DroneShield Ltd (ASX: DRO) shares are starting the week with a bang.
In morning trade, the counter drone technology company's shares are up almost 9% to $4.17.
This compares favourably to the performance of the ASX 200 index, which is down 0.5% at the time of writing.
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Why are DroneShield shares rising?
Investors have been scrambling to buy the company's shares this morning after it announced another major contract win.
According to the release, DroneShield has received a $25.3 million contract from a privately owned in-country reseller that is contractually required to distribute the products to a Government defence end customer in a Latin American (LATAM) country.
Management notes that it expects to deliver all equipment throughout the fourth quarter of 2025 and the first quarter of 2026, with cash payment expected during the same period. There are no additional material conditions that need to be satisfied to complete the sale.
This is just the latest in a series of orders from this reseller. However, it is by far the largest. The company revealed that it has previously received seven standalone orders from the reseller between March 2019 and July 2025, totalling approximately $2.9 million.
Who is the end customer?
DroneShield hasn't revealed who the end user is, only that it is a government in Latin America. However, it said:
DroneShield confirms 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; and the announcement contains all material information relevant to assessing the impact of the contract on the price or value of the DroneShield's securities and is not misleading by omission.
Commenting on the sizeable sales contract, DroneShield's CEO, Oleg Vornik, said:
With this new contract, DroneShield continues to position itself as one of the preferred C-UAS systems in Latin America. As demand continues to evolve, DroneShield is ready to meet the requirements from a region where drones play a key role in the modern warfare.
Despite recent share price weakness, today's rebound means that DroneShield shares are now up by a remarkable 450% since the start of the year.
To put this into context, a $10,000 investment at the end of December would now be worth approximately $55,000.
