In afternoon trade, the Elsight share price is up 8% to $6.75, after touching an intraday peak of $6.76. That move marks a new record high and leaves the stock up roughly 1,800% over the past 12 months.

The latest gain extends one of the ASX's strongest defence tech moves. Investors continue to reward the company's expanding role in global unmanned systems connectivity.

Here's what is driving the momentum.

Drone contract wins keep the momentum building

One of the key drivers behind Elsight's strong run this year has been contract momentum across its defence-linked drone programs.

Its Halo connectivity platform is being adopted more broadly for beyond visual line of sight drone missions. Reliable multi-link communication remains critical across military, public safety, and commercial use cases.

Recent updates have pointed to new orders from the US, while Bell Potter previously described 2026 as potentially a "year of the drone" for Elsight as defence departments increase investment in autonomous systems.

The market also seems to be recognising the company's stronger financial performance.

Elsight's recent results showed record revenue, a growing installed base, and a larger pool of recurring software-style revenue, which is giving investors more confidence in future growth.

What the chart is saying now

The chart setup remains very positive.

The stock is trading well above both its short and long-term moving averages, which points to strong bullish momentum.

In addition, the relative strength index (RSI) is sitting near 70, placing the stock close to overbought territory but not yet at an extreme level.

Momentum indicators such as MACD remain supportive after the move to fresh highs.

The previous resistance zone around $6.25 now looks like the first key support level after today's breakout.

Below that, the $5.80 to $6.00 region may act as a secondary support band, which aligns with recent consolidation levels.

With the stock at new highs and no historical resistance above, momentum buyers may remain interested in the current market environment.

Foolish Takeaway

Elsight is now one of the ASX's standout defence tech stocks, with its market capitalisation pushing to around $1.25 billion.

The combination of strong contract wins, growing defence exposure, and a technically strong breakout is keeping the stock in focus.

After a 1,800% run in a year, the pace of gains is clearly extraordinary. But for now, the upward trend looks well supported.

The post Up 1,800% in a year, this ASX stock just hit another record high appeared first on The Motley Fool Australia.

The returns are impressive. But there are some much smaller, little-known ASX shares with 12-month returns that are significantly higher.

And they're earning their investors an outrageous amount of money.

Sunrise Energy Metals Ltd (ASX: SRL)

Sunrise develops and applies ion-exchange technology for the extraction of valuable metals. It does this for the mining industry and for wastewater purification and recycling. 

Its water business segment focuses on water technologies to filter, separate, and purify polluted waters for drinking, agriculture, recreation, and industrial use. Meanwhile, its metals segment provides extraction techniques for a range of resources, including base and precious metals, as well as radioactive elements such as uranium. 

Last month, the company announced that its Syerston scandium deposit is currently the world's largest and highest-grade source of mineable scandium.

At the time of writing, the company's ASX share price is 10.57% higher for the year to date. But it's an outstanding 3,516.67% higher than this time 12 months ago. 

The company has good growth prospects, too. Scandium, which is used in aerospace alloys, fuel cells, and advanced electronics, has a very limited global supply. If Sunrise is able to ramp up production at its Syerston site, it could well become a major global supplier. At present, the company is largely in its development stage.

African Gold Ltd (ASX: A1G)

African Gold is an exploration company focused on acquiring, exploring, and developing high-grade gold assets in West Africa. It focuses specifically on the Côte d'Ivoire and Mali. 

The miner is focused on drilling and growing its resources. It also undertakes technical studies at projects like the Didievi Gold Project.

At the time of writing, the company's shares have jumped 39.39% for the year to date. They're also up an extraordinary 1,433.33% over the past 12 months.

African Gold recently announced it has entered into a binding scheme implementation deed with Canadian-based gold miner, Montage Gold Corp (TSE: MAU). Under the agreement, Montage will acquire 100% of the shares in the ASX gold stock that it does not already hold. In exchange, African Gold shareholders will receive 0.0628 new Montage shares for every African Gold share held on the record date of the share scheme.

The company is firmly focused on growth with plans to expand and ramp up exploration at its existing projects.

Elsight Ltd (ASX: ELS)

Elsight develops and commercialises a secure, AI-powered connectivity platform for unmanned aerial vehicles (UAVs), drones, and robotic systems, called Halo. 

Its technology enables uninterrupted, real-time command and control. It does this by aggregating multiple data links (using 5G, LTE, satellite, RF) for Beyond Visual Line of Sight (BVLOS) operations for defence, public safety, and commercial sectors.

Unsurprisingly, amid a ramp up demand for defence systems amid ongoing geopolitical tensions, the ASX defence stock's value has soared. For the year to date, Elsight shares are already up 69.01%, and they're a huge 1,600% higher than this time last year.

Elsight recently announced that it has appointed 5 senior business development leaders across key global markets. These include new appointments in the United States, Europe, Israel, and Asia. Management said it is designed to expand the company's go-to-market execution as demand for connectivity solutions in defence and unmanned systems programs grows.

The post 3 lesser-known ASX shares making investors an outrageous amount of money appeared first on The Motley Fool Australia.

At the time of writing, shares in the connectivity technology company are up 4.40% to $5.22. Earlier in the week, the stock reached $5.30, marking a new all-time high.

The latest move higher follows Elsight's announcement of a series of strategic leadership appointments aimed at accelerating global growth.

Let's take a closer look.

Elsight strengthens global defence leadership

According to the announcement, Elsight has appointed 5 senior business development leaders across key global markets, including the United States, Europe, Israel, and Asia.

