- A package of three standalone follow-on contracts of $61.6m for European military
- Biggest contract in DroneShield history, greater than the entire 2024 revenue
- Delivery is expected during Q3 2025 with payments in Q3 and Q4 2025
- DroneShield is establishing a European manufacturing and assembly facility to support the region’s growing defence demand
- Europe represents over $1.1bn across 55 active pipeline opportunities, making it one of DroneShield’s largest markets
DroneShield (ASX:DRO) is pleased to announce it has received a package of three standalone follow-on contracts for $61.6 million from its privately owned in-country European reseller that is contractually required to distribute the products to a European military customer. The contract is for handheld detection and counter-drone systems and associated accessories. DroneShield expects to deliver all equipment throughout Q3 2025, with cash payment expected in Q3 and Q4 2025.
This is the biggest single order in DroneShield’s history and is larger than the company’s entire revenue for 2024 ($57.5m). Importantly, DroneShield’s recent production and inventory holding expansion means that this order is expected to be fully delivered within the quarter.
Oleg Vornik, DroneShield CEO, commented: “In succession to the $32.2 million repeat order announced on 14 April 2025 for another customer, DroneShield products are now being purchased in material quantities. The scale and frequency of orders has been increasing as leading Military customers are moving from testing hardware to broader rollouts. DroneShield is well placed to meet the increasing demand.”
Pictured: DroneShield Immediate Response Kit
This major contract aligns with DroneShield’s broader expansion across Europe. DroneShield is significantly investing to expand its operations in the region, supporting domestic defence programs such as the €800 billion ($1.4 trillion) ReArm Europe Plan / Readiness 2030.
In general, the ReArm Europe Plan / Readiness 2030 will:
- Boost EU defence spending through fiscal flexibility and loans,
- Reinforce industrial and procurement autonomy across the EU region, and
- Mobilise private investment and support for Ukraine.
In line with the broader increase in military spending across the EU, DroneShield is establishing a European Centre of Excellence focused on manufacturing and assembly; research and development; drone testing; and training. This will be DroneShield’s first European manufacturing and in-house assembly facility outside of Australia, creating a second production line for key hardware with at least 65 per cent European industry content for certain regional sales.
Europe is currently one of DroneShield’s largest geographical segments, with over A$1.1 billion across 55 of active pipeline opportunities. The new manufacturing capabilities are expected to qualify the company for further procurement programs, increasing both scale and frequency of European-based orders.
In line with the aims of the ReArm Europe Plan, DroneShield continues to support Ukrainian frontline operations with rapid upgrades to counter evolving drone threats, a process enhanced through its Sydney-based development and collaboration hub.
Oleg Vornik, DroneShield CEO, commented: “Establishing a robust European supply chain to support equipment sold in the region will strengthen sovereign capability, Meanwhile, our experienced Australian software development team continues to deliver critical updates addressing emerging threats, both in Ukraine and globally. Our expanded team in Europe, combined with growing manufacturing output in Australia, ensures DroneShield is well positioned to meet the rising demand from both existing and new defence partners.”
Exports accounted for 91 per cent of DroneShield’s Australian production in 2024, underlining the global relevance of its technologies as Australia itself ramps up defence investment under the Future Made in Australia initiative. With national defence spending forecast to double to $100 billion by FY34, DroneShield remains focused on delivering cutting-edge sovereign defence capabilities in support of both Australian interests and those of its allies.
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