Why the DroneShield (ASX:DRO) share price is jumping 6% today

The DroneShield Ltd (ASX: DRO) share price share price has rocketed higher today following a government agency order. Here's the lowdown.

| More on:
flying asx share price represented by man flying remote control drone

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

DroneShield Ltd (ASX: DRO) shares are rocketing higher today on news the defence contractor has signed an additional government agency order. At the time of writing, the DroneShield share price has lifted 5.9% to 18 cents.

What's driving the DroneShield share price?

The DroneShield share price is on the rise today after the company announced it has received a follow up order for its DroneGun Tactical hand-held, counter-unmanned aerial systems (UAS) products. The additional purchase is said to be from a Five Eyes country. The term 'Five Eyes' relates to a signals alliance between the United States, Canada, Australia, the United Kingdom, and New Zealand.

DroneGun Tactical is a portable, long range counter measure used against UAS threats. When attacking the target, the high-tech gun safely brings the enemy UAS down to ground with no peripheral damage, protecting the surrounding environment.

The deal, valued at around $400,000, represents ongoing commitments from government agencies, which have sought DroneShield products in the past. This includes a $900,000 purchase of DroneGun counter UAS products that was announced on 1 October. The latest transaction is due to be completed sometime in the first-quarter of the new year, pending usual export approvals.

Words from the CEO

Commenting on the contract award, DroneShield CEO Mr Oleg Vornik reinforced the company's importance to defence markets. He said:

This order demonstrates adoption of our products at a mature sales cycle level, where ongoing repeat orders of meaningful scale start to occur. There is necessarily a larger upfront effort in developing the technology and achieving the initial adoption by tier 1 customers.

This order shows DroneShield moving to a subsequent phase of ongoing sales without requirement of testing and evaluation prior to each sale, as our products become the standard for counter-UAS technology amongst leading Government agencies globally.

DroneShield share price snapshot

The DroneShield share price has fallen pretty hard over the past 12 months, losing nearly 40% for shareholders. While the company signed off a slew of contracts in 2020, its share price has failed to take off.

Based on the current DroneShield share price, the company has a market capitalisation of $66.3 million.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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 Bruce Jackson.

More on Share Market News

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

3 amazing ASX 200 shares to buy and hold forever

Brokers think these shares are in the buy zone. Let's see why they could be top buy and hold picks.

Read more »

iPhone with the logo and the word Google spelt multiple times in the background.
Opinions

I've been buying these 2 US stocks in 2025. Here's why

Sometimes the US markets are a better place to go shopping for stocks.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Catapult, Hutchinson, SKS, and West African shares are pushing higher today

These shares are having a strong session despite the market weakness.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Dexus, Mayne Pharma, Nufarm, and Treasury Wine shares are falling today

These shares are having a tough session on Thursday. But why?

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Mergers & Acquisitions

IAG share price lifts off on strategic alliance approval

IAG shares are racing higher in Thursday’s sinking market.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 72% in 2025, why is this ASX 200 gold stock racing ahead of the benchmark again today?

Investors are bidding up this high-flying ASX 200 gold stock again on Thursday. But why?

Read more »

A woman wearing a black and white striped t-shirt looks to the sky with her hand to her chin contemplating buying ASX shares today as the market rebounds
Share Market News

Where could the RBA interest rate go in the next 12 months?

Here’s what one expert thinks could happen with interest rates by early 2026.

Read more »

A man holds his head in his hands after seeing bad news on his laptop screen.
Share Market News

5 things to watch on the ASX 200 on Thursday

It looks set to be a tough session for Aussie investors today.

Read more »