DroneShield shares (ASX: DRO) have been a notable outperformer this year, with the price having 3x’d since the start of 2025 (+325%). With DRO having pulled back more than 28% from recent highs, the announcement of its inclusion in the S&P/ASX 200 index, has seen buyers willing to step back in, with shares having slowed their decline last week at the A$3 level, potentially setting out some support.
Sentiment has been boosted today, with the inclusion expected to draw increased investment from passive funds and index tracking. Following the announcement, DroneShield shares jumped 5.28% to A$3.19, reflecting the market’s positive reaction to the ASX 200 inclusion.
The inclusion in the S&P/ASX 200, effective September 22, 2025, is a significant milestone for DroneShield, reflecting its increased market capitalization and overall growth.
DroneShield’s strong financial performance, including a fivefold increase in cash receipts to $73.5 million and a threefold rise in revenue to $55.1 million, further supports this positive outlook. The company also reported its first profitable year, with a profit after tax of $9.3 million.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
DroneShield has also secured several major contracts, reinforcing its market position.
Prior to its ASX 200 inclusion, DroneShield was added to the S&P/ASX All Ordinaries Index back in March 2024, a move that foreshadowed its entry into the more prestigious ASX 200. This progression reflects the company’s consistent growth and increasing market relevance.
DroneShield’s inclusion in the ASX 200 is a positive development, but the company must continue to execute its growth strategy and maintain profitability to sustain market confidence. The influx of passive investment provides a solid foundation, but long-term success depends on continued innovation and strategic contract wins.
Don’t Buy Just Yet
You will want to see this before you make any decisions.
Before you decide which shares to add to your portfolio you might want to take a look at this special report we recently published.
Our experts picked out The 5 best ASX shares to buy in 2025.
We’re giving away this valuable research for FREE.
Click below to secure your copy
