Droneshield shares (ASX:DRO) experienced a significant surge today, leading the ASX 200 index on the day, following the announcement of a substantial contract with a European reseller, signalling continued strong demand for its counter-drone technology. The contract solidifies the company’s position in the European defense market, further validating its strategic focus and product relevance.
The Droneshield share price closed at A$2.81 today, for a mighty a gain of 22.17%, and contributes to a 35.1% increase since the beginning of the week, as bullish sentiment in the name returns in force.
The contract, valued at $49.6 million, is with a long-standing European reseller that supplies DroneShield’s systems directly to European military end customers. This marks the 15th contract with this particular customer over three years, highlighting an established and growing relationship. The focus of the contract is on handheld counter-drone systems, reinforcing the demand for DroneShield’s portable solutions. Management anticipates cash receipts from this contract by Q1 FY26. This contract follows a previous $5.2 million follow-on contract with the same reseller announced in November 2025, also focused on handheld counter-drone systems.
DroneShield has experienced substantial growth recently. The company reported record-breaking financial results for the first half of 2025, with revenue reaching $72.3 million, a 210% increase compared to the same period in 2024. The company also achieved a profit after tax of $2.1 million. In June 2025, DroneShield secured its largest contract to date, valued at $61.6 million, with the same European reseller.
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Despite these positive developments, the company’s share price experienced volatility in November 2025 following the sale of shares by CEO Oleg Vornik and other executives. Vornik sold $49.5 million worth of shares, leading to investor concerns.
Analysts’ outlook on DroneShield has generally been moving to the upside this year, with the consensus one-year price target at $5.15 per share.
