DroneShield share price rockets 9% on 'significant' new contract

ASX investors are sending the DroneShield share price flying higher on Monday.

| More on:
a man sits on a rocket propelled office chair and flies high above a city

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

The DroneShield Ltd (ASX: DRO) share price is lifting off today.

Shares in the S&P/ASX 300 Index (ASX: XKO) drone defence company closed Friday trading for 76 cents. In morning trade on Monday, shares are changing hands for 82.5 cents apiece, up 8.6%.

For some context, the ASX 300 is up 0.4% at this same time.

Created with Highcharts 11.4.3DroneShield PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

As you can see on the chart above, this puts the DroneShield share price up 123% over the past 12 months. However, the stock still has a ways to go before recouping its $2.60 per share highs posted on 15 July.

Here's what's grabbing investor interest today.

What's lifting the DroneShield share price?

Investors are bidding up the DroneShield share price after the company announced a "significant order" from a Latin American customer.

Management said the $9.7 million order from a major Latin American military end customer represented "an exciting step forward" in the company's global growth ambitions, noting that it highlighted the increasing demand for DroneShield products in a "dynamic and diverse market".

The contract was initiated through DroneShield's Latin American in-country reseller, said to be an established local entity and one of the leading integrators and resellers of advanced technological solutions in its country.

DroneShield said its in-country reseller has more than 19 years of sales history and has successfully executed more than 165 defence-related contracts, including to the government end customer placing this new $9.7 million order.

The order is for a combination of dismounted, mobile, and fixed-site counter-drone systems (C-UxS). It represents DroneShield's first order from this in-country reseller and end customer.

What did management say?

Commenting on the new contract award boosting the DroneShield share price today, CEO Oleg Vornik said:

DroneShield has spent much of 2024 scaling its presence in the Latin American market and has built a substantial pipeline diversified over multiple countries.

2025 will see further development in the LATAM market, with the recent appointment of a dedicated LATAM Sales Director, Carlos Gutierrez.

The company expects delivery and payment to occur in the first half of 2025. Around 80% of that payment is expected before shipping, with the remaining 20% to be paid following delivery.

What's been moving the DroneShield share price?

While up 123% since this time last year, the DroneShield share price has come under selling pressure over recent months amid fears the stock rose too high too quickly.

Although the company has continued to post some impressive growth figures.

At its third quarter results, covering the three months to 30 September, DroneShield reported an 18% year-on-year increase in cash receipts to $9.1 million, marking a record third-quarter performance for the company.

And the growth outlook remains solid, with management forecasting a sales pipeline valued at $1.1 billion.

On the balance sheet, DroneShield had a cash balance of $238.3 million and no debt as of 30 September.

Should you invest $1,000 in Bwp Trust right now?

Before you buy Bwp Trust shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bwp Trust wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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.

More on Technology Shares

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Technology Shares

Gentrack share price down 5% on half-year results

Let's unpack what was reported.

Read more »

Man with rocket wings which have flames coming out of them.
Technology Shares

Which ASX All Ords stock is jumping 14% on big counter-drone news

Investors are responding positively to news of a big contract win.

Read more »

Two plants grow in jars filled with coins.
Technology Shares

2 ASX growth shares I'd buy with $5,000 right now

I’m bullish about these two stocks with compelling growth potential.

Read more »

A woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.
Technology Shares

Growth investors should put these 2 top ASX tech shares on the watchlist

I think growth stocks from the tech sector could be exciting options.

Read more »

One girl leapfrogs over her friend's back.
Technology Shares

This ASX 200 tech stock would have doubled your money in a year. Is it too late to buy now?

After more than doubling in a year, here’s what Macquarie expects next for this soaring ASX 200 tech stock.

Read more »

Two brokers analysing stocks.
Technology Shares

What are top brokers saying about Xero shares?

Is now the time to buy this popular share? Let's see what brokers are saying.

Read more »

Hologram of a man next to a human robot, symbolising artificial intelligence.
Technology Shares

Appen share price rockets 18% on guidance update

Let's see what is getting investors excited on Friday.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

Up 50% in a year, are Xero shares a buy after Thursday's earnings results?

ASX investors reacted positively to Xero’s full-year earnings results on Thursday. Now what?

Read more »