DroneShield shares jump on sales milestone

DroneShield has passed a key sales milestone with the receipt of two new contracts.

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A silhouette of a soldier flying a drone at sunset.

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Key points

  • DroneShield has won two new contracts with the US Department of Defense.
  • Total systems sold has now surpassed 4000.
  • The company says follow-up orders show the worth of its systems.

DroneShield Ltd (ASX: DRO) shares were trading more than 3% higher on Tuesday after the company said it had now sold more than 4000 systems worldwide.

The anti-drone technology company said in a statement to the ASX that it had passed the milestone following the receipt of two contracts worth $7.9 million for delivery to the US Department of Defense.

DroneShield has previously received standalone orders from this customer. These repeat orders strengthen DroneShield's position as a trusted provider of mission-critical solutions to address the growing challenge of drone threats on the modern battlefield and the civilian sector.

DroneShield's US chief executive officer, Matt McCrann, said it was an important milestone for the company.

"It underlines the performance and dependability of our solutions in the field, and the trust placed in DroneShield by those who rely on them," Mr McCrann said.

DroneShield said its handheld solutions formed the cornerstone of its counter-drone portfolio, "which spans dismounted, vehicle-mounted, and fixed-site solutions that fuse multiple sensors and effectors integrated through DroneShield's advanced software".

Together they provide a layered defence architecture enabling operators to detect, track, identify and defeat hostile drones with speed and precision.

The new order is expected to be fulfilled within 30 days. DroneShield shares were 3% higher on the news, at $3.23. At Tuesday's close, the company was valued at $2.74 billion.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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