DroneShield Wins $23.2m Deal, Lifts FY26 Guidance

DroneShield Limited (ASX:DRO) announced a package of two contracts totalling $23.2 million from reseller COBBS BELUX BV for the supply of vehicle-mountable counter-drone solutions to a European military end-customer, comprising hardware, subscriptions, warranties and services. Approximately $21 million will form part of FY2026 Committed Revenue, with the balance being future-period subscription revenue. The Company also unveiled RfAI-3, the third generation of its proprietary radio frequency detection engine, which applies wideband detection to identify drones not present in existing RF signature libraries and generate new signatures for unknown emissions. RfAI-3 is designed for DroneShield's next-generation hardware platforms, with initial releases expected to commence in the second half of calendar year 2026.

In a preliminary trading update for the six months ended 30 June 2026 (1H 2026), DroneShield said revenue is expected to be $125.8 million, 74% higher than the prior corresponding period, with recurring revenue estimated at $14.2 million (11.3% of revenue) and gross margin estimated at 60%, compared with 65% in the prior corresponding period. FY2026 Committed Revenue as at 28 July 2026 was $206 million. DroneShield now expects total revenue in FY2026 to be in the range of $250 million to $270 million, which is 15% to 25% higher than FY2025. The Company plans to release its 1H 2026 results on 26 August 2026.