in Sydney, which is a substantial upgrade from the 400sqm floorspace of the previous production facility.
It’s also bringing online European and US manufacturing capabilities, further expanding its production potential and will help it deliver on its growth plans.
At the end of February, DroneShield also announced a further $21.7 million of Western military contracts, for the supply of dismounted counter-drone systems, spare kits and software subscriptions. All of those items are available from existing inventory. Delivery is expected for this quarter, with payment expected in the second quarter.
Final thoughts on the DroneShield share price
I can see why investors have sent DroneShield higher today, though I’m not sure if it’s an appealing buy today because of how much it has already risen in recent times.
There could be other ASX growth shares that are more appealing.
