Up 246% in a year, here’s why the Droneshield share price is racing higher again today

The Droneshield Ltd (ASX: DRO) share price is leaping higher today.

Again.

Shares in the All Ordinaries Index (ASX: XAO) drone defence company closed yesterday trading for 89 cents. In morning trade on Wednesday, shares are changing hands for 97 cents apiece, up 9.0%.

That sees the Droneshield share price up an eye-watering 246% since this time last year, when you could have bought shares for 28 cents.

For some context, the All Ords is up 0.2% today and up 8% over 12 months.

Here’s what’s got ASX investors excited about the drone defence stock today.

Droneshield share price soars on US government contract

The Droneshield share price is flying high today after the company reported it has received a $5.7 million repeat order from a United States government customer.

The order involves Droneshield’s Counter-UxS systems. This is a counter-drone system capable of targeting multi-domain aerial, ground and maritime surface drones.

Management expects the repeat US government order, which covers multiple Droneshield product lines, to be completed in several stages throughout the remainder of 2024.

Commenting on the new order sending the Droneshield share price soaring today, US CEO Matt McCrann said:

As the drone threat continues to evolve and proliferate across domains in modern conflicts, we are honoured to support the US Government and our allies as they look to meet the growing need for advanced Counter-UxS solutions.

We value our partnership and look forward to continuing to support our troops and partners wherever possible.

Tom Branstetter, Droneshield’s director of business development, added:

Our comprehensive product portfolio paired with high-level manufacturing affords us the ability to rapidly outfit U.S. and partner nations with lifesaving technology, while also addressing a wide range of operational requirements.

It’s a privilege to assist the US government and our allies in strengthening security both at home and abroad.

What’s been happening with the ASX tech stock?

The stellar performance of the Droneshield share price over the past year has been supported by some equally strong growth figures.

At its most recent quarterly results, released on 15 April, the company reported $16.4 million in revenue for the three months. That’s 900% more than the $1.6 million of revenue in the prior corresponding period.

And the company’s balance sheet is strong. As at 31 March, Droneshield held $56.4 million in a cash with no debt.

As for what could impact Droneshield moving forward, the company reported a $27 million contracted backlog along with an impressive sales pipeline of more than $519 million.

The post Up 246% in a year, here’s why the Droneshield share price is racing higher again today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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. 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.