DroneShield lands AUD $14.4m boost from defence deals

DroneShield, the Australian counter-drone specialist, has secured two new military contracts worth a combined A$14.4 million (£7.5m) with defence customers in the Western and Asia-Pacific markets.

The company said the latest awards bolster its contracted revenue base as it enters 2026, following a period of sustained order growth from repeat military buyers.

The larger of the two new deals is an AUD $8.2 million order linked to a Western military end-customer. The second is a AUD $6.2 million contract related to a major military government department in the Asia-Pacific region.

Western military sale

The Western contract is being facilitated through an in-country reseller - a wholly owned subsidiary of a global, publicly listed group. The reseller will deliver the equipment to a Western military government department in its home country.

DroneShield is set to supply handheld counter-drone systems, alongside accessories, spare kits, and software updates. Because the company already holds the required hardware in inventory, it expects to complete delivery by early 2026 at the latest, with cash payment anticipated in first quarter of  2026.

DroneShield said no additional material conditions apply to the contract.

The deal extends a long-running relationship with the same reseller. Over the past seven years, before this latest award, DroneShield received 38 contracts from the customer worth more than AUD $9.6 million in total.

The company said neither the reseller nor the end customer holds any obligation to place further orders in future.

Asia Pacific software deal

The separate AUD $6.2 million contract is with an in-country reseller in an Asia Pacific nation. The reseller is also a wholly owned subsidiary of a multi-billion dollar, global, publicly listed group.

The Asia Pacific reseller is contractually required to distribute solutions to a major military government department in the region.

This package includes third-party hardware designed to be interoperable with DroneSentry-C2, DroneShield's proprietary command-and-control software platform. Delivery and payment for this contract are both scheduled for 2026. The company said no additional material conditions apply.

DroneShield has a strong track record with this reseller, having received 14 standalone contracts worth over A$48 million in the last two years alone. The company said there is no obligation for any further orders.

Record revenue backlog

These new deals contribute to an all-time record backlog for the firm. DroneShield confirmed it has approximately AUD $97.7 million in locked-in revenues.  This figure excludes the newly announced Western military contract, because the company has not yet finalised whether revenue from that hardware will fall into 2025 or 2026.

The additional AUD $8.2 million contract value will sit across either 2025 or 2026 depending on the final delivery date.

The company described the current contracted revenue level as an all-time record at the start of a new year.

DroneShield develops and supplies systems that detect and counter unmanned aerial vehicles. Its portfolio includes handheld devices, fixed and mobile sensors, and software platforms such as DroneSentry-C2.

The new contracts follow a string of repeat orders from government and military buyers. Western and Asia Pacific militaries have been expanding use of counter-drone tools in response to a rising number of uncrewed systems in conflict zones and sensitive areas.

The latest orders reinforce DroneShield's role as a supplier of counter-drone systems through major defence resellers. Both resellers are subsidiaries of large, publicly traded groups that act as distributors to their respective national defence departments.

Management has framed the expanding backlog as a foundation for further growth, noting that the ability to fulfill orders from existing "on-the-shelf" inventory significantly supports the company's planned delivery and payment schedules. The company expects delivery and revenue recognition on the new work to run through 2025 and 2026.