DroneShield Wins $5.2 Million European Military Contract for Handheld Anti-Drone Systems

Australian counter-drone solutions specialist DroneShield Limited (ASX: DRO) today announced that it has secured a US $5.2 million (7.6 million  Australian dollars)  follow-on contract, placed through an established in-country European reseller to deliver handheld counter-UAS systems and associated accessories to a European military customer.

According to the company’s announcement, all the hardware required for the contract is already on the shelf and ready for delivery. The payment is contractually a cash payment due in the fourth quarter of 2025. The contract is not subject to any additional material conditions.

Established Reseller Partnership, Strong Back-Catalogue

DroneShield noted that the reseller involved in this contract has been working with the company for three years. Over that period, excluding the newly announced order, the reseller has placed 12 contracts worth more than US $70 million.

While DroneShield did not disclose the identity of the reseller or the end-customer military force, it stated that it does not consider the identity of the counterparty or end user as information that would materially affect the value of its securities.

Strategic and Investor Communication Context

In its announcement, DroneShield reaffirmed that the disclosure provides “all material information relevant to assessing the impact of the contract on the price or value of the Company’s securities, and is not misleading by omission.”

The company also reminded markets that from 2026 onwards, its threshold for publicly announcing received orders will increase from US $5 million to US $20 million, unless there is a “clear rationale” for publicising a smaller order.

Why the Order Matters

This contract underscores several trends important for DroneShield and the broader counter-drone market:

• The fact that hardware is “already on the shelf” indicates readiness to fulfil without lengthy delays.

• With repeated orders through the same reseller, the end user appears to be moving from trial purchases to routine procurement.

• The deal reflects growing European demand for counter-UAS (C-UAS) technology, driven by rising drone threats and heightened defence budgets.

From a corporate perspective, the order strengthens revenue visibility for 4Q 2025 and underscores DroneShield’s long-term pipeline strength.

Market Reaction & Outlook

Following the announcement, DroneShield’s shares jumped 13–16% in early trade. The market responded positively to the clarity of the contract, immediate inventory availability, and the consistency of the reseller relationship.

Looking ahead, the order further expands DroneShield’s European footprint, reinforcing its position as a leading supplier of tactical, portable counter-drone systems.

Company Commentary & Closing

DroneShield confirmed that the contract represents a “follow-on contract for handheld counter-drone systems and associated accessories”, with no additional material conditions for delivery or payment.

The company emphasised transparency regarding payment terms, inventory status, and historical reseller engagement, offering investors a clear view of the contract’s significance.

The US $5.2 million contract is expected to be fully recognised in Q4 2025, providing a tangible revenue uplift. The company’s decision to raise its public-announcement threshold to US $20 million from 2026 further reflects confidence in scaling to larger contracts.

In summary, the deal represents a strategic win for DroneShield amid Europe’s accelerating demand for counter-drone capabilities—solidifying its role as a key player in the C-UAS market and reinforcing both short-term momentum and long-term credibility.