DroneShield Soars on Record $61.6m European Defence Contract

ASX-listed counter-drone technology specialist DroneShield (ASX: DRO) has hit a new altitude, announcing its largest-ever contract—three bundled deals worth a total of $61.6 million with a European military customer. The contracts, which eclipse the company’s entire 2024 revenue of $57.5 million, mark a watershed moment for the Sydney-based defence tech firm.

The package, signed via DroneShield’s in-country European reseller, covers handheld detection and counter-UAS systems along with related accessories. Delivery is expected in Q3 2025, with cash receipts scheduled across Q3 and Q4. No additional milestones or contingencies are attached to the agreement, underscoring its immediate commercial impact.

CEO Oleg Vornik was characteristically upbeat, noting the deal reflects the maturing market for counterdrone systems. “The scale and frequency of orders has been increasing as leading Military customers are moving from testing hardware to broader rollouts. DroneShield is well placed to meet the increasing demand,” he said.

The agreement follows an earlier $32.2 million repeat order in April from another military client, signalling a rapid escalation in operational scale. Crucially, the company says it’s operationally ready to meet the challenge. Recent investments in production capacity and inventory now allow DroneShield to deliver this latest order in full within a single quarter—an operational milestone as significant as the deal itself.

While the identity of the end-customer remains confidential, DroneShield has clarified that its reseller has a track record of delivering contracts on time and to spec, having progressed from unit-level evaluations to multimillion-dollar orders over the past two years. A prior $0.5 million contract with this same European customer was executed just last year.

The context couldn’t be more timely. As geopolitical tensions sharpen across Europe and the Middle East, demand for agile, electronic warfare-capable systems like DroneShield’s has surged. The company’s proprietary technology—anchored in AI-powered threat detection—addresses a growing spectrum of threats from commercial drones to military-grade UAS platforms.

For investors, the announcement not only delivers revenue certainty for the back half of CY2025, but adds credibility to DroneShield’s positioning as a go-to solution in the increasingly crowded counterdrone market. With an expanding customer base, accelerating order cadence, and scale-up-ready operations, the business looks to be entering a commercially mature phase.

DroneShield’s share price has already seen considerable momentum in 2025 on the back of growing defence budgets and rising interest in its modular counter-UAS platforms. With this landmark deal now locked in, the runway for further institutional contracts—and possibly new market entries—appears to be well cleared for take-off.