DroneShield Exhibits Strong 2026 Business Performance, Though Share Being Down 40% YTD

DroneShield announced major contract wins and provided a business update during June and July 2026. The announcements showed strong customer demand, higher committed revenue, improved sales outlook and continued investment in new counter-drone products and technology.

DroneShield Limited (ASX: DRO)

DroneShield Limited (ASX: DRO), on 28 July 2026, announced two contracts worth $23.2 million through reseller COBBS BELUX BV for a European military customer. The deal includes vehicle mounted counter-drone systems, hardware, subscriptions, warranties, services and some third-party equipment. Deliveries will take place during 2026. Around $21 million is expected to be included in FY2026 Committed Revenue with the remaining amount coming from future subscription revenue.

The company said Europe continues to be an important market and these contracts show ongoing demand for its technology. It also confirmed there is no commitment for additional orders from the reseller or the end customer. On the same day, DRO also launched RfAI-3, the third generation of its proprietary RF detection engine.

First Half 2026 Performance

DRO announced on 28 July 2026 a preliminary statement relating to its results for the six months ending 30 June 2026. The revenue is anticipated to be $125.8 million which represents an increase of 74% compared to the prior corresponding period.

Recurring income from software, subscriptions, and long-term services is anticipated to be $14.2 million representing 11.3% of the overall revenue. FY2026 committed revenue is $206M as on 28 July 2026. Committed Revenue for FY2027 and beyond was reported at $26 million across hardware, software, warranties and services. Gross margin is expected to be 60%, compared with 65% in the previous corresponding period. The lower margin was mainly due to higher sales of third-party products, currency movements and costs related to the new production facility and ERP system.

FY2026 Outlook

For FY2026, DRO has revised its forecast for revenues to fall within a range of $250 to $270 million indicating growth rates of 15 to 25% relative to FY2025. The orders that will be placed during the latter part of FY2026 are expected to be recognized in FY2027. It maintains its target for a consolidated gross margin of approximately 65 percent, driven by the expected release of next-generation products in the second half and higher subscription revenue. The business completed an organisational review after the leadership transition in April and identified areas needed for future growth. Investment continues in research and development, sales, systems, operations and working capital. The next generation product roadmap has started and is expected to contribute from 2027. Full 1H 2026 financial results are scheduled for release on 26 August 2026.

US Defense Contract

On 2 June 2026, DroneShield announced a $24.9 million contract supporting the US Department of War’s Joint Interagency Task Force 401, including an initial $19.3 million award and $5.6 million in optional work. The agreement covers mobile and fixed site counter-drone systems, subscriptions, warranties, services, and third-party solutions, with deliveries planned during 2026 and 2027. At least $10 million is expected to be recognised as FY2026 Committed Revenue with the balance in FY2027.

The contract reflects rising global demand for counter drone technology.  

(Source: Company Report)