Management said the appointments are designed to expand the company's go-to-market execution as demand for connectivity solutions in defence and unmanned systems programs grows.

The new hires include:

• Ryan Garay, Head of US Government & Special Programs

• Roi Lupo, Director of Business Development, North America

• Ron Kislev, Director of Business Development, UK & NATO Defence

• Tobias Willuhn, Business Director, Germany, EU & NATO

• Shay Dvir, Director of Business Development, Israel & APAC

Chief Executive Officer Yoav Amitai said the hires reflect the scale of opportunities now emerging for the company.

He explained that demand is increasing for secure, resilient connectivity across autonomous and unmanned systems, particularly in defence markets.

Elsight's flagship Halo connectivity platform allows drones, robotics, and autonomous systems to maintain reliable communication links even in complex or contested environments.

As military and government agencies increase investment in unmanned technologies, this type of capability is becoming very important.

Strong momentum in defence programs

The company said the leadership expansion follows a period of rapid growth in contract wins during 2025, including successful demonstrations with the US Defense Innovation Unit.

Elsight noted that its Halo platform is increasingly being viewed as a mission-critical communications backbone for next-generation unmanned systems operating in challenging environments.

Management believes expanding its commercial leadership team will help convert a growing pipeline of opportunities into new contracts across allied defence markets.

What is happening with the Elsight share price?

Based on the chart, Elsight shares remain in a strong uptrend.

The stock has surged more than 1,400% over the past 12 months, making it one of the standout performers in the ASX technology sector.

The relative strength index (RSI) is currently around 70, suggesting the stock is approaching overbought territory after its recent rally.

However, momentum remains positive.

The recent all-time high near $5.30 now represents the key resistance level to watch. If shares can break above that level, it could open the door for another leg higher.

On the downside, support appears to be forming around the $4.80 to $5 range. This area previously acted as a consolidation zone earlier in the rally.

What is one broker saying?

Bell Potter currently has a buy rating on Elsight with a price target of $5.80.

Based on the current share price, the stock could deliver another 10% growth over the next 12 months.

Bell Potter believes Elsight's technology is well-positioned to benefit from rising global demand for unmanned systems. This demand is coming from both defence and commercial markets.

The post Elsight shares climb on rising defence demand. Can the rally continue? appeared first on The Motley Fool Australia.

Tensions between the United States, Israel, Iran, and Hezbollah intensified over the weekend. Iran reportedly launched waves of Shahed 136 one-way attack drones toward targets across the Gulf region, including the United Arab Emirates.

The escalation has pushed oil prices higher and put defence capability back at the centre of investor focus.

Here are 3 ASX defence stocks leading the charge.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 10.50% today to $4 apiece.

That brings its gains to roughly 24% over the past week.

DroneShield specialises in counter-drone detection and mitigation systems. Its technology is designed to identify, track, and disable hostile drones, including systems similar to the Shahed 136 platform reportedly used in recent attacks.

As drone warfare becomes more prominent, demand for anti-drone solutions has accelerated globally. Governments are reassessing defence readiness, particularly around critical infrastructure, airports, and military facilities.

The latest developments in the Middle East have only highlighted how relevant DroneShield's technology has become.

Elsight Ltd (ASX: ELS)

The Elsight share price is up 10.99% today to $5.25.

Even more striking, the stock has surged almost 50% in just 1 week.

Elsight provides secure connectivity solutions for drones and autonomous systems. Its Halo platform enables reliable data transmission across multiple communication networks, which is critical for military, emergency response, and unmanned operations.

As drone deployment expands across conflict zones, secure and uninterrupted connectivity becomes increasingly important. That longer-term shift appears to be driving renewed interest in the company.

However, after such a rapid move, volatility is likely to remain high in the near term.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is currently up 10.58% to $9.93. Earlier in the session, the stock was up more than 15%.

EOS shares are now up close to 40% over the past week.

The company recently announced it had secured a contract with a Middle Eastern country for its remote weapon systems (RWS). These systems are designed to deliver highly accurate defensive fire, including against drone threats.

In a region now experiencing live drone and missile attacks, that capability is clearly front of mind for defence planners. The timing of the contract has strengthened the view that EOS sits in a strategically important segment of the market.

Is it too late to buy?

History shows defence spending usually climbs when global tensions rise. And once governments lift budgets, they rarely reverse those decisions quickly.

Right now, drone warfare and counter-drone defence are at the forefront of modern conflicts.

All 3 stocks have surged in a matter of days. That reflects genuine shifts in global risk, but it also means expectations have moved quickly.

The real test will be execution. Can these companies convert stronger demand into sustained revenue growth and improve margins?

If tensions in the Middle East persist, these defence names could remain in favour. But after such rapid gains, investors should expect volatility and manage position sizes carefully.

The post These ASX defence stocks are rallying. Is it too late to buy? appeared first on The Motley Fool Australia.

But with its shares up around 350% during this time, the upside from here could be more limited than a year ago.

But don't worry because there's another ASX drone stock that could generate big returns between now and this time next year, according to Bell Potter.

Which ASX stock?

The stock that the broker is bullish on is Elsight Ltd (ASX: ELS).

It is a supplier of communication modules to drone OEMs. Bell Potter notes that the ASX stock offers advanced communication components for unmanned (aerial, ground and sea) systems through its flagship product, the Halo platform, which aggregates all available communication paths into one resilient, encrypted pipe for beyond visual line of sight (BVLOS) control, video and telemetry.

What is the broker saying?

