Why are DroneShield shares trading higher today?

The anti-drone company continues to expand its footprint.

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DroneShield Ltd (ASX: DRO) shares are trading higher after the company announced that it had opened its new European headquarters in Amsterdam.

The company said the headquarters signified its commitment to the European region which was among its fastest-growing markets, "and provides a strengthened operational presence to support its expanding footprint across EU and NATO-aligned markets''.

A female soldier flies a drone using hand-held controls.

Image source: Getty Images

Servicing a key market

DroneShield said the new headquarters would serve as the operational base for its EU Centre of Excellence, and aligned the company with the EU's ReArm Europe Plan/Readiness 2030 initiative, "which seeks to boost military spending, strengthen industrial sovereignty, and accelerate support for Ukraine".

The company added:

It further builds on DroneShield's newly established European manufacturing footprint to advance sovereign counter-UAS capability, which marks a major expansion of the Company's European industrial footprint and manufacturing capacity.

The new headquarters will be led by Louis Gamarra, who was promoted to the position of Chief Commercial Officer earlier this year.

The company said:

Mr Gamarra will oversee the continued growth of DroneShield's commercial and operational functions across Europe, including the expansion of a dedicated in-region team. The Company's European footprint now comprises of around a dozen staff, and benefits from a multilingual team proficient in English, German, French, Dutch, Spanish, and Scandinavian languages (Danish, Swedish, and Norwegian). The team will continue to work alongside DroneShield's robust network of European resellers, while also growing internal operations functions to support delivery to customers. The newly established European headquarters will ensure that customers receive not just leading-edge capability, but also more efficient support and deployment.

DroneShield said that in 2025, Europe was its best-performing market, accounting for $98 million in revenue and 45% of total revenue.

The company added:

As of February 2026, DroneShield has a regional pipeline valued at $1.2 billion. Geopolitical pressures, such as the Iranian conflict, ongoing war in Ukraine and repeated Russian drone incursions, continue to drive demand for deployed counter-UAS solutions across Europe and the Middle East.

Mr Gamarra said regarding the opening:

DroneShield's investment in Benelux marks a major milestone that strengthens our ability to support frontline users, procurement agencies and industry partners across Europe. With increasing demand for counter-drone solutions across the region, our new European headquarters will allow us to deliver faster, more localised support to our EU partners. We're proud to be investing in local talent and infrastructure to meet the growing security needs across Europe.

DroneShield shares were 1.8% higher in early trade on Monday at $3.94. Bell Potter has a $4.80 price target on the stock.

The company was valued at $3.58 billion at the close of trade on Friday.

Motley Fool contributor Cameron England 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 and is short shares of 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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