DroneShield share price hit as company strikes back

DroneShield shares are under fire again on Monday. But why?

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Key points

  • DroneShield's share price has dropped 2% to $1.680 on Monday morning.
  • The company plans an independent review of its disclosure and trading policies to address recent market concerns and improve transparency.
  • Dismissing challenges from fibre-optic drones, DroneShield maintains that its business foundation is strong, with record revenues driven by global expansion and ongoing technological innovation.

The DroneShield Ltd (ASX: DRO) share price is taking a hit today.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed on Friday trading for $1.715. In morning trade on Monday, shares are changing hands for $1.680 apiece, down 2%.

For some context, the ASX 200 is up 1.1% at this same time.

As you're likely aware, the DroneShield share price has come under tremendous pressure since rocketing to a record closing high of $6.50 on 9 October.

Among other issues, investors have been selling amid media speculations that the company's sales could be impacted by the rise of drones using fibre optic technology.

And, of course, on 13 November, the share price crashed 31.4% following news that CEO Oleg Vornik had sold $49.47 million shares in the company the previous week, with several other directors also offloading sizeable shareholdings.

Today, DroneShield sought to reassure the market with a response to recent media reporting.

DroneShield share price slides on media response

Acknowledging that in recent weeks the company's level of stakeholder engagement has fallen short of expectations as it's been focused on engaging with the Australian Securities Exchange, DroneShield chairman Peter James said:

DroneShield is committed to undertaking an independent review of its continuous disclosure and securities trading policies and other areas, as stated in the 20 November 2025 response to the ASX.

That review will be overseen by independent directors, Simone Haslinger & Richard Joffe. It reflects DroneShield's commitment to transparency and continuous improvement as the company grows.

As for the growth outlook for the DroneShield share price, CEO Oleg Vornik said, "The fundamental business of DroneShield remains strong and unchanged."

Vornik added:

The company continues to deliver record revenues, expand globally, and invest in technological innovation to meet evolving customer needs. Record revenues in 2025 have been driven by repeat customers, reflecting market confidence in DroneShield's solutions.

The company noted that Vornik continues to hold a mix of vested and unvested performance options in DroneShield.

What about fibre optic drones?

The DroneShield share price has also faced headwinds amid recent analyst and media speculations that fibre-optic drones are becoming commonplace on battlefields and cannot be taken out by DroneShield's jamming technology.

In response, the company said it relies on feedback from frontline customers and insights from real-world deployments. DroneShield noted that its solutions are informed by extensive operational experience and customer engagement.

Management said that recent reports implying fibre-optic drones are becoming mainstream "are not consistent with field realities". They cited a recent interview with a Ukrainian Deputy Prime Minister who described fibre-optic drones as "sluggish" and said these are rarely used due to operational challenges.

Leadership news

On the global leadership front, DroneShield reported that Tom Branstetter, Vice President of Sales and Business Development, who the company said has been a key contributor to the success of its US presence in recent years, has taken on a larger role and will lead the company's US operations in the interim.

With today's intraday fall factored in, DroneShield shares are down 74.2% from the 9 October all-time highs.

Taking a step back, shares remain up 121.5% over 12 months.

Motley Fool contributor Bernd Struben 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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