These were the best-performing ASX 200 shares in September

These shares made investors smile last month. Let's see what drove them higher.

Excited couple celebrating success while looking at smartphone.

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Key points

  • A counter drone technology company saw a 41% share price increase, spurred by ASX 200 inclusion, US R&D expansion, and major contract wins.
  • Gold and rare earth shares benefited from rising prices, with notable gains for a gold explorer and a rare earth producer due to booming market conditions.
  • A contract services provider experienced a 20.5% rise after announcing the acquisition of Fredon Industries, expected to significantly boost future revenue and earnings.

The S&P/ASX 200 Index (ASX: XJO) was out of form in September and ended the month with a decline of 1.4%.

The good news is that this didn't stop some ASX 200 shares from recording very strong gains.

Let's now look at some of the best-performing shares on the benchmark index during the month:

DroneShield Ltd (ASX: DRO)

The DroneShield share price was the best performer on the ASX 200 index in September with a gain of 41%. There were a number of catalysts for the counter drone technology company's strong performance. One was its inclusion in the ASX 200 at the quarterly rebalance. In addition, it announced that it was significantly expanding its research and development (R&D) operations in the United States and revealed that it has surpassed 4,000 systems sold worldwide with the receipt of a package of two standalone contracts totalling $7.9 million for handheld systems for delivery to the U.S. Department of Defense. Finally, news that the EU wants to make a "drone wall" across its Eastern borders gave its shares a major boost late in the month.

Greatland Resources Ltd (ASX: GGP)

The Greatland Resources share price wasn't far behind with a gain of 35% last month. It was one of a number of ASX 200 gold shares that raced higher in September thanks to the booming gold price, which reached multiple record highs. The likes of Bellevue Gold Ltd (ASX: BGL) and Regis Resources Ltd (ASX: RRL) also stood out with gains of 34% and 32%, respectively, during the month.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was on form and charged 21% higher last month. Investors were fighting to get hold of the rare earths producer's shares after the price of these elements surged. As we covered here, neodymium, which is a key ingredient in permanent magnets that power electric vehicles (EVs), was up 58% since the start of the year. In addition, the team at Morgan Stanley put an overweight rating on its shares with an improved price target of $14.75 (from $12.85). Though, its shares have now surpassed this.

NRW Holdings Limited (ASX: NWH)

The NRW Holdings share price was a strong performer with a gain of 20.5%. A key driver of this was news that the contract services provider executed a binding agreement to acquire 100% of Fredon Industries for an enterprise value of up to $200 million, on a debt free cash free basis. Management advised that Fredon has clear visibility on FY 2026 forecast earnings and is expected to generate revenue of ~$840 million and EBIT of ~$40 million.

Motley Fool contributor James Mickleboro 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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