DroneShield Posts Record $72M HY25 Revenue but Loses $45M LAND 156 SIP Contract
DroneShield was not selected as the Systems Integration Partner for the Australian Defence’s LAND 156 program, yet it reported record half-year revenue and profit driven by strong global demand for its counterdrone technology.
- DroneShield not awarded $45 million LAND 156 Systems Integration Partner contract
- Leidos Australia wins the LAND 156 SIP role
- DroneShield holds two initial LAND 156 contracts worth around $5 million
- Record HY25 revenue of $72.3 million and profit before tax of $5.2 million
- Strong global demand highlighted by a recent AUD 61.6 million European sale
DroneShield’s LAND 156 Setback
DroneShield Limited (ASX – DRO) has revealed it was not selected as the Systems Integration Partner (SIP) for the Australian Department of Defence’s LAND 156 program, a significant contract reportedly valued at approximately $45 million. Instead, the SIP role was awarded to Leidos Australia, a major player in defence systems integration.
While this outcome may initially appear as a setback for DroneShield, the company retains two contracts under the initial phase of LAND 156, including a $5 million deal announced in July 2025. These contracts cover DroneShield’s handheld and mobile counterdrone solutions, demonstrating the company’s ongoing involvement in the program despite missing out on the SIP role.
A Broader Opportunity in a $1.3 Billion Program
The LAND 156 program is a sprawling $1.3 billion initiative spanning the next decade, as confirmed by Defence Industry Minister Pat Conroy. DroneShield’s leadership remains optimistic about securing further roles within this extensive program. The company’s status as a sovereign Australian counterdrone business positions it well to collaborate with Leidos Australia and other partners as the program unfolds.
Record Financial Performance Amid Global Demand
DroneShield’s latest half-year results underscore its strong market momentum. The company posted an all-time record revenue of $72.3 million and a profit before tax of $5.2 million for HY25. This performance is underpinned by surging global demand for its AI-driven drone detection and defeat technologies, which are actively deployed in conflict zones such as Ukraine and by over 30 militaries and law enforcement agencies worldwide.
A recent highlight includes a landmark AUD 61.6 million sale to a European customer, reflecting the company’s expanding footprint in international defence markets. These operational successes provide real-world validation of DroneShield’s technology and reinforce its competitive position despite the LAND 156 SIP award outcome.
Looking Ahead
DroneShield’s commitment to delivering reliable counterdrone solutions remains steadfast. The company is focused on leveraging its proven technology and sovereign status to secure further contracts within the LAND 156 program and beyond. Investors and industry watchers will be keen to see how DroneShield navigates this competitive landscape and capitalizes on the growing global demand for counterdrone capabilities.
Bottom Line?
DroneShield’s LAND 156 SIP miss is a hurdle, but record revenues and global demand signal a resilient growth trajectory.
Questions in the middle?
- What specific roles might DroneShield secure within the remaining $1.3 billion LAND 156 program?
- How will DroneShield collaborate with Leidos Australia moving forward on LAND 156?
- Can DroneShield sustain its record revenue growth amid intensifying global competition?
