DroneShield bags $50 M contract, soars defying tech sell off
DroneShield is back in action after navigating through several hiccups last month and a sharp rally on Tuesday has renewed investor confidence driven by a major contract win.
DroneShield Limited (ASX: DRO)
DroneShield Limited on 16 December announced that it secured a $49.6 million contract to supply handheld counter-drone systems, accessories and software to a European military end customer which led to a sharp rise in the share price.
DroneShield holds a large portion of this inventory on the shelf and expects to complete all deliveries in Q1 2026 while cash payments are also expected to be fully received in Q1 2026 and over the past three years, the company has received 15 contracts from this reseller which amounts to more than $86.5 million.
The company has also secured a $25.3 million contract in Latin America which will be delivered and paid across Q4 2025 and Q1 2026.
In November, DroneShield reached a major internal milestone as 44.45 million performance options vested after the company exceeded $200 million in cash receipts within a rolling 12-month period.
The vesting of these options created temporary share price pressure as the market reacted to dilution concerns although the options were directly linked to commercial milestones.
DroneShield confirmed that the total number of new options issued will not exceed 1% of its issued share capital which limits the risk of significant dilution for shareholders in future.
The company recorded an exceptionally strong performance in 3Q25 with revenue of $92.9 million which represents a sharp increase from $7.8 million in the same quarter last year.
Cash receipts reached $77.4 million and operating cash flow was $20.1 million after being negative in the corresponding quarter last year.
The balance sheet is very strong with a cash balance of $235.2 million as of October and no debt which provides flexibility to invest in research, manufacturing expansion and global sales execution.
DroneShield is well positioned to continue building scale and credibility as a leading counter-drone and electronic warfare company which supports the creation of substantial long-term value for shareholders.
(Source: Company Announcements)
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