DroneShield Ltd (ASX: DRO) shares are starting the week in a positive fashion.
In morning trade on Monday, the counter drone technology company's shares are up by over 4% to $2.49.
This compares favourably to a gain of 0.3% by the ASX 200 index at the time of writing.
Why are DroneShield shares charging higher again today?
Investors have been bidding the company's shares higher again on Monday after it released yet another positive announcement.
According to the release, DroneShield has received a package of three standalone contracts for its handheld and on the move counter drone systems.
The contract sum is $9.7 million and was from DroneShield's privately owned in-country reseller that is contractually required to distribute the products to a defence end customer in a Latin American (LATAM) country.
The release notes that DroneShield expects to deliver all equipment throughout the third quarter and fourth quarter of 2025, with cash payment expected during the same period. No additional material conditions need to be satisfied to complete the sale.
Management highlights that it has previously received two standalone contracts from this reseller for this defence customer in December 2024 and January 2025 totalling approximately $10.8 million. Pleasingly, with these contracts, all imports, deliveries, and payments were handled on-time and in a highly professional manner.
There is no obligation for any additional contracts from this reseller or the customer.
As per its previous contract announcement, DroneShield isn't naming the end customer. It stated that "it does not consider the identity of the counterparty/customer to be information that a reasonable person would expect to have a material effect on the price or value of the DroneShield's securities."
The company's CEO, Oleg Vornik appeared to be pleased with the news and confident there will be similar contracts from the region in the future. He said:
In 2025, DroneShield has successfully delivered products, capability, and training into the Latin American market. With a substantial pipeline, diversified over multiple countries and customers, DroneShield is anticipating further developments in 2025 in this region.
Following today's move higher, DroneShield shares are now up 230% since the start of the year.
To put this into context, a $10,000 investment in the company's shares at the end of 2024, would now be worth a staggering $33,000 today. Here's hoping the second half of the year is equally successful for its shareholders.
