Why are DroneShield shares racing higher again today?

DroneShield Ltd (ASX: DRO) shares are having a strong session ahead of the Christmas break.

In morning trade, the counter drone technology company’s shares are storming 6.5% higher to $3.48.

This compares favourably to the S&P/ASX 200 index, which is down 0.4% at the time of writing.

Why are DroneShield shares storming higher?

Investors have been fighting to get hold of the company’s shares after it announced its second major contract win in as many weeks.

As a reminder, last week DroneShield announced that it received a contract worth $49.6 million. It was from an in-region European reseller that is contractually required to distribute the products to a European military end-customer.

Management advised that the contract was for handheld counter-drone systems, associated accessories, and software updates.

As DroneShield has a large portion of this stock available already, it expects to complete all deliveries in the first quarter of 2026.

What’s the latest contract?

This morning, DroneShield announced that it has received a standalone contract for $6.2 million from an in-country reseller for delivery to a military end-customer in an Asia Pacific country.

It notes that the reseller is a wholly-owned subsidiary of a multi-billion dollar, global, publicly listed customer that is contractually required to distribute solutions to a major Asia Pacific military government department.

DroneShield advised that the solutions include selected 3rd party hardware, interoperable with DroneShield’s command-and-control software platform, DroneSentry-C2.

DroneSentry-C2 is an advanced command-and-control (C2) platform that delivers a unified, real-time counter-drone operating picture. It has been designed for seamless interoperability with DroneShield sensors and third-party systems, and enables precise detection, tracking, and response to drone threats.

Management expects to complete this delivery and receive payment in 2026. No additional material conditions need to be satisfied.

This isn’t the first order from this reseller. It highlights that it has previously received 14 standalone contracts from this reseller over the past 2 years totalling over $48 million. Though, it warns that there is no obligation for any additional contracts from this customer.

Commenting about the decision not to name its multi-billion dollar, global, publicly listed customer, the company stated that “it does not consider the identity of the counterparty/customer to be information that a reasonable person would expect to have a material effect on the price or value of DroneShield’s securities.”

Following today’s gain, DroneShield shares are now up by almost 100% since this time last month.

The post Why are DroneShield shares racing higher again today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.