DroneShield Limited (DRO:ASX), an Australian company that provides Artificial Intelligence-based platforms for protection against advanced threats such as drones and autonomous systems, has announced it has been awarded a contract worth $8.2 million. The contract is with an in-country reseller for delivery to a western military end-customer. The reseller is a wholly-owned subsidiary of a multi-billion dollar global, publicly listed entity responsible for distributing the products to the western military government department in-country.
The contract specifies the provision of handheld counter-drone systems, associated accessories and spare kits, and software updates. DroneShield has confirmed that the required hardware is currently available on-the-shelf. The company anticipates completing the delivery either before the end of 2025 or in early Q1 2026. Full cash payment is expected to be received in Q1 2026, and no additional material conditions are required to be satisfied.
Prior to this contract, DroneShield has received 38 contracts from this reseller over the past seven years, totaling over $9.6 million. However, the company clarified that there are no obligations for any additional contracts from this reseller or end-customer in the future. DroneShield also confirmed that the identity of the counterparty/customer is not considered information that would have a material effect on the price or value of DroneShield’s securities and that the announcement contains all relevant material information.
Looking ahead to 2026, DroneShield reports approximately $97.7 million in locked-in revenues, in addition to this recent contract. The hardware revenues from the new contract will fall into either 2025 or 2026, depending on the final delivery date. This represents an all-time record for the company at the start of a new year. The announcement was approved for release to the ASX by the Chairman on behalf of the Board.
