The Australian counter-drone technology firm DroneShield has released annual results that surpassed even the most optimistic market forecasts. The company’s shares registered significant gains following the announcement, which highlighted a dramatic revenue explosion, a landmark shift to profitability, and a record-breaking order pipeline.
Financial Performance: A Year of Transformation
For the 2025 fiscal year, DroneShield reported revenue of AUD 216.5 million. This figure represents a staggering 276% increase compared to the previous year. More importantly, the company achieved sustainable profitability for the first time, with net income reaching AUD 3.5 million—a surge of 367%. The most impressive leap was seen in earnings before interest and tax (EBIT), which skyrocketed by 1,686% to AUD 33.3 million.
The company’s EBITDA turned positive, recording a profit of AUD 4.5 million versus a loss of AUD 8.6 million in the prior year. A consistent trend of positive operational cash flow over three consecutive quarters further underscores this financial turnaround.
Strategic Shift and Operational Expansion
A key growth driver has been the Software-as-a-Service (SaaS) division. Recurring software revenue climbed 312% to AUD 11.6 million. Management has set a strategic goal to grow the SaaS segment to 30% of total revenue within five years, aiming to build predictable income streams alongside its core hardware business.
To meet soaring demand, DroneShield is executing a major capacity expansion. Its order pipeline has swollen by 92% in twelve months to AUD 2.3 billion, spread across nearly 300 projects. Annual production capacity is being scaled up from AUD 500 million in 2025 to a planned AUD 2.4 billion by the end of 2026, supported by new manufacturing facilities in Australia, the United States, and Europe. The workforce has nearly doubled, growing from 250 to over 450 employees, including more than 350 engineers.
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For the current 2026 fiscal year, the company already has secured orders worth AUD 104 million on its books, of which AUD 22 million was recognized at the reporting date. Within the SaaS segment, AUD 22 million is secured, with AUD 2 million already recognized.
Governance and Regulatory Tailwinds
The report addressed previous market concerns regarding insider sales totaling AUD 70 million in November 2025, which had put downward pressure on the share price. CEO Oleg Vornik emphasized that those transactions did not reflect his view of the company’s prospects. In response, the Board of Directors has implemented a new “front-page test” governance policy designed to prevent similar incidents.
The business is also benefiting from supportive regulatory developments globally. In the U.S., frameworks like JITAF401 and a dedicated contracting vehicle have created a market pipeline exceeding AUD 1.5 billion. Proposed legislation such as the “Safer Skies Act” and new Australian regulations on countermeasures against unmanned systems are expected to open further opportunities. The company’s market position was reinforced by its inclusion in the S&P/ASX 200 index in September 2025.
DroneShield enters its expansion phase from a position of financial strength, holding AUD 210 million in cash and term deposits with zero debt. With a substantial secured order book and a burgeoning pipeline, the company appears poised to maintain its rapid growth trajectory through 2026.
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