DroneShield Secures $25.3M Latin America Defence Contract
DroneShield has landed a significant $25.3 million contract to supply counter-drone systems to a Latin American government, marking a major expansion in the region. Deliveries and payments are scheduled across late 2025 and early 2026.
- $25.3 million contract awarded via Latin American reseller
- Deliveries and payments expected in Q4 2025 and Q1 2026
- Previous orders from same reseller totalled $2.9 million since 2019
- Contract involves DroneShield’s counter-UAS technology
- End customer is a government defence entity in Latin America
A Major Win in Latin America
DroneShield Limited (ASX – DRO) has announced a substantial $25.3 million contract to supply its counter-unmanned aerial systems (counter-UAS) technology to a government defence customer in Latin America. The order comes through a privately owned reseller based in the region, continuing a relationship that has seen previous orders worth approximately $2.9 million since 2019.
This new contract significantly boosts DroneShield’s presence in a market where drone threats are increasingly shaping defence strategies. The company’s technology, including its flagship DroneSentry-X Mk2 system, is designed to detect and neutralise hostile drones, a capability that is becoming vital in modern warfare scenarios.
Delivery and Payment Timeline
DroneShield expects to deliver all equipment during the fourth quarter of 2025 and the first quarter of 2026, with payments aligned to this schedule. This phased delivery and payment approach provides clear revenue visibility for the company over the coming quarters. Importantly, the contract does not include any additional material conditions, suggesting a straightforward execution path.
CEO Oleg Vornik highlighted the strategic importance of this contract, stating that DroneShield is positioning itself as a preferred counter-UAS provider in Latin America. He emphasised the evolving demand in the region, where drones play a critical role in defence operations.
Implications for DroneShield and the Market
This contract marks a substantial leap from previous orders and underscores DroneShield’s growing footprint in Latin America. The region’s increasing investment in drone defence technology aligns with global trends, where unmanned systems are both a threat and a tactical asset. For DroneShield, this deal not only enhances revenue prospects but also strengthens its reputation as a trusted supplier in a geopolitically sensitive market.
While the identity of the end customer remains undisclosed, the reseller arrangement introduces some counterparty considerations. Investors will be watching closely for updates on delivery progress and any further contracts that might follow in this strategically important region.
Bottom Line?
This contract cements DroneShield’s foothold in Latin America, setting the stage for further growth amid rising drone defence demand.
Questions in the middle?
- Who is the undisclosed government end customer behind the reseller?
- Will DroneShield secure additional contracts in Latin America following this deal?
- How will the phased delivery impact revenue recognition and cash flow in 2025-26?
