Droneshield Ltd (ASX: DRO) shares are soaring in morning trade on Thursday. At the time of writing, the drone operator’s stock is up 8.26% to $3.67 a piece. The increase comes on the back of a new contract announcement out of the company, posted ahead of the ASX opening this morning.
The latest uptick means the shares have climbed 9.31% year to date and are now a huge 328.24% higher than this time last year.
What did Droneshield report this morning?
In a note to the ASX, Droneshield announced that it has secured six standalone contracts, valued at $21.7 million, via an in-country reseller for delivery to a Western military end customer.Â
The contracts are for the supply of dismounted counter-drone systems, spare kits, and software subscriptions.
The company said that all items are readily available from its existing inventory and that delivery is expected in the first quarter of 2026, with payment expected in the second quarter of 2026.Â
Droneshield confirmed that the reseller is a wholly owned subsidiary of a multi-billion-dollar, publicly listed, global company that is required to distribute the products to the end customer.Â
Over the past seven years, prior to this contract, DroneShield has received 39 contracts from this reseller, totalling over $17.8 million. There are no obligations for any additional contracts from this reseller or end customer.
What’s next for the defence stock this year?
The news comes on the back of the company’s full-year earnings results for FY25, which it posted yesterday. It announced an impressive 276% revenue uplift for the 12 months to 31st December, and its EBITDA came in at $4.5 million, up from a loss of $8.6 million in 2024.Â
In its announcement yesterday, the company said it has a $2.3 billion sales pipeline, up 92% from the last 12 months.
DroneShield also said it is scaling up its production capacity from $500 million a year in 2025 to $2.4 billion by the end of 2026, via new facilities in Australia, the United States, and Europe.
What do analysts think of Droneshield shares?
According to TradingView data, analysts currently have a consensus strong buy rating on Droneshield shares. They also agree on a target price of $5 a piece over the next 12 months. That implies a 36.99% upside for investors at the time of writing.
The post Why are Droneshield shares flying 8% higher today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Samantha Menzies 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.