Bell Potter highlights that Elsight delivered a full-year result that was a touch softer than expected. This was driven by higher than expected costs. It explains:

ELS (pre) reported revenue growth to $22.8m. Gross margin came in at 76.5% (BPe 76.3%). Opex of $9.6m was higher than BPe of $8.7m driven by stronger than expected share-based payments. Underlying EBIT was $7.5m (12% miss vs. BPe). ELS reported statutory NPAT of $7.5m which included favourable tax loss carry forwards offset partially by a $1.8m negative FX movement. Adjusting for these items, Underlying NPAT was $6.1m, $0.7m lower than BPe.

However, the broker remains positive and has still upgraded its earnings estimates for the coming years. It also believes that a further upgrade could be due in time. Bell Potter explains:

We have revised EBIT +22%/+11%/+1% over CY26/27/28e, reflecting a higher Hardware revenue growth rate in CY26e partially offset by higher opex assumptions. We have raised revenue on reduced conservatism with regard to the likelihood of repeat orders from the European drone defence OEM, ELS' key customer in CY25.

If the current pace of orders from this customer continues then our revenue forecast will likely be upgraded further. In turn, we acknowledge the level of customer concentration embedded in our forecasts and as a result have raised WACC to 12.0% (prev. 9.8%), to account for the inherent risks of customer concentration.

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX stock with an improved price target of $5.80 (from $5.50).

Based on its current share price of $4.51, this implies potential upside of almost 30% for investors over the next 12 months.

The broker concludes:

We believe ELS has developed a market leading product that is fully leveraged to the emerging use of unmanned systems in both a defence and commercial context. In CY26e, we expect ELS to be a beneficiary of downstream demand from global defence departments, supporting our 115% hardware sales revenue growth estimate.

The post Forget DroneShield shares, this ASX drone stock could rocket 30% appeared first on The Motley Fool Australia.

The move appears driven by a shift in global sentiment rather than any company-specific developments. Signs of easing tension in the Russia-Ukraine conflict have reduced near-term war risk, encouraging some investors to lock in profits across the defence sector.

Here is what is happening across 3 closely watched ASX defence tech stocks.

Electro Optic Systems Holdings Ltd (ASX: EOS)

EOS shares are lower today, trading around $8.49, down 6.19% at the time of writing.

The pullback follows an extraordinary run, during which the stock delivered some of the strongest gains on the ASX over the past year. That rally was driven by surging global defence spending and a rapidly expanding contract backlog.

With no fresh catalyst this week, some investors appear to be locking in gains.

Droneshield Ltd (ASX: DRO)

Droneshield shares are trading lower at around $3.28, down 8.63%.

The company remains well-positioned in the fast-growing counter-drone and electronic warfare market. Recent updates showed continued commercial momentum, but the market remains sensitive to expectations around profitability and cash flow timing.

Elsight Ltd (ASX: ELS)

Elsight shares are also weaker, changing hands at roughly $4.15, down a massive 15.65%.

This comes despite Elsight recently reporting record revenue and its first profitable quarter. The move highlights how sentiment can override fundamentals in the short term, particularly in smaller technology stocks.

Elsight has benefited directly from elevated defence and drone demand over the past year. That exposure also makes the share price more sensitive when investors perceive global conflict risk to be easing.

Are peace talks driving the move?

A key reason behind today's weakness appears to be the easing war risk in Europe.

Investors are reacting to signs that diplomatic efforts to end the Russia-Ukraine conflict may be gaining momentum. While no deal has been reached, the tone around negotiations has become more constructive in recent weeks.

Recent reporting points to ongoing talks among Russia, Ukraine, and the US, with a focus on a possible ceasefire and the foundations of a longer-term peace framework.

That said, major hurdles remain. Leaders involved in the talks have warned that issues around territory and long-term security guarantees are far from resolved. Fighting has also continued alongside negotiations, keeping the situation volatile.

Foolish Takeaway

Today's sell-off in ASX defence tech stocks looks more like a sentiment-driven pullback than a fundamental shift.

EOS, Droneshield, and Elsight all operate in areas with long-term demand tailwinds. However, after strong gains, even small signs of easing geopolitical tension can trigger profit-taking.

The key question now is whether peace talk optimism persists, or if rising global defence spending continues to support the sector.

The post What is driving today's sell-off in ASX defence tech stocks? appeared first on The Motley Fool Australia.

That's because analysts at Bell Potter think they are investment weapons with very bright futures. Here's what the broker is recommending:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The first ASX defence stock that Bell Potter is bullish on is defence and space company EOS.

Following the release of a stronger than expected fourth quarter update, the broker has retained its buy rating and $12.00 price target on the ASX defence stock.

As a market leader in C-UAS solutions, Bell Potter believes the company is well-placed to be a big winner from increased spending on these technologies. It explains:

We retain our Buy rating and raise our TP to $12.00. EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. We see positive news flow over the next 6 months stemming from C-UAS and RWS contract awards. At 44x CY26e EV / EBITDA, EOS trades at a 26% discount to the Global drone peer group mean.

Elsight Ltd (ASX: ELS)

Bell Potter is also feeling very positive about Elsight, which is a supplier of communication modules to drone original equipment manufacturers (OEMs).

In response to its quarterly update, the broker has retained its buy rating on the ASX defence stock with an improved price target of $5.50.

