DroneShield Limited (ASX: DRO) is expanding rapidly with growth in its pipeline. It has achieved a pipeline worth $2.34 billion as of August 2025, underscoring scale and demand. The project pipeline has expanded to 310 active projects scheduled for 2025 and 2026, with a sharp increase of 182 per cent compared to the prior year, including 13 large deals worth $30 million and 52 deals with 45 million each. The portfolio is well diversified with most of the revenue generating from the USA, then Europe, and the Asia Pacific region.
Fueled by its strong operational performance, the company has delivered standout results this year. Revenue surged to $72.3 million, marking an increase of 210 per cent from the previous year, setting a new benchmark for the company. Profit after tax of $5.2 million, making this period as most profitable to date. Customer Cash receipts increased by 185 per cent from $21.3 million in 1H2024 to $60.7 million in 1H2025. Moreover, operating cash flow improved by $21.5 million. DRO is seeing a significant ongoing momentum, including $61.6 million of contracts in June 2025, the largest in the company’s history. The upcoming year will have a strong start with 442.1 million of revenue and $40.2 million of cash receipts only in the month of July and the first half of August.
The market outlook remains favourable with global defence spending being at an all-time high, crossing USD 2.8 trillion in 2024, driven by escalating geopolitical tensions and the rise of drone warfare. Drones are now being considered as critical elements of modern conflict. The US Department of Defence has USD 150 billion as additional defence spending, including USD 1.3 billion for C-UAS programs, while the European Union has deployed 800 billion euros under its ReArm program, prioritising counterdrone capabilities, highlighting scaling opportunities for the future. To capture this, DRO has laid out a well-structured growth plan. The years 2025 and 2026 will mark the launch of next-generation hardware across multiple product families and the targeting of the expansion of European and U.S. manufacturing hubs. By 2027 to 2028, the company is aiming to grow its pipeline by 100 per cent to USD 5 billion underpinned by the deployment of AI software to all hardware and SaaS subscriptions. While making the revenue stable in 2029, DRO is transitioning most of its revenue from SaaS long-term counterdrone contracts and EW contracts. The journey from stability to leadership is already in motion, and the company is well-positioned to transform today’s momentum into tomorrow’s market dominance.
(Source: Company Announcement)
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