DroneShield secures $6.2 million Asia Pacific contract

DroneShield has announced a $6.2 million contract with an Asia Pacific military client, expanding its defence industry presence.

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Key points

  • New $6.2 Million Contract: DroneShield Ltd has secured a significant $6.2 million contract with a military customer in the Asia Pacific, set for delivery and payment in 2026.
  • Growing Asia Pacific Presence: This deal, facilitated by an in-country reseller, adds to DroneShield's record of 14 contracts totalling over $48 million, underscoring its role as a trusted military technology supplier.
  • Focus on Future Growth: While this contract won't heavily impact the share price immediately, DroneShield is focused on fulfilling its contract obligations and further strengthening industry relationships.

The DroneShield Ltd (ASX: DRO) share price is in focus today after the company announced a new $6.2 million contract for its AI-powered defence solutions, expected for delivery and payment in 2026.

What did DroneShield report?

  • Secured a $6.2 million Asia Pacific contract with a military end-customer
  • Delivery and cash payment anticipated in 2026
  • The contract was arranged through an in-country reseller for a government department
  • Solutions include interoperability with DroneShield's command-and-control software, DroneSentry-C2
  • DroneShield has received 14 standalone contracts from this reseller over the past 2 years, totalling over $48 million

What else do investors need to know?

DroneShield's latest deal adds to a growing tally of contracts in the Asia Pacific region, reinforcing its role as a trusted technology supplier for military clients. The company points out there is no obligation for further contracts but notes its consistent relationship with this significant global reseller.

Management also confirmed all material information regarding the financial impact and customer identity is fully disclosed and does not expect this news to have an outsized impact on its share value.

What's next for DroneShield?

With delivery and payment on this contract expected in 2026, DroneShield's focus now turns to executing on its obligations and continuing to nurture key industry relationships. Management remains committed to innovation, leveraging its AI-based defence platforms across terrestrial, maritime, and airborne security markets.

DroneShield share price snapshot

Over the past 12 months, Droneshield shares have soared 411%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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