It believes that Elsight has developed a market leading product and is well-positioned to benefit from growth in the unmanned systems industry. It said:

We retain our Buy rating. We believe ELS has developed a market leading product that is fully leveraged to the emerging use of unmanned systems in both a defence and commercial context. In CY26e, we expect ELS to be a beneficiary of downstream demand from global defence departments, supporting our 70% hardware sales revenue growth estimate.

We believe ELS shares offer relative value at 37x CY26e EV/EBITDA given its recurring revenue, capital-light business model, relative valuation vs. other drone exposed stocks (42% discount to mean of global peers) and long runway of growth. We believe ELS can close this valuation gap via a broadening in its customer base (an estimated >80% of revenue generated from one customer in CY25e). We view ELS as a prime candidate for an OEM looking to vertically integrate.

The post Broker says these ASX defence stocks are investment weapons appeared first on The Motley Fool Australia.

At the time of writing, the Elsight share price is up 1.78% to $4.58, extending what has already been a stellar run. The stock is now up almost 50% this year, as momentum continues to build around its defence and connectivity platform.

Let's unpack the latest numbers from the report.

Record revenue caps a breakout year

According to the release, Elsight delivered its fourth consecutive quarter of record revenue, reporting quarterly revenue of US$9.3 million for the December quarter.

That took full-year FY25 revenue to US$22.8 million, representing an 11-fold increase year-over-year. The company said the result was driven by expanding deliveries, strong order conversion, and growing demand across defence and commercial markets.

Elsight also reported software-like gross margins of around 77%, highlighting the scalability of its platform as volumes increase.

Management said the business remains focused on top-line growth while accelerating investment in sales, marketing, and customer engagement to support multi-year expansion.

Order backlog provides clear visibility

One of the most encouraging takeaways from the update was Elsight's growing order backlog.

During the quarter, the company confirmed an order backlog of US$22 million, providing strong revenue visibility into 2026. That includes a US$21.2 million contract secured in December, covering deliveries for the first four months of the calendar year.

After the quarter end, Elsight also announced its first commercial purchase order for CY26, securing a US$460,000 order from a US public safety customer. Management said this highlights accelerating commercial adoption alongside regulatory progress in the US.

Cash flow swings into positive territory

Elsight also delivered a major financial milestone, reporting positive operating cash flow of US$8.2 million for the quarter.

Cash receipts for FY25 reached US$32.8 million, while cash at bank stood at US$59.4 million at 31 December.

The company noted that recurring revenue from software licences, cloud services, and subscriptions reached US$2.6 million in FY25, up 253% year-over-year and now accounting for 12% of total revenue.

US defence exposure continues to expand

Elsight continues to deepen its presence in the US defence market.

During the quarter, the company was selected by the US Defence Innovation Unit to advance to Phase 3 of Project GI, with fielding expected to conclude in the first half of 2026. Management also confirmed progress toward production readiness and procurement cycles.

At the same time, Elsight expanded its US footprint with senior sales and business development hires, while strengthening engagement across Europe and the Middle East.

Foolish takeaway

After a 46% run in a year, expectations are rising. But this update shows Elsight is scaling revenue, generating cash, and improving visibility.

For investors, the focus now shifts to whether Elsight can sustain this momentum as it scales into 2026.

The post Up 50% in 2026. This ASX tech stock just delivered another record quarter appeared first on The Motley Fool Australia.

Consistent geopolitical uncertainty and government investment have been catalysts for the sector. 

Many ASX defence stocks have benefited from these tailwinds. 

But for investors who have been hesitant to gain exposure, is there any further upside?

A new report from Bell Potter has identified two particular ASX defence stocks with plenty of room for more growth. 

Let's see what the broker had to say. 

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems is an Australian company that develops and produces advanced electro-optic technologies. 

The company's products are used in space information and intelligence services, optical, microwave and on-the-move satellite products, optical sensor units, and remote weapons systems for land, sea, and air.

Its share price has already rocketed 740% higher in the last 12 months. 

But the team at Bell Potter is optimistic the company can continue to grow following a new acquisition. 

In a report from the broker yesterday, Bell Potter said EOS has entered into an agreement to acquire MARSS.

MARSS is a Europe-based command and control ("C2") systems, which are critical for effectively countering drones. 

C2 and software/AI capabilities have been an obvious gap in EOS' counter-drone (CUAS) offering. The acquisition of a C2 capability bolsters EOS's chances in securing prime contractor status on large C-UAS programs thus potentially boosting sales of EOS' other C-UAS effectors, including High Energy Laser Weapons; Slingers; and Interceptor Drones. C2 systems also offer recurring revenues.

Following this news, Bell Potter upgraded EPS +1%/+15% in CY26/27e, reflecting: consolidation of the MARSS Group acquisition in 2H26e; updated cash balance; and higher effector sales in CY27e.

The broker has also raised its price target on this ASX defence stock to $12.00 per share. 

From yesterday's closing price of $10.09, this indicates an upside of 18.93%. 

At 43x CY26e EV/ EBITDA, EOS trades at a 40% discount to the Global drone peer group mean.

Elsight Ltd (ASX: ELS)

Elsight is engaged in the development and commercialisation of Halo in the UAV market. Elsight's Halo provides BVLOS (Beyond the Visual Line of Sight) connectivity for drones, UAVs, and other unmanned/uncrewed systems on-air and on land.

This ASX defence stock is up 990% in the last 12 months. 

Bell Potter just upgraded its outlook, indicating there is still more upside. 

The broker said it has upgraded longer term revenue growth assumptions due higher confidence in commercial drone market growth and revenue growth following the commercial launch of the new Aura platform.

