DroneShield share price shoots 6% on new record order

The DroneShield Ltd (ASX: DRO) share price is on fire today after the company announced a record new order.

This well-timed release comes after the defence contractor’s shares fell almost 20% yesterday to close at a six-month low of 16.5 cents.

At the time of writing, DroneShield shares are trading at 17.5 cents apiece, up 6.06%.

DroneShield locks in $2 million European order

DroneShield released an announcement earlier this morning advising that it had received a record $2 million order for multiple DroneSentry fixed site detect-and-defeat systems.

The package consists of sensors, radars, electronic warfare, electro-optics systems, ID, and tracking.

DroneShield said the order is from a European government customer and is the biggest contract it’s had in the European market.

The bulk of the $2 million order is expected to be made in the current September 2022 quarter, with the remaining amount due when the system is installed. This is anticipated to be finalised by the end of the year.

Commenting on the news that appears to be boosting the DroneShield share price, CEO Oleg Vornik said:

This order continues our progression from developing the tech, to smaller sales, to repeat smaller size, to presently realising larger contracts. There is a substantial near-term sales pipeline in place, and we are pleased to start converting it into contracts.

This contract reinforces our position that to be a global leader in the rapidly growing counterdrone sector, a full suite of products is critical, including handheld, vehicle and fixed site offering, as we are seeing sales with separate customer sets for each of those complementary products.

Other recent updates

Yesterday, DroneShield delivered its half-year results to the market, which disappointed investors, sending its shares significantly lower.

The company reported a fall across key financial metrics despite the highly favourable macro environment.

Nonetheless, DroneShield remains focused on tapping into the US$10 billion counter-drone market.

The company has a $350 million global sales pipeline, including $100 million in projects from here until the end of 2022.

How has the DroneShield share price tracked in 2022?

The DroneShield share price has backtracked 3% in 2022 and is down around 17% over the past 12 months.

The share did reach a 52-week high of 30 cents on 3 May, before pulling back in the following weeks.

Based on today’s price, the company presides a market capitalisation of $71.37 million.

The post DroneShield share price shoots 6% on new record order appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in September 2022
• Droneshield share price plunges 19% on revenue slump
• DroneShield share price lifts 6% on record government grant

Motley Fool contributor Aaron Teboneras has positions in DroneShield Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield Ltd. 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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