Shares in Elsight Ltd (ASX: ELS) were trading higher on Wednesday after the company, which has increased in value 10-fold over the past year, said it had won new contracts worth more than US$20 million.
The company said in a statement to the ASX on Wednesday that it had secured a new contract worth US$21.2 million ($32.1 million) for delivery across January to April next year, "reflecting strong beginning and forward demand for the Halo platform across multiple defence and uncrewed programs''.
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Innovative communications technology
The company's Halo platform is a communications technology for "beyond visual line of sight" drone operations, according to the Elsight website.
As the company says:
Elsight's Halo beyond visual line of sight communication module ensures uncrewed aerial and ground systems (UAVs/UGVs) remain securely connected to their command centres, across any terrain, spectrum disruptions, or network limitations. Powered by proprietary multilink bonding technology, Halo seamlessly aggregates cellular, SATCOM, and other RF networks into a virtual pipeline with built-in redundancy, enabling continuous transmission of video, telemetry, and control data. Proven across hundreds of thousands of operational hours in the most demanding environments, Halo delivers the connection confidence that military, commercial, and public safety operators demand.
The company said for the calendar year to date, it had delivered a record 1000% year-on-year revenue growth, and the new order "accelerates the company's move to sustained profitability''.
The company said the new order was with a European customer, and "consistent with prior engagements, the contract includes up-front payments to support working capital, with the remaining balance payable prior to delivery''.
Company building credibility
Elsight Chief Executive Officer Yoav Amitai said it was a major win for the company.
This contract further strengthens our visibility heading into 2026 and reflects the depth of engagement we are now seeing across defence and commercial markets. This, in addition to advancing to the next phase of the DIU Project G.I. program, together with the maturing opportunities across our global pipeline, demonstrates the trust being placed in Halo as a mission critical connectivity layer. We enter 2026 with strong momentum, expanding demand, and a clear foundation for continued growth.
The "DIU" project refers to a US Defense Innovation Unit project, which Elsight is taking part in, having performed successfully in two phases of the project to date.
As part of the Phase 3 program, "Elsight will further demonstrate and validate its HALO system's operational readiness across real-world scenarios'', the company's website says.
Elsight shares were 6.3% higher at $3.05 in early trade on Wednesday. The company's shares have increased more than 10-fold over the past year from lows of 29 cents.
Elsight was valued at $630 million at the close of trade on Tuesday.
Bell Potter recently tipped Elsight as a defence company to watch; however, its share price target on the stock was only $2.