Bell Potter has an upgraded price target of $4.60 (previously $3.60). 

From yesterday's closing price, this indicates an upside of $3.87, this indicates an upside of 18.86%. 

We believe ELS has developed a market leading product that is fully leveraged to the emerging use of unmanned systems in both a defence and commercial context. In CY26e, we expect ELS to be a beneficiary of downstream demand from global defence departments, supporting our 70% hardware sales revenue growth estimate.

The post ASX defence stocks to target according to Bell Potter appeared first on The Motley Fool Australia.

The drone connectivity specialist is extending its rally today as buying momentum continues to build.

At the time of writing, Elsight shares are up 5.51% to $4.02. Earlier in the session, the stock briefly touched $4.03, the highest level it has ever traded.

The move caps off an extraordinary run. Elsight shares are up almost 45% over the past month and more than 1,032% over the past year, making it one of the strongest performers on the ASX.

What does Elsight do?

Elsight is a technology company focused on secure communications for drones and unmanned systems.

Its core product, called Halo, allows drones to stay connected over long distances by combining multiple networks, including cellular, satellite, and radio links, into one stable connection.

This type of technology is critical for drones used in defence, public safety, industrial inspections, and emergency services. It allows drones to fly beyond the operator's line of sight while maintaining reliable control and live data feeds.

Strong momentum behind the scenes

Over the past year, Elsight has delivered a string of positive updates, including growing customer adoption, expanding international partnerships, and improving financial performance.

The company reported record revenue in 2025 and also reached cash flow positive, marking an important milestone.

Recent contract wins, particularly in the US and Europe, have helped reinforce confidence that Elsight's technology is gaining real commercial traction.

Management buying shares sends a clear signal

Over the past year, multiple Elsight directors have bought shares on market, often at prices well below current levels. These purchases have not been one-off trades, but a series of repeat buys across different points in the rally.

Most recently, Executive Director David Furstenberg and non-Executive Chairman Ami Shafran both bought 20,425 shares each in early February 2025 at around 36.8 cents per share. Earlier purchases were also made throughout 2024, with directors buying shares in the 30 to 50 cent range, long before the stock's recent surge.

Non-Executive Director Howard Digby has also been an active buyer, adding shares on several occasions during 2024 at prices between 35 cents and 44.5 cents.

Keep in mind that this buying activity stands out given how much the share price has since risen.

What investors should keep in mind

Despite the impressive gains, Elsight remains a small, fast-growing tech stock, and that comes with risk.

The share price has moved very quickly, so periods of volatility should be expected. The company is also not widely covered by major brokers, meaning sentiment can shift sharply on news flow.

Still, the broader outlook is hard to ignore. With drone usage expanding globally and secure connectivity becoming essential, Elsight appears well placed in a growing market.

The post This ASX drone tech stock just hit a record high. Here's why investors are piling in appeared first on The Motley Fool Australia.

President Trump said that the 2027 US defence budget should be US$1.5 trillion, well above the US$901 million so far approved.

Unsettled times ahead

Mr Trump said in a post to social media site Truth Social that he had determined that military spending needed to be increased "in these very troubled and dangerous times".

He added:

Our military budget for the year 2027 should not be $1 trillion dollars, but rather $1.5 trillion dollars. This will allow us to build the 'Dream Military' that we have long been entitled to and, more importantly, will keep us SAFE and SECURE, regardless of foe.

Mr Trump also credited an increase in revenue from his tariff measures as allowing the substantial increase in military spending to take place.

US defence stocks such as Northrop Grumman and Lockheed Martin increased substantially following the comments, although both were coming off weakness in the previous session.

Closer to home shares in Austal Ltd (ASX: ASB), DroneShield Ltd (ASX: DRO) and Elsight Ltd (ASX: ELS) were higher in early trade on Friday.

Austal has significant facilities in the US and could stand to benefit from an increase in US defence spending.

It has a shipyard in Mobile Alabama where it is working on the construction of a new surface ship assembly building which is on track for completion in 2027.

The company's website says it has delivered 34 ships to the US Navy since 2009.

Austal also has production facilities in Australia, the Philippines and Vietnam.

DroneShield has significant business in the US, announcing in November that it had been awarded three contracts worth $7.6 million for counter-drone packages, with those contracts to be fulfilled in 2025 and payments to come in by the end of the current quarter.

The company said at the time it was looking to greatly expand in both Europe and the US by the end of 2026, "including commencement of European and US-based assembly plants''.

Elsight also has US interests, announcing just this week that it had received a $682,000 order from a US commercial customer in the public safety sector.

Austal shares were 2.9% higher at $8.03 on Friday morning. DroneShield shares were up 1.8% at $3.92 and Elsight shares were 2.9% higher at $3.57.

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Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Ansell Ltd (ASX: ANN)

The Ansell share price is down over 6% to $33.28. Investors have been selling this health and safety products company's shares after it announced the exit of its CEO. Ansell revealed that Neil Salmon has decided to retire after 13 years with the company. Replacing Salmon will be Nathalie Ahlstrom, who brings strong global experience having served until recently as CEO and President of the Fiskars Group. Commenting on the appointment, Ansell's chair, Nigel Garrard, said: "We are delighted to appoint Nathalie as Ansell's next Managing Director and CEO. Nathalie brings exceptional leadership experience, a track record of delivering results in complex global markets, and a deep understanding of innovation and operational excellence."

