DroneShield lands $23.2M European military deal as revenue jumps 74%

• DroneShield (ASX:DRO) has secured A$23.2 million in European military contracts and released a new RF detection engine alongside a trading update.
• The company expects 1H 2026 revenue of A$125.8 million, up 74% on the prior period, with FY2026 committed revenue at A$206 million.
• DroneShield now forecasts FY2026 revenue of A$250–270 million, supported by next‑generation hardware and subscription growth.

DroneShield (ASX:DRO) has received A$23.2 million in contracts from reseller COBBS BELUX BV for vehicle‑mountable counter‑drone systems for a European military customer, launched its RfAI‑3 RF detection engine, and issued a trading update for 1H 2026.

The A$23.2 million package covers hardware, subscriptions, warranties and services, with about A$21 million to be recognised as FY2026 committed revenue and the balance as future subscription income.

"We are pleased to continue our engagement with leading partners and end-customers in Europe, which is a key growth market for DroneShield…" said DroneShield CEO and Managing Director Angus Bean.

DroneShield’s new RfAI‑3 engine is designed to detect drone RF emissions beyond existing signature libraries, and is built for next‑generation hardware expected to roll out from the second half of 2026 into 2027, while existing products remain supported under subscription models.

DroneShield expects FY2026 revenue of A$250–270 million, 15–25% higher than FY2025, and is targeting a blended gross margin around 65%, supported by upcoming proprietary hardware and growing subscription revenue.

As at 28 July 2026, DroneShield’s FY2026 committed revenue stands at A$206 million and committed revenue for FY2027 and beyond is A$26 million, but the company also notes that additional short‑notice contracts could alter this profile.