DroneShield Lands $7.6m U.S. Order Amid Rapid Growth and AI Expansion
DroneShield has secured a $7.6 million contract for handheld counterdrone systems from the U.S. Government, marking another repeat order that underscores its expanding footprint and production scale-up.
- Received $7.6 million in new U.S. Government orders for handheld counterdrone systems
- Repeat customer orders totaling over $20 million since May 2024
- Production capacity expanding from $500 million to $2.4 billion annually by end 2026
- Launched new AI SaaS drone defeat solution, RFAI-ATK, with trials underway
- Sales pipeline includes multiple opportunities exceeding $100 million, including an $800 million prospect
Steady Growth Through Repeat Orders
DroneShield Limited (ASX, DRO) has announced a fresh $7.6 million order from the U.S. Government for handheld counterdrone systems, continuing a pattern of repeat business that reinforces its trusted status in the defense technology sector. This latest package, comprising three standalone contracts, is slated for delivery in the final quarter of 2025, with payments expected shortly thereafter.
Since May 2024, DroneShield has received multiple orders from the same U.S. Government customer, including $5.7 million and $7.9 million contracts, highlighting a growing reliance on its mission-critical counterdrone solutions. These handheld systems form a vital part of DroneShield’s broader portfolio, which integrates advanced sensors and effectors to detect and neutralize drone threats across military and civilian domains.
Scaling Production and Expanding AI Capabilities
Behind the scenes, DroneShield is aggressively scaling its production capacity from $500 million to an ambitious $2.4 billion annually by the end of 2026. This expansion includes the establishment of assembly plants in both Europe and the United States, positioning the company to meet increasing global demand.
Complementing its hardware growth, DroneShield recently launched RFAI-ATK, an AI-enabled drone defeat software solution delivered via a SaaS model. Currently in trial deployments, this offering is expected to become a regular product by mid-2026, reflecting the company’s commitment to integrating artificial intelligence into its defense technologies.
Robust Sales Pipeline and Market Position
CEO Oleg Vornik emphasized the importance of both large and smaller orders in maintaining steady business momentum. With 78 purchase orders received year-to-date in 2025; up from 66 in all of 2024; and a median order size doubling to approximately $400,000, DroneShield is demonstrating diversified and accelerating growth.
The company’s sales pipeline is particularly noteworthy, featuring multiple opportunities exceeding $100 million each, including a standout $800 million prospect. While these remain prospective, they underscore the significant market potential for DroneShield’s counterdrone and electronic warfare solutions.
Looking ahead, DroneShield plans to raise its announcement threshold for received orders in 2026 to $20 million, reflecting its growing scale and confidence in sustained revenue growth.
Bottom Line?
DroneShield’s expanding order flow and AI innovation set the stage for a transformative 2026, but execution on large pipeline deals will be key.
Questions in the middle?
- How likely is the conversion of the $800 million sales opportunity into confirmed contracts?
- What impact will the new AI SaaS offering have on recurring revenue and customer retention?
- How will the expanded production capacity affect margins and delivery timelines?
