DroneShield Limited (AU:DRO)
ASX:DRO
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DroneShield Limited
(Sydney:DRO)
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Rating:60Neutral
Price Target:
AU$3.50
▼(-3.05% Downside)
Action:ReiteratedDate:04/09/26
The score is primarily supported by improved financial performance in 2025 (sharp revenue growth, return to net profitability, and low leverage). It is held back by weak near-term technical positioning (trading below key moving averages with subdued momentum) and a very expensive valuation (P/E ~806) with no dividend yield provided.
Positive Factors
Conservative balance sheet / low leverage
A very low debt-to-equity (~0.08) and a substantial equity base provide durable financial flexibility for bidding on defense contracts, funding deployments, and absorbing program timing. This reduces refinancing risk and supports multi-month procurement cycles common in government sales.
Negative Factors
Material gross margin compression
A sharp fall in gross margin from ~72% to ~50% suggests adverse mix, pricing pressure, or higher direct costs. Persistently lower margins reduce the cash available to fund R&D, service operations, and international expansion, weakening long-term profit resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
A very low debt-to-equity (~0.08) and a substantial equity base provide durable financial flexibility for bidding on defense contracts, funding deployments, and absorbing program timing. This reduces refinancing risk and supports multi-month procurement cycles common in government sales.
Read all positive factors
DroneShield Limited (DRO) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.49B
Dividend YieldN/A
Average Volume (3M)17.83M
Price to Earnings (P/E)806.2
Beta (1Y)1.99
Revenue Growth276.41%
EPS GrowthN/A
CountryAU
Employees60
SectorIndustrials
Sector Strength72
IndustryComputer Hardware
Share Statistics
EPS (TTM)<0.01
Shares Outstanding923,102,660
10 Day Avg. Volume15,842,799
30 Day Avg. Volume17,829,536
Financial Highlights & Ratios
PEG Ratio-2.96
Price to Book (P/B)8.43
Price to Sales (P/S)13.11
P/FCF Ratio307.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.80Price Target Upside32.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.06
Revenue Forecast (FY)AU$331.71M
DroneShield Limited Business Overview & Revenue Model
Company Description
DroneShield Limited engages in the development, commercialization, and sale of hardware and software technology for drone detection and security worldwide. Its products include DroneGun Tactical, a countermeasure against a range of drone models; D...
How the Company Makes Money
DroneShield makes money primarily by selling counter-drone products and systems and providing associated software and services to customers seeking protection against drone threats. Key revenue streams include: (1) Sales of hardware equipment used...
DroneShield Limited Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: substantial YoY revenue/cash receipt growth (~4x), accelerated SaaS revenue (from ~$3M to ~$12M with >$18M locked for 2026), a large $2.1B pipeline, high gross margins (~65%), significant R&D investment ($70M+), operational reliability and manufacturing scale plans. Offsetting risks are a trimmed near‑term pipeline driven by conservative assumptions in the U.S. civilian market (pipeline down ~12.5%), timing dependency on U.S. budget/IDIQ processes, pending profit detail, executive stock sales that attracted scrutiny, and continued high fixed investments. Overall, the highlights materially outweigh the lowlights given the magnitude of revenue and backlog growth, balance‑sheet strength and clear product differentiation, supporting a positive outlook.Positive Updates
Substantial Revenue and Cash Receipts Growth
Reported about $202 million in customer cash receipts and described top-line results as roughly just under 4x the prior year (approximately a multi‑hundred percent YoY increase). The company also began the year with roughly $100 million of carry‑over locked revenue versus $5–10 million this time last year, indicating a large improvement in forward‑looking secured revenues.
Negative Updates
Pipeline Trimmed (US Civilian Conservative Re‑assessment)
Pipeline fell from roughly $2.4 billion three months ago to $2.1 billion (~$300M reduction, ≈12.5% decline) after management applied more conservative assumptions to U.S. civilian (non‑military, non‑law‑enforcement) opportunities due to nascent adoption and slower follow‑on projects.
Read all updates
Q4-2025 Updates
Positive
Negative
Substantial Revenue and Cash Receipts Growth
Reported about $202 million in customer cash receipts and described top-line results as roughly just under 4x the prior year (approximately a multi‑hundred percent YoY increase). The company also began the year with roughly $100 million of carry‑over locked revenue versus $5–10 million this time last year, indicating a large improvement in forward‑looking secured revenues.
