The DroneShield Ltd (ASX: DRO) share price is flying higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed yesterday trading for $3.01. In early morning trade on Wednesday, shares are changing hands for $3.09 apiece, up 2.7%.
For some context, the ASX 200 is up 0.6% at this same time.
This follows the release of DroneShield's full-year earnings results for calendar year 2025.
Here are the highlights.
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DroneShield share price lifts on profit surge
For the 12 months to 31 December, DroneShield reported revenues of $216.5 million, up 276% from 2024.
And the company continues to ramp up its SaaS (software as a service) revenue, which increased 312% over the year to $11.6 million. Management said they are continuing to target 30% of revenue from SaaS within five years.
And the DroneShield share price is marching higher today, with earnings before interest, tax, depreciation and amortisation (EBITDA) coming in at $4.5 million, up from a loss of $8.6 million in 2024.
On the bottom line, profit after tax was up 367% year on year to $3.5 million.
Turning to the balance sheet, DroneShield held $210 million in cash and term deposits as at 31 December, down 4% year on year. The company has no debt and boasts three consecutive quarters of positive operating cash flow.
Looking at what could impact the DroneShield share price in the months ahead, the company has a $2.3 billion sales pipeline, which represents a 92% increase in the last 12 months.
The ASX 200 drone defence stock also highlighted its growth potential and capabilities, with the company's global team growing to 450 (from 250) over the year. That includes more than 350 hardware and software engineers.
DroneShield also said it is scaling up its production capacity from $500 million a year in 2025 to $2.4 billion per year by the end of 2026 via new facilities in Australia, the United States, and Europe.
2025 also saw DroneShield join the ASX 200 in September.
What did management say?
Commenting on the full-year results helping to boost the DroneShield share price today, Peter James, independent non-executive chairman, said:
Sadly, the Ukraine war recently entered its fifth year. While there is expectation of continued sales to Ukraine for DroneShield in 2026, the vast majority of sales are not directly related to this location, and the company has sales globally with particular focus on United States, Western Europe, Asia-Pacific (excluding China) and South America.
Looking to 2026, James noted:
FY 2026 already has $104 million in secured revenue of which $22 million has been recognised to date. Secured SaaS in FY 2026 is at $22 million, of which $2 million has been recognised to date, and SaaS expected to increase further as additional sales are secured.
DroneShield shares are now up more than 286% since this time last year.
