The DroneShield Ltd (ASX: DRO) share price is down 1.72% at 85.5 cents after the company released its preliminary full-year results for 2024.
The defence hardware and software business revealed another record year of revenue.
The DroneShield share price had a stronger open at 89 cents, up 2.3%, and quickly rose to an intraday high of 91 cents, up 4.6%, before falling into the red in the first hour of trading today.
Let's check out the report.
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DroneShield share price fluctuates following FY24 report
Here are the highlights of the FY24 report:
- Revenue of $57.5 million, up from $54.1 million in 2023
- Software-as-a-service (SaaS) revenue of $2.8 million, up from $1.4 million in 2023
- Net loss after tax of $1.32 million, down from a profit of $9.336 million in 2023
- Cash balance of $215.2 million as of 18 February 2025
Droneshield said revenue growth was slower in FY24 because several pipeline projects took longer than expected to finish.
This was partly due to still-nascent procurement processes for the counterdrone industry, and a more complicated approval process for large contracts.
However, the company noted its FY24 revenue was driven by smaller customer contracts, which reduces risk in the longer term by diversifying the customer base.
Greater investment to scale up the business and generate increased future revenues resulted in a net loss for FY24.
However, the company is already on track to substantially better its 2024 revenue this year.
It noted that $18 million of revenue in 2025 had already been recorded and that a further $33 million in committed contracts was underway.
What else happened in FY24?
Part of DroneShield's growth strategy in 2024 was a "transformational" $235 million capital raise to allow for ongoing growth, additional research and development, and the establishment of appropriate inventory levels for rapid order fulfilment.
In 2024, DroneShield expanded its Sydney manufacturing facility to enable a capacity of up to $500 million in products per annum.
The majority of the expanded space is dedicated to the production of the DroneSentry-X Mk2TM (multi-mission vehicle/fixed site/vessel detect and defeat system).
The company said DroneSentry-X Mk2TM is "expected to drive significant revenue in FY2025 and beyond".
In April, DroneShield was awarded the first NATO framework agreement for counter-small UAS (CUAS) procurement in NATO's history.
The news drove the DroneShield share price 18% higher.
DroneShield CEO Oleg Vornik described it as "one of the most strategically noteworthy agreements" in Droneshield's history.
The company said the NATO agreement was expected to drive "material sales" both directly and via the 'halo' effect.
In September, DroneShield was admitted to the S&P/ASX 300 Index (ASX: XKO).
This provided a tailwind for the Droneshield share price because it meant the company's stock would be automatically bought by passive index funds tracking the ASX 300.
What did management say?
Independent Non-Executive Chairman Peter James said drones and counterdrone systems were being used in every conflict globally, including the Ukraine war.
He said non-military uses for drones were also on the rise. Customers include the intelligence community, airports, prisons, border security, stadiums, and other facilities.
In a statement, James said:
Nefarious use of drones is a global and rapidly rising threat, with DroneShield providing a proven market leading suite of solutions, directly and via its network of in-country partners in 70 countries globally.
What's next for Droneshield?
DroneShield's $1.2 billion pipeline includes large projects in Asia (ex-China) and Europe.
There are 20 projects worth $543 million underway in Asia (ex-China) as multiple Asian governments accelerate their response to China's use of drones.
This includes DroneShield's largest current pipeline project worth $228 million.
There are also 47 projects worth $382 million on the go in Europe.
However, James said the United States remains the company's biggest opportunity.
About 70% of the company's revenue in FY24 and FY23 came from US projects.
Currently, there are 83 projects worth $122 million underway in the US.
James said:
The Trump presidency is expected to be an overall positive for the Company, with an anticipated additional investment into the US border security, defence and law enforcement, as well as fast tracking of C-UxS legislation, such as enabling a greater number of Government agencies to use C-UxS equipment. DroneShield is well aligned, being one of the first Australian companies registered with the AUKUS export framework.
DroneShield will conduct an investor webinar tomorrow at 8am AEDT.
Droneshield share price snapshot
The DroneShield share price has risen by 15% over the past 12 months.
By comparison, the ASX 300 has increased by 7.5%.