Read all positive updates
Company Guidance
Management did not give formal FY26 revenue guidance but said it expects a “very meaningful” multi‑fold increase over FY25, noting the business entered 2026 with roughly $100M of contracted/locked cash receipts, reported about $202M of customer cash receipts in the latest period (≈4x year‑earlier), and started the year with a healthy cash balance (~$200M). Key metrics highlighted: a $2.1B pipeline (down from ~$2.4B three months prior) across ~300 deals; SaaS growth from just under $3M in 2024 to just under $12M in 2025 and >$18M already locked for 2026 with a target to grow software from ~5% to ~30% of revenue; R&D spend >$70M; ~350 hardware/software engineers (company headcount ~500, planned ~600 by end‑26); target gross margin ~65%; run‑rate cash costs ~$150M; and manufacturing capacity expansion (aiming to support ~$2.4B of output by year‑end) with rapid delivery capability demonstrated on $62M and other orders.DroneShield Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
85
Very Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 216.55M | 57.53M | 54.09M | 16.81M | 10.47M |
| Gross Profit | 108.33M | 41.24M | 38.95M | 11.83M | 7.62M |
| EBITDA | 6.54M | -2.71M | 2.56M | -1.94M | -5.88M |
| Net Income | 3.52M | -1.32M | 9.33M | -949.30K | -5.31M |
Balance Sheet | |||||
| Total Assets | 412.19M | 355.88M | 97.05M | 25.21M | 18.34M |
| Cash, Cash Equivalents and Short-Term Investments | 209.49M | 219.49M | 56.77M | 10.22M | 9.49M |
| Total Debt | 25.25M | 9.11M | 2.63M | 596.10K | 248.37K |
| Total Liabilities | 75.57M | 44.29M | 22.54M | 6.21M | 2.76M |
| Stockholders Equity | 336.62M | 311.59M | 74.51M | 19.00M | 15.58M |
Cash Flow | |||||
| Free Cash Flow | 9.24M | -64.40M | 7.75M | -2.58M | -6.74M |
| Operating Cash Flow | 24.07M | -58.04M | 9.48M | -1.75M | -6.27M |
| Investing Cash Flow | 20.21M | -165.26M | -1.95M | -832.17K | -467.45K |
| Financing Cash Flow | -477.00K | 231.89M | 39.11M | 3.06M | -122.03K |
DroneShield Limited Technical Analysis
Positive
3.61
Price Trends
3.64
Negative
3.35
Positive
3.57
Positive
Market Momentum
-0.07
Positive
47.37
Neutral
45.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DRO, the sentiment is Positive. The current price of 3.61 is below the 20-day moving average (MA) of 3.81, below the 50-day MA of 3.64, and above the 200-day MA of 3.57, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 45.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DRO.
DroneShield Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | AU$3.49B | 806.23 | 1.08% | ― | 276.41% | ― | |
57 Neutral | AU$1.98B | 92.35 | 7.19% | ― | -27.25% | ― | |
53 Neutral | AU$8.03M | -6.33 | 2.60% | ― | 76.04% | ― | |
52 Neutral | AU$29.83M | -1.97 | -40.51% | ― | 6.10% | -7.14% | |
42 Neutral | AU$7.47M | -14.21 | -71.80% | ― | -3.46% | 69.77% |
* Industrials Sector Average
AU:DRO
DroneShield Limited
3.62
2.29
171.16%
AU:EOS
Electro Optic Systems Holdings Limited
9.70
8.47
685.43%
AU:HCL
XTEK Limited
0.19
0.01
5.56%
AU:T3D
333D Limited
0.04
0.02
157.14%
AU:RKT
Delta Drone International Ltd
0.02
0.01
130.00%
AU:SP3
Spectur Ltd.
0.02
<0.01
38.46%
DroneShield Limited Corporate Events
DroneShield Showcases AI Counter-Drone Technology at Goldman Sachs Conference
Apr 8, 2026
DroneShield Limited has presented its AI-driven counter-drone capabilities at the Goldman Sachs Emerging Leaders Conference on 9 April 2026, highlighting systems like its DroneSentry-C2 Tactical command-and-control platform. By showcasing these ru...