Elsight Ltd (ASX: ELS)

The Elsight share price is down almost 3% to $3.48. This morning, this global provider of resilient connectivity solutions for unmanned systems announced a new contract win with a U.S.-based commercial customer in the public safety sector. However, the value of the contract is only US$460,000 (A$682,000). Though, Elsight's CEO, Yoav Amitai, believes it is a positive signal. He said: "We see this as an early indicator of accelerating commercial momentum driven by regulatory progress in parallel to the continued growth in the defence market."

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is down almost 3% to $4.14. This follows the release of a quarterly update from the gold miner. Ramelius reported gold production of 45,610 ounces for the three months. This was down 17% from 55,013 ounces in the previous quarter. The company also posted underlying free cash flow of $67 million for the three months, which was down from $129 million in the first quarter. Management believes it is positioned to meet its FY 2026 guidance of 185,000 ounces to 205,000 ounces.

SGH Ltd (ASX: SGH)

The SGH share price is down 2% to $48.01. This has been driven by news that BlueScope Steel Ltd (ASX: BSL) has rejected its takeover proposal. The company's chair, Jane McAloon, said: "Let me be clear – this proposal was an attempt to take BlueScope from its shareholders on the cheap. It drastically undervalued our world-class assets, our growth momentum, and our future – and the Board will not let that happen. This is the fourth time we've said no, and the answer remained the same – BlueScope is worth considerably more than what was on the table."

The post Why Ansell, Elsight, Ramelius, and SGH shares are falling today appeared first on The Motley Fool Australia.

At the time of writing, the ASX drone technology stock is down 0.83% to $3.55, after touching a record high yesterday. In comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.1%.

Despite the pullback, the recent run in Elsight shares has been very strong, including a sharp rally over the past month.

So, what did the company announce?

A meaningful US order

According to the release, Elsight revealed it has secured a US$460,000 purchase order from a US public safety customer.

This is an important step for the company because it is the first commercial order announced for 2026. It also shows that customers outside the defence sector are now buying its technology.

The order relates to drones that can fly beyond the operator's line of sight, which allows them to cover much larger areas. This type of operation is becoming increasingly useful for emergency services, search and rescue, and monitoring large infrastructure.

Why this matters for the future

At the moment, many drone flights in the US are restricted by regulation. However, the US aviation regulator is in the process of updating its rules to allow more routine long-distance drone flights.

Elsight said these changes are moving forward and could be finalised next year. Clearer rules would make it easier for organisations to use drones more widely and with greater confidence.

When that happens, demand for reliable communication systems that keep drones connected at all times is expected to increase.

What does Elsight actually sell?

Elsight's core product is called Halo. It keeps drones connected by using several networks at once to create a more reliable signal.

This is especially important for drones used in emergency situations, where losing connection is not an option. That makes Elsight's technology attractive for public safety and other critical services.

The company believes public safety could be one of the first big commercial markets to adopt long-distance drone flights.

What the market is signalling

With shares up almost 1,000% over the past year, expectations are clearly much higher.

Today's order adds to signs that Elsight's technology is moving beyond trials and into real customer use. The market appears to be responding to steady progress toward regular commercial sales.

For me, this ASX defence stock remains firmly on the watchlist, along with Electro Optic Systems Holdings Ltd (ASX: EOS).

The post This ASX tech stock is in focus after fresh US news appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are starting the year positively:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is up a further 15% to $4.51. Investors have been fighting to get hold of this respiratory imaging technology company's shares in recent weeks. This has been driven by the announcement of a commercial arrangement for the clinical use of its CT:VQ platform with United States-based Cleveland Clinic. CT:VQ is a CAT scan-based ventilation-perfusion software. Commenting on the contract win, 4DMedical's CEO, Andreas Fouras, said: "In just over three months since FDA clearance, we've established CT:VQ at three of America's leading academic medical centres: Stanford, University of Miami, and Cleveland Clinic. This rapid adoption by elite institutions demonstrates the compelling clinical and operational advantages of CT:VQ over traditional nuclear VQ imaging."

Elsight Ltd (ASX: ELS)

The Elsight share price is up 11% to $3.43. This morning, the uncrewed systems connectivity platform provider released an update on its strategic development program with a leading defence prime contractor. Elsight revealed that it has moved its Aura platform out of the development phase and has commenced the delivery of the initial batch of units ordered under the first phase of the program. The company's CEO, Yoav Amitai, said: "Completing the development phase of Aura and moving into delivery is an important execution milestone for this program. In parallel, we are investing deliberately in the U.S. market, both through senior hires and through close engagement with government and OEM partners."

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is up 5% to $1.81. This follows the release of an update from the small business lender. Judo Capital revealed that its unaudited closing balance for gross loans and advances (GLAs) at 31 December was approximately $13.4 billion. Judo's CEO, Chris Bayliss, said: "We are pleased to have delivered strong loan growth in the first half of FY26, in line with our expectations. Our relationship-led value proposition continues to resonate with SME customers, and we are seeing good momentum across our business." Management also reaffirmed its profit guidance for FY 2026.

Nickel Industries Ltd (ASX: NIC)

The Nickel Industries share price is up over 7% to 89.7 cents. This morning, this nickel producer revealed that Sphere Corp has agreed to acquire a 10% interest in the ENC HPAL project at a US$2.4 billion valuation. Sphere is a South Korean premium alloy and precision materials manufacturer for the global aerospace industry.

The post Why 4DMedical, Elsight, Judo, and Nickel Industries shares are pushing higher today appeared first on The Motley Fool Australia.

In morning trade, the ASX drone stock is up 9% to a new record high of $3.36.

Why is this ASX drone stock jumping?

