Amid a week of bad news, DroneShield Ltd (ASX:DRO, OTC:DRSHF) has finally delivered news to ease shareholder tension, securing a $5.2 million follow-on contract with a European military customer, sending its shares up 13% to $1.975 in early trade.
The deal, placed via an in-country European reseller, covers handheld counterdrone systems and associated accessories. DroneShield says it already has all required hardware on the shelf and expects to receive cash payment in the fourth quarter of 2025. No additional material conditions are attached to the contract.
The reseller has been a vetted distribution partner for three years, during which DroneShield has received 12 previous contracts from it worth more than $70 million, excluding the latest order.
DroneShield reiterated that it does not consider naming the reseller or end-customer to be material to the valuation of its securities and says today’s announcement contains all information required for investors to assess the impact of the contract.
As previously advised, the company plans to lift its announcement threshold for new orders from $5 million to $20 million from 2026, based on its $57 million revenue result in 2024, unless there is a specific rationale to disclose smaller contracts.