DroneShield Triples Production Capacity with $13M Expansion Amid Record Demand
DroneShield is investing $13 million to significantly expand its R&D and manufacturing footprint, aiming to boost annual production capacity nearly fivefold by the end of 2026.
- Investment of $13 million in new Sydney production and R&D facilities
- Production capacity to increase from $500 million to $2.4 billion annually by 2026
- New 3,000sqm production facility triples current manufacturing space
- Expansion complements planned manufacturing in Europe and the US
- Recent record contracts underpin growth, including a $61.6 million European order
Strategic Expansion in Response to Global Demand
DroneShield Limited (ASX – DRO), a leader in counter-drone technology, has announced a major $13 million investment to expand its research, development, and manufacturing capabilities. This move comes amid surging global demand for advanced defence solutions, driven by escalating geopolitical tensions and increased military spending, particularly in Europe.
The centerpiece of this expansion is a new 3,000 square metre production facility in Sydney’s Alexandria, set to open by December 2025. This facility will more than triple DroneShield’s current manufacturing floor space, enabling the company to scale its annual production capacity from $500 million to $900 million domestically by mid-2026.
R&D Growth and Global Manufacturing Footprint
Alongside the new production site, DroneShield is enlarging its R&D area by an additional 2,500 square metres at its headquarters, increasing total R&D space to over 5,500 square metres. This expansion underscores the company’s commitment to innovation and maintaining technological leadership in counter-drone and electronic warfare systems.
Moreover, DroneShield is advancing plans to establish contract manufacturing operations in Europe and the United States. These initiatives aim to support local defence programs and leverage sovereign manufacturing capabilities, aligning with major defence spending programs such as the European Union’s EUR800 billion ReArm Europe Plan.
Backed by Record Contracts and Market Momentum
The expansion announcement follows a series of significant contract wins, including a $61.6 million order from Europe; the largest in the company’s history; alongside contracts in Latin America and the Five-Eyes intelligence alliance. These deals highlight DroneShield’s growing footprint in key defence markets and validate its strategy to scale production rapidly.
CEO Oleg Vornik emphasized the geopolitical backdrop driving demand – "In response to rising threats and multiple wars taking place across the globe, Australia’s allies are increasing investment in modern defence capabilities. We are stepping up to meet this demand by investing in state-of-the-art facilities here and abroad." He also highlighted the importance of Australian engineering in delivering cutting-edge counter-drone solutions.
Looking Ahead
DroneShield’s expanded manufacturing capacity is projected to reach a combined $2.4 billion annually by the end of 2026, positioning the company to meet a rapidly growing global sales pipeline estimated at $2.34 billion. While the Australian facility is a major step forward, the success of the European and US manufacturing initiatives will be critical to sustaining this growth trajectory.
Bottom Line?
DroneShield’s bold capacity expansion sets the stage for a new era of growth, but execution across multiple continents will be key to fulfilling its ambitious pipeline.
Questions in the middle?
- How quickly will DroneShield’s European and US manufacturing facilities become operational?
- What impact will the expanded capacity have on DroneShield’s profit margins and supply chain dynamics?
- Can DroneShield sustain its contract momentum amid evolving geopolitical risks and competitive pressures?