Investors have been fighting to get hold of the uncrewed systems connectivity platform provider's shares following the release of an update on its strategic development program with a leading defence prime contractor.

According to the release, in addition to its uncrewed systems applications, the company's strategic development program has led to the development of a communications device (Aura), which has been designed with the flexibility to support dismounted and soldier-level communications use cases.

Management notes that this significantly expands the potential addressable market beyond Elsight's current core unmanned systems markets and opens additional defence and security application pathways.

It highlights that the strategic development program was structured to progress through defined development, validation, and delivery milestones.

Following the completion of the development and qualification process, it is now transitioning from development into production. This has seen the ASX drone stock commence the delivery of the initial batch of Aura units ordered under the first phase of the program.

US expansion

In addition, Elsight revealed that as part of its ongoing strategy to expand its on-the-ground presence in the United States, it has signed two senior sales and business development executives. They will begin working this month.

It highlights that both appointments bring extensive experience and working contacts with U.S. Department of Defence programs. This includes backgrounds in special forces units and proven track records in supporting U.S. government and defence procurement processes.

Management expects these executives to accelerate the conversion of existing U.S. opportunities that are already in the pipeline, while also generating new opportunities across defence and government channels.

Commenting on the news, the ASX drone stock's CEO, Yoav Amitai, said:

Completing the development phase of Aura and moving into delivery is an important execution milestone for this program. In parallel, we are investing deliberately in the U.S. market, both through senior hires and through close engagement with government and OEM partners. We are confident in our alignment with U.S. regulatory frameworks and remain focused on executing against the growing opportunity set in this market.

Following today's gain, Elsight shares are now up approximately 330% since this time last year.

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On the flip side, it's been a tough year for Australian technology and healthcare shares. 

The S&P/ASX All Technology Index (ASX: XTX) has dropped almost 11% in 2025, including more than 20% since October. 

Similarly, the S&P/ASX 200 Health Care Index (ASX: XHJ) is down more than 24% since January. 

But amidst these struggling sectors have been some diamonds in the rough. 

Let's look at some of the winners from these two sectors in 2025. 

Healthcare winners

One of the best performing ASX shares in 2025 has been 4DMedical Ltd (ASX: 4DX). 

The medical technology company works in the field of respiratory imaging and ventilation analysis in the treatment of lung and respiratory diseases.

The Motley Fool's Aaron Teboneras reported earlier this month on the consistent run of positive results and milestones hit by the company this year. 

Regulatory approvals and new commercial partnerships have expanded its markets and validated its technology, shifting investor views from speculative potential to increasingly visible and growing software revenue.

This has launched the stock almost 680% higher in 2025. 

Despite this unbelievable run, it's still drawing optimism for future growth.

Another healthcare stock winner this year has been Racura Oncology Ltd (ASX: RAC). 

It is an Australian clinical-stage biopharmaceutical company focused on developing cancer treatments.

It has risen almost 100% in 2025, meaning investors almost doubled their returns holding this stock through the year. 

This has been driven by promising scientific research and private placement offers.

Technology winners

Meanwhile, in the technology sector, one of the best-performing ASX shares has been Elsight Ltd (ASX: ELS). 

The company technically sits in the information technology sector, but has risen thanks to tailwinds in the defence sector. 

The company offers advanced communication components for unmanned systems (aerial, ground, and sea) through its flagship product – the Halo platform. 

Its rise has been fuelled by major contract wins, including a US$21.2M contract for CY2026. 

CY25e also marked a pivotal inflection point for the company, achieving profitability and delivering estimated revenue growth of 12x YoY (BPe). 

Its share price has risen by more than 750% this year. 

Finally, another technology stock that has enjoyed a stellar year is Energy One Ltd (ASX: EOL). 

It is a supplier of software products and services to wholesale energy, environmental, and carbon trading markets.

It reported strong growth in the 2025 financial year, reporting revenue growth of 17% to $61.4 million and annual recurring revenue (ARR) rising 22% to $60.4 million.

Its share price is up more than 150% this year. 

The post Why did these ASX shares outperform their peers in 2025? appeared first on The Motley Fool Australia.

For investors looking to gain exposure to this sector, in an environment where defence spending is increasing both at home and abroad, there are three main companies to have a look at.

DroneShield Ltd (ASX: DRO)

The best known stock in the sector listed on the ASX is unarguably DroneShield, which is heavily traded and a favourite among share market speculators.

The company's shares have had a wild ride over the past year, increasing from lows of 58.5 cents to as much as $6.70 before crashing back below the $3 level in recent months.

The shares have made a recovery in December after investor confidence was shaken by major share sales among its executives, as well as the company's gaffe in announcing a contract to the ASX which had already been announced.

Bell Potter Securities' Christopher Watt, quoted in The Bull recently, said he had a hold recommendation on the stock, saying it had short-term headwinds, while its fundamentals were "sound".

Elsight Ltd (ASX: ELS)

Elsight is a key supplier of communication modules to drone manufacturers.

The company in mid-December announced that it had won contracts worth more than US$20 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".

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.

Elsight shares are up more than 10-fold over the year to $3.17, which might mean it's time for caution, with Bell Potter's most recent price target for the shares well below that at $2.

Electro Optic Systems Ltd (ASX: EOS)

Electro Optic Systems has also had some recent contract wins, announcing in mid-December a new international contract worth $32 million for its R400 Remote Weapon System.

This built on a $125 million contract win in August for a high energy laser weapon and another R400 order worth $108 million in October.

