DroneShield secures $61.6m drone detection system order from European military customer

DroneShield (ASX: DRO) has received three separate orders for handheld detection and counter-drone systems totalling $61.6 million from a private European reseller on behalf of an undisclosed European military customer.

The total value equates to the biggest single order in DroneShield’s history and eclipses the company’s entire $57.5m revenue in 2024.

DroneShield’s recent production levels and expanded inventory holding mean the company will be able to fully deliver the order within the quarter, with cash payment due before year end.

Increased orders

The reseller involved has progressively increased the size and value of its DroneShield orders over the past two years, starting with single evaluation units and moving up to multi-million dollar products.

The reseller placed a $500,000 order in April on behalf of the same European military customer.

DroneShield chief executive officer Oleg Vornik said clients were now purchasing the company’s products in material quantities.

“The scale and frequency of orders has been increasing as leading military customers move from testing hardware to broader rollouts and we are well placed to meet this demand,” he said.

Asia-Pacific contract

The European contract follows a $32.2 million order in April for vehicle-mounted and fixed Counter-UxS (counter-drone) systems from an in-country reseller on behalf of a military customer in the Asia-Pacific.

The region is experiencing a significant ramp-up as multiple governments commence security programs against threats of potential attacks and Chinese drones conducting surveillance of sensitive areas.

DroneShield announced in January that it had received seven other standalone contracts worth $12.3m from the reseller for the same end customer.

Mass production ramp-up

DroneShield has continued to ramp up its mass production capabilities to the current $500m annual capacity across supply chain, inventory and deployment, with the goal of immediate or short-term fulfilment of customer and record-size orders.

This has involved upgrading and enlarging its Sydney facility in January, as well as scaling up its outsourced manufacturing.

Rapid order fulfilment enables the company to more quickly recognise revenues and receive cash receipts and increases the likelihood of customers placing repeat and larger purchase orders.