DroneShield Discloses Final Director Interest as Oleg Vornik Departs Board
Apr 8, 2026
DroneShield Limited has announced the cessation of Oleg Vornik as a director of the company effective 8 April 2026, as disclosed in a final director’s interest notice to the ASX. The filing notes that Vornik holds 902,528 unlisted and vested...
DroneShield Details New Director Angus Bean’s Equity-Heavy Remuneration Package
Apr 8, 2026
DroneShield Limited has appointed Angus Bean as a director effective 8 April 2026, disclosing his initial interests in the company’s securities, including 538,875 performance options and an indirect holding of 500,000 fully paid ordinary sha...
DroneShield Overhauls Leadership as Revenue and Cash Receipts Hit New Highs
Apr 7, 2026
DroneShield announced a major leadership transition, with long‑serving CEO and managing director Oleg Vornik stepping down after more than a decade and Chief Product Officer Angus Bean, one of the firm’s earliest employees and key arch...
JPMorgan Ceases to Be Substantial Holder in DroneShield
Apr 6, 2026
JPMorgan Chase Co. and its affiliates have notified DroneShield that they have ceased to be a substantial holder in the company as of 2 April 2026. The change reflects a series of securities lending, investment management, and proprietary trading...
DroneShield issues 7.8 million unquoted options under employee incentive scheme
Apr 2, 2026
DroneShield Limited has notified the market of the issue of 7,821,742 unquoted options under its employee incentive scheme, with various exercise prices and expiry dates, effective 2 April 2026. The new options, which will not be quoted on the ASX...
DroneShield Sets May 2026 AGM Date and Director Nomination Deadline
Apr 1, 2026
DroneShield Limited has scheduled its Annual General Meeting for 29 May 2026, setting 10 April 2026 as the deadline for shareholder nominations for director positions. The timing and notice of the AGM provide investors and stakeholders with clarit...
DroneShield seeks ASX quotation for additional 160,000 ordinary shares
Mar 27, 2026
DroneShield Limited has applied to the ASX for quotation of 160,000 new fully paid ordinary shares, to be issued on 27 March 2026. The modest increase in quoted securities, arising from the exercise or conversion of existing instruments, slightly ...
DroneShield seeks ASX quotation for 315,000 new ordinary shares
Mar 20, 2026
DroneShield Limited has applied for quotation on the ASX of 315,000 new fully paid ordinary shares under its code DRO, with an issue date of March 20, 2026. The relatively small share issuance, arising from the exercise or conversion of existing s...
DroneShield seeks ASX quotation for 280,000 new ordinary shares
Mar 13, 2026
DroneShield Limited has applied to the ASX for quotation of 280,000 new fully paid ordinary shares under code DRO, with an issue date of March 13, 2026. The modest increase in quoted securities, arising from the exercise or conversion of existing ...
DroneShield Seeks ASX Quotation for 1.34 Million New Shares
Mar 4, 2026
DroneShield Limited has applied to the ASX for quotation of 1,335,000 new fully paid ordinary shares under the ticker DRO, with an issue date of March 4, 2026. The additional quoted securities modestly expand the company’s listed share base ...
DroneShield posts record FY2025 revenue and expands global counter-drone pipeline
Feb 26, 2026
DroneShield has released the transcript of its FY2025 investor call, highlighting a step-change in scale as revenue surged to about A$260 million, roughly four times the prior year. The company reported profitability with about A$3.5 million net p...
DroneShield Wins $21.7m Western Military Counter-Drone Contracts
Feb 25, 2026
DroneShield Limited has secured six contracts worth $21.7 million via an in-country reseller to supply a western military customer with dismounted counter-drone systems, spare kits and software subscriptions. The products will be delivered from ex...
DroneShield Seeks ASX Quotation for 1.85 Million New Shares
Feb 25, 2026
DroneShield Limited has applied to the ASX for quotation of 1,850,000 ordinary fully paid shares under its DRO ticker. The new securities, issued on 25 February 2026, expand the company’s quoted share capital and may support future funding f...
DroneShield Updates Trading Policy to Strengthen Governance
Feb 25, 2026
DroneShield Limited has updated its Trading Policy, with the revised version taking effect from 25 February 2026 and being made available through the company’s investor relations website. The move underscores the board’s focus on gover...
