The DroneShield Ltd (ASX: DRO) share price is in focus after the company announced $23.2 million in new European military contracts and forecasted strong revenue growth for FY2026.
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What did DroneShield report?
- Secured $23.2 million in contracts with a European military end-customer via COBBS BELUX BV.
- 1H 2026 revenue expected at $125.8 million, up 74% on the prior corresponding period (PCP).
- Recurring revenue for 1H 2026 estimated at $14.2 million (11.3% of total).
- FY2026 committed revenue stands at $206 million, near last year's full revenue already.
- Gross margin for 1H 2026 estimated at 60%, lower than 65% in PCP due to sales mix and other factors.
- FY2026 total revenue is forecast in the $250 million–$270 million range, up 15–25% on FY2025.
What else do investors need to know?
DroneShield has released RfAI-3, its next-generation radio frequency detection engine. This technology marks a significant leap in counter-drone capabilities, allowing operators to detect unknown and evolving drone threats more effectively.
The company expects first releases of new RfAI-3-equipped hardware in the second half of 2026, with further deployments into 2027. Meanwhile, existing customers can still access software updates via subscription, as the RF detection library continues to expand.
DroneShield's growth momentum is supported by existing contracts, a strong sales pipeline, and a commitment to innovation and operational growth. Investors can expect further detail when 1H 2026 results are released on 26 August, followed by an investor call.
What did DroneShield management say?
CEO and Managing Director Angus Bean said:
The first half of 2026 has been an important period for DroneShield. We have converted global customer demand into revenue, deepened engagement with defence and government customers, and continued to scale the business at pace while executing a structured leadership transition … We have also commenced the rollout of our next-generation product roadmap, the most significant product cycle in our history, which we expect to begin contributing from 2027. Innovation remains core to our mission … and we enter the second half with strong momentum and conviction in the opportunity ahead.
What's next for DroneShield?
Looking forward, DroneShield expects to deliver FY2026 revenue of $250 million to $270 million, reflecting strong order momentum and demand in global defence markets. A focus on launching next-generation hardware and expanding recurring software revenue will play key roles in maintaining long-term growth.
Management is investing in R&D, operational and sales capabilities to support this trajectory. The RfAI-3 and new hardware platforms are anticipated to underpin the next growth phase from 2027.
DroneShield share price snapshot
Over the past 12 months, DroneShield shares have declined 34%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.
