DroneShield Surpasses 4,000 Systems Sold With $7.9 Million US Department of Defense Orders

DroneShield (ASX: DRO) has reached a major milestone with more than 4,000 of its counter-drone systems now in operation worldwide.

The company has won two new contracts worth $7.9 million from the US Department of Defense (DOD) for handheld systems, which it has scheduled for delivery this quarter.

Chief executive Oleg Vornik said the scale of repeat orders highlights the growing reliance on DroneShield’s technology as militaries respond to escalating drone threats.

US Defense Expands Procurement Footprint

The latest orders represent more than just incremental sales—they confirm DroneShield’s transition from pilot deployments to mainstream adoption in the world’s largest defense market.

The DOD is drawing directly from the company’s stockpile, enabling deliveries within 30 days, a speed few competitors can match.

The handheld units form one part of DroneShield’s integrated ecosystem, which also spans vehicle-mounted platforms and fixed-site installations, with devices connecting through proprietary command-and-control software to allow users to detect, track, and neutralise drones simultaneously across multiple domains.

Customers subscribe to DroneShield’s software-as-a-service platform, which pushes quarterly AI-driven firmware upgrades to ensure each deployed system remains current against rapidly evolving drone technologies, protecting customers’ investment and enhancing operational confidence.

By positioning itself as a reliable supplier capable of meeting urgent needs, DroneShield is embedding its systems into long-term procurement cycles that are likely to expand as drone incursions intensify.

Australian Manufacturing Provides Strategic Edge

DroneShield has delivered more than 2,200 RfPatrol units through its Australian manufacturing partner, with 85% of components sourced domestically.

The RfPatrol is an intuitive drone detection device that enhances alerts users to the presence of drones in real time without requiring specialist training or complex setup, and its proven performance has already anchored contracts such as a $61.6m order from Europe, a $5m Australian government program, and a $10.4m shipment to Ukraine, where counter-drone capability remains vital.

DroneShield has leveraged this momentum into record-breaking revenue growth, generating $72.3m in the first half of 2025 and more than $77m in the third quarter alone.

Management expects further deliveries before year-end will push revenue to new all-time highs, reinforcing its trajectory as one of Australia’s fastest-growing defense technology firms.

Management Confident in Market Expansion

Mr Vornik said customers are shifting from evaluation stages to sustained procurement cycles, reflecting the urgency of counter-drone defence.

“Counterdrone is still at its nascency with our customers requiring very significant additional purchases to progress to the required levels of counterdrone defence,” he said.

“DroneShield is a well-regarded industry leader globally, and we expect to continue to benefit from this rising demand.”

He added that the convergence of rising drone threats, geopolitical instability, and tightening defense budgets is creating an environment where DroneShield’s proven, rapidly deployable technology is uniquely positioned to thrive.

Investors now see DroneShield not just as a hardware provider but as a recurring revenue business, with its SaaS model and continuous contracts providing predictable cash flow alongside headline defense deals.