DroneShield has churned out its first counter-drone system manufactured in Europe, a milestone unveiled at the Eurosatory defence exhibition in Paris. The unit, built under contract manufacturing, is designed to shorten regional supply chains and put the company squarely in the path of NATO procurement budgets. Yet for all the operational noise, the stock continues to bleed — trading at €1.63 (approximately A$2.70), more than 55% below its 52-week high of €3.65.
The Paris show also produced two new alliances. DroneShield signed a strategic tie-up with Dutch firm Defenture to embed its detection and jamming gear into vehicles such as the Mammoth and GRF platforms. Alongside, it demonstrated an open-system concept with US-based Parsons Corporation, running its sensors inside the DroneArmor command environment — a pitch to procurement officers that no vendor lock-in is required.
The order book offers plenty of fuel: 312 projects worth A$2.2 billion, with 15 individual contracts each exceeding A$30 million. One deal alone, valued at A$730 million, is expected to be decided in the second half of 2026. Europe dominates the pipeline with 66 projects worth A$1.3 billion, followed by 127 US projects and 28 in Asia. First-quarter revenue hit A$74 million, a 121% jump year-on-year, and A$171 million in secured revenue already sits on the books for the full year.
Should investors sell immediately? Or is it worth buying DroneShield?
What keeps spoiling the party is the Australian Securities and Investments Commission (ASIC) investigation launched in November 2025. The probe centres on insider trading allegations: former CEO Oleg Vornik, chairman Peter James and director Jethro Marks sold their entire stakes for a combined A$66.8 million, just as the company withdrew a faulty contract announcement. DroneShield says it is cooperating fully. At the annual general meeting, more than 50% of shareholders voted against the remuneration report — a “first strike” under Australian law that, if repeated, could trigger a board spill. The company responded by imposing a mandatory minimum holding period for shares held by directors and executives.
Analysts are split on where the stock goes from here. Canaccord Genuity picked up coverage with a speculative buy rating and a price target of A$3.75, citing the company’s proprietary signal database and software edge as demand surges from Ukraine-driven spending. Bell Potter and Petra Capital are more bullish, pegging fair value at A$4.80. Ord Minnett, however, advises reducing positions, with a target of just A$2.28. Adding to the overhang, around 820,000 new shares were admitted to the Sydney exchange in mid-June from option exercises — a modest dilution that irks investors in weak markets.
Technically, the stock is hovering near oversold territory with a relative strength index of 33.5 to 35, well under its 200-day moving average. The next hard look comes on August 26, when half-year results will reveal whether the European factory’s initial revenue can shift the narrative away from the regulatory cloud. Until ASIC provides clarity, even record backlogs and fresh manufacturing capacity are struggling to gain traction.
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