DroneShield Ltd. delivered a powerful operational update this Wednesday, marked by a tripling of annual revenue and the announcement of a key strategic partnership with Australia’s Department of Defence. This performance appears to signal a concerted effort to rebuild investor confidence following last year’s turbulence caused by insider share sales.
Strategic Defense Agreement and Financial Milestones
Alongside its financial results, the counter-drone technology specialist revealed a three-year research agreement with the Australian Defence Science and Technology Group. This collaboration facilitates the exchange of technical information and access to testing facilities for developing new defense systems. It follows the company’s inclusion in a significant government advisory panel this past January.
The financial figures for FY 2025 robustly underscore the firm’s growth trajectory. Revenue soared by 276% year-over-year to A$216.5 million. Profitability metrics were equally impressive: net profit climbed 367% to A$3.5 million, while the adjusted result before tax skyrocketed by over 1,600% to A$33.3 million.
Robust Balance Sheet and SaaS Growth
DroneShield’s balance sheet remains strong, showing no debt and holding cash and deposits totaling A$210 million. A notable highlight is the expansion of its Software-as-a-Service (SaaS) segment, which surged 312% to A$11.6 million. This growth supports the medium-term objective of increasing software’s contribution to total revenue to 30%.
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Market reaction was positive, with the equity advancing 9.11% on the day to trade at €2.02.
Expanded Order Pipeline and Production Plans
Looking forward, the company’s unweighted sales pipeline has expanded dramatically, growing 92% over twelve months to A$2.3 billion. To meet this anticipated demand, DroneShield has outlined ambitious plans for a massive production capacity increase. Through new facilities in Australia, the United States, and Europe, the company aims to boost its annual manufacturing volume from the current A$500 million to A$2.4 billion by the end of 2026.
Strengthened Governance Rules
In a move to address prior corporate governance concerns, DroneShield has implemented stricter trading policies for its leadership. This update comes after share sales by executives worth approximately A$70 million in November 2025 unsettled investors. The new policy now requires board approval before directors can dispose of significant equity holdings. Chief Executive Oleg Vornik described the change as part of the company’s maturation process to prevent similar governance issues in the future.
Outlook for FY 2026
DroneShield enters the 2026 financial year with a record order backlog of A$95.9 million in firm contracted revenue, representing the strongest yearly start in its history. This growth is further bolstered by regulatory tailwinds, including the “Safer Skies Act” in the United States and expanded authorities for counter-drone operations in Australia. The critical factor for the share price’s future trajectory will now be the company’s execution efficiency in scaling its production to convert the substantial pipeline into realized sales.
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