The DroneShield Ltd (ASX: DRO) share price is under the spotlight after the company announced European manufacturing news.
DroneShield designs and manufactures anti-drone technology that protects people, vehicles and infrastructure from aerial threats.
European manufacturing established
DroneShield announced in a statement on its website that it had established counter-UAS (drone) manufacturing in the EU, which is a milestone in the company’s European footprint and manufacturing capacity.
The ASX share highlighted this is part of momentum across the continent as national military investments are growing under the ReArm Europe Plan / Readiness 2030 initiative.
Production of European-made counter-UAS systems has started under a collaboration with an experienced and established manufacturer. Delivery is scheduled for mid-2026.
DroneShield said that the contract manufacturer will carry out full turnkey assembly and component manufacturing, including PCB assembly, precision machining, cable and wire harness assembly, and associated assembly and testing labour.
The company said that DroneShield has established and will continue to grow a primarily EU-based supply chain, making this the company’s only production line currently outside of Australia.
Why is this a helpful move?
The ASX share said that its European manufacturing footprint position the business more competitively for EU procurement opportunities, which increasingly prioritises sovereign capability, regional production, and resilient supply chains, ensuring DroneShield can meet these expectations while “delivering at scale and with reduced lead times”.
This is part of the company’s plan to grow the company’s combined total annual production capacity from approximately $500 million in 2025 to an expected $2.4 billion by the end of 2026.
DroneShield then said that the uplift of production supports rising operational demand across Europe and “reinforces DroneShield’s commitment to strengthening industrial bases and diversifying global supply chains, as militaries, law enforcement and critical infrastructure operators expand and modernise counter-UAS capabilities.”
Management commentary
The DroneShield CEO Oleg Vornik said:
Europe is undergoing a profound shift in counter-UAS preparedness. By establishing dedicated manufacturing in the EU, DroneShield is contributing to Europe’s sovereign capability while continuing to deliver rapidly and reliably for our European customers. The ReArm Europe Plan / Readiness 2030 initiative has highlighted the importance of localised, scalable production, and this new production line positions us to meet that demand.
Final thoughts on the DroneShield share price
The business has risen 33% in the past six months, which is impressive considering all of the volatility it has gone through.
It’s very difficult to say whether this business is good value or not. It’s clearly winning contracts and making profit now. It depends on how many contracts it wins in the coming months and years. I’m not sure it’s one of the best buys in the ASX growth shares space right now – there are other ideas I’d rather look at first.