DroneShield Overhauls Governance After ASX-Triggered Review
Feb 25, 2026
DroneShield has completed a governance review triggered by director share sales, a withdrawn market announcement and subsequent ASX scrutiny in November 2025, leading the board to benchmark its practices against those expected of an ASX200 company...
DroneShield Swings to Profit on 276% Revenue Surge in 2025
Feb 24, 2026
DroneShield Limited has reported a sharp turnaround in its full-year results to 31 December 2025, with revenue from ordinary activities surging 276% to $216.5 million. The company moved from a $1.32 million loss in 2024 to a $3.52 million net prof...
DroneShield Sets Date for FY2025 Results and Investor Call
Feb 22, 2026
DroneShield Limited has scheduled the release of its financial results for the year ended 31 December 2025 for 25 February 2026, signaling an upcoming update on the company’s operational and financial performance. The company will follow the...
DroneShield Seeks Quotation of 370,000 New Ordinary Shares on ASX
Feb 6, 2026
DroneShield Limited has applied for quotation of 370,000 new fully paid ordinary shares on the ASX, to be traded under its existing ticker DRO. The additional securities arise from the exercise or conversion of existing options or other convertibl...
JPMorgan Ceases to Be Substantial Holder in DroneShield
Feb 3, 2026
JPMorgan Chase Co. and its affiliates have lodged a notice indicating they have ceased to be a substantial holder in DroneShield Limited as of 30 January 2026. The change reflects a series of transactions and securities lending activities across ...
DroneShield Seeks ASX Quotation for 4.57 Million New Shares
Jan 29, 2026
DroneShield Limited has applied to the ASX for quotation of 4,565,000 new fully paid ordinary shares under the ticker DRO, with an issue date of 29 January 2026. The additional stock issuance will expand the company’s quoted share capital, p...
DroneShield Sets Investor Call to Discuss Fourth-Quarter 2025 Results
Jan 27, 2026
DroneShield Limited has scheduled an investor webinar to discuss its fourth-quarter 2025 results, to be held on 28 January 2026 and presented by the company’s chief executive, chief financial officer and chief product officer. The briefing u...
DroneShield Posts Record Half-Year Profit as Recurring Revenue Surges
Jan 26, 2026
DroneShield reported a strong start to 2026, highlighting rapid top-line expansion and improving profitability as its counter-drone business scales. Unaudited management figures show customer cash receipts and revenue from customers rising sharply...
DroneShield Caps Record Year With Surging Revenue, Cash Flow and SaaS Growth
Jan 26, 2026
DroneShield reported a strong fourth quarter to 31 December 2025, with revenue nearly doubling year-on-year to A$51.3 million and customer cash receipts up 142% to A$63.5 million, marking its second-best quarter on both measures and capping a reco...
DroneShield CEO Options Vest After Hitting $200m Cash Receipts Milestone
Jan 23, 2026
DroneShield Limited has disclosed a change in CEO Oleg Vornik’s interests in the company’s securities, with 709,361 unlisted performance options vesting after the business achieved a key milestone of $200 million in cash receipts withi...
DroneShield Options Vest as Cash Receipts Hit $200m Milestone
Jan 23, 2026
DroneShield has announced the vesting of 9.22 million performance options after the company achieved a milestone of $200 million in cash receipts over a rolling 12-month period, reflecting a sharp uplift from when the options were originally grant...
DroneShield Wins Spot on Australian Defence Counter-Drone Procurement Panel
Jan 15, 2026
DroneShield has been selected as a Category 2 counter-small unmanned aerial systems solutions provider on the Australian Department of Defence’s Project LAND 156 Line of Effort 3 Standing Offer Panel, enabling Defence to procure its counter-...
JPMorgan Ceases to Be Substantial Shareholder in DroneShield
Jan 13, 2026
JPMorgan Chase Co. and its affiliates have notified DroneShield Limited that they have ceased to be a substantial holder in the company as of 9 January 2026, following a series of transactions and securities lending-related changes in their relev...
DroneShield Seeks ASX Quotation for 500,000 New Ordinary Shares
Jan 12, 2026
DroneShield Limited has applied to the ASX for quotation of 500,000 new fully paid ordinary shares, to be issued on 12 January 2026 under the ticker DRO. The additional securities, arising from the exercise or conversion of existing options or oth...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.