Bell Potter said in a note to clients that, "we see upgrade potential to our revenue estimates, driven by increasing global capital allocation toward counter drone capabilities''.

Bell Potter has a price target of $8.10 on EOS shares compared with $8.82 currently.

The post If you think drones are the future of defence, these three ASX stocks might be for you appeared first on The Motley Fool Australia.

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''.

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.

The post This 10-bagger drone technology company has just won a lucrative new defence contract appeared first on The Motley Fool Australia.

But which ones should you be buying right now? Let's take a look at what Bell Potter is saying about the industry and its recommendations.

What is the broker saying?

Bell Potter notes global defence strategy is at a structural junction, with demand for drones and counter drone solutions growing rapidly. It said:

Global defence strategy is undergoing a structural pivot, driven by the proliferation of low-cost, high-lethality unmanned systems in recent conflicts. This rise of asymmetric warfare has exposed the economic inefficiency of traditional air defence, creating an urgent mandate for "attritable" drones and cost-effective counter-measures. We view the twin themes of resilient drone connectivity and counter-drone solutions as key drivers of defence procurement for the coming cycle.

Which ASX defence stocks are buys?

The first ASX defence stock that the broker is recommending is Elsight Ltd (ASX: ELS).

However, with a price target of $2.00 and a share price of $2.65, investors may want to wait for a better entry point.

Commenting on the supplier of communication modules to drone manufacturers, the broker said:

CY25e marked a pivotal inflection point for ELS, with the company achieving profitability and delivering estimated revenue growth of 12x YoY (BPe). We enter CY26e viewing Halo as a market-leading enabler of BVLOS connectivity for unmanned systems. Accordingly, we forecast a 41% revenue CAGR over CY25-28e, driven by the rapid proliferation of unmanned systems across both defence and commercial verticals.

Another ASX defence stock that gets a big thumbs up from Bell Potter is space and defence company Electro Optic Systems Holdings Ltd (ASX: EOS).

The broker believes the massive $125 million contract award for a High Energy Laser Weapon earlier this year gives it a first-mover advantage in the market. It said:

Following the landmark A$125m award for the world's first export of a 100kw High Energy Laser Weapon (HELW) in August 2025, EOS has secured a first-mover advantage in the high-value HELW counter-drone vertical. Looking ahead to 2026, we see upgrade potential to our revenue estimates, driven by increasing global capital allocation toward counterdrone capabilities. Specifically, we anticipate the advancement of HELW contracts (>1 unit) through the sales pipeline alongside continued awards for conventional and counter-drone RWS.

Bell Potter has a buy rating and $8.10 price target on its shares. This is notably higher than its current share price of $5.01.

The post Bell Potter names the best ASX defence stocks to buy appeared first on The Motley Fool Australia.

This has been influenced by ongoing geopolitical tension, which has prompted governments to spend more on their defence sector. 

This includes development of technology such as drones, AI or electronic warfare. It also includes equipment such as missiles or submarines. 

Australia is included in this defence spending push. 

In March this year, the Australian government announced it was investing an additional $50.3 billion into the Australian Defence Force (ADF).

Yesterday, the team at Bell Potter released a report including analyst outlooks and stock picks for December 2025. 

In the report, Baxter Kirk, Industrials Analyst, said global defence strategy is undergoing a structural pivot, driven by the proliferation of low-cost, high-lethality unmanned systems in recent conflicts. 

This rise of asymmetric warfare has exposed the economic inefficiency of traditional air defence, creating an urgent mandate for "attritable" drones and cost-effective counter-measures. 

We view the twin themes of resilient drone connectivity and counter-drone solutions as key drivers of defence procurement for the coming cycle.

The report also included two ASX defence stocks with buy recommendations.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The company is a provider of counter-drone solutions, remote weapon systems (RWS), and space control technologies. 

Its stock price has already risen by 266.41% in 2025. 

According to Bell Potter's report, following the landmark A$125m award for the world's first export of a 100kw High Energy Laser Weapon (HELW) in August 2025, EOS has secured a firstmover advantage in the high-value HELW counter-drone vertical. 

Looking ahead to 2026, the broker said it sees upgrade potential to revenue estimates, driven by increasing global capital allocation toward counterdrone capabilities. 

Specifically, Bell Potter anticipates the advancement of HELW contracts (>1 unit) through the sales pipeline alongside continued awards for conventional and counter-drone RWS.

As well as a buy recommendation, Bell Potter has a price target of $8.10 on this ASX defence stock. 

From yesterday's closing price of $4.80, this indicates a further upside of 68.75%. 

Elsight Ltd (ASX: ELS)

Elsight is a key supplier of communication modules to drone manufacturers. 

Its flagship product, Halo, integrates multiple communication pathways (5G, LTE, SATCOM, RF) into a single resilient, encrypted data link, functioning as a mission-critical enabler for Beyond Visual Line of Sight (BVLOS) operations. 

According to Bell Potter, CY25e marked a pivotal inflection point for ELS, with the company achieving profitability and delivering estimated revenue growth of 12x YoY (BPe). 

We enter CY26e viewing Halo as a marketleading enabler of BVLOS connectivity for unmanned systems. Accordingly, we forecast a 41% revenue CAGR over CY25-28e, driven by the rapid proliferation of unmanned systems across both defence and commercial verticals.

Elsight has risen by 473.68% already in 2025. 

The broker has a price target of $2.00 along with a buy recommendation. 

This indicates this ASX defence stock is trading close to fair value or slightly over at $2.18. 

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