The DroneShield Ltd (ASX: DRO) share price has risen more than 3% after announcing a new US contract.
DroneShield is a business that designs and manufactures anti-drone equipment and capabilities. Its technology can be used to protect people, places and assets. Customers include military, government, law enforcement, critical infrastructure and commercial.
US Joint Interagency Task Force 401 contract
The ASX share announced that it has received a $24.9 million contract supporting the mission of the US Department of War’s Joint Interagency Task Force 401 (JIATF-401).
The JIATF-401 is the US Department of War’s ‘premier organisation’ to synchronise C-UAS efforts the Joint Force, helping allies and partners rapidly acquire high-quality capabilities to respond to the evolving threat of drones.
DroneShield said the contract has an initial value of $19.3 million, with an additional $5.6 million in options for the end-user over a 5-year period.
This contract will supply mobile and fixed-site counter-drone solutions, including hardware, subscriptions, warranties and services. DroneShield noted the hardware from existing planned production, with a series of deliveries in 2026 and 2027.
Of the contract’s initial value of $19.3 million, at least $10 million is anticipated to be committed revenue for FY26, with the rest to be recognised in FY27.
Management comments
The DroneShield CEO Angus Bean said:
This contract demonstrates the growing requirement for counter-drone capabilities across complex operational environments. Customers are increasingly seeking solutions that combine rapid deployment with persistent airspace security, and DroneShield is well positioned to support these requirements through its range of mobile and fixed-site systems.
The award builds on DroneShield’s continued momentum in the US market and reinforces the Company’s role in supporting organisations tasked with protecting personnel, assets, infrastructure, and operations against emerging aerial threats.
Outlook for the DroneShield share price
The company said it continues to experience strong demand across military, government and critical infrastructure sectors globally, supported by increasing awareness of drone threats and the need to scalable counter-drone capability.
It’s pleasing for the business that it continues winning new customers, particularly ones related to the US because of how large of a customer it could be.
I’m not sure if it’s good value today because of how volatile the business has been over the past year. Can it continue winning a lot of new contracts or will the pace slow? It’s hard to say, so it’s not one of the ASX growth shares I’d choose to buy today.
