DroneShield’s Revenue Jumps 210% to $72.3M, Profit Turns Positive
DroneShield Limited has reported a remarkable turnaround in the half-year ended June 2025, posting record revenue of $72.3 million and a profit after tax of $2.1 million, reversing last year’s loss. The company also secured its largest-ever contract, signaling strong momentum in the counterdrone technology sector.
- Revenue surged 210% to $72.3 million in H1 2025
- Profit after tax of $2.1 million compared to a $4.8 million loss in H1 2024
- Secured a $61.6 million contract, largest in company history
- Cash reserves strengthened to $203.8 million
- Scaling manufacturing capacity and workforce to meet demand
Record Half-Year Performance
DroneShield Limited has delivered a standout financial performance for the half-year ended 30 June 2025, with revenue soaring to $72.3 million, a 210% increase from the prior corresponding period. This surge translated into a profit after tax of $2.1 million, a significant turnaround from a $4.8 million loss in the first half of 2024. The results underscore the growing global demand for DroneShield’s counterdrone hardware and software solutions.
Largest Contract and Strong Backlog
Highlighting this momentum, DroneShield secured a $61.6 million contract in late June, the largest in its history, with full delivery expected by the end of August 2025. The company’s secured revenue for the full year now stands at an exceptional $176.3 million, already surpassing the entire 2024 revenue of $57.5 million. This backlog includes confirmed purchase orders and deferred revenue from subscriptions and warranties, positioning DroneShield for continued growth.
Geographic and Product Diversification
DroneShield’s revenue mix is becoming more balanced geographically and across product lines. Fixed site solutions now represent 60% of revenue, up sharply from 19% in 2024. While the US remains a key market, its contribution has moderated to 20%, with Europe and Asia Pacific accounting for 16% and 27% respectively. Subscription revenue, currently 5% of total, is poised to grow with new AI-enabled software offerings targeting civilian sectors.
Investment in AI and Manufacturing Scale
The company continues to advance its AI-driven counterdrone technology, with planned software updates to enhance threat detection and automated classification. Hardware platforms such as DroneSentry-X, DroneGun, and RfPatrol have also seen iterative upgrades. To meet rising demand, DroneShield is scaling manufacturing capacity from $500 million to $2.4 billion annually by end-2026, leveraging contract manufacturing across Australia, Europe, and the US. The workforce has expanded from 250 to over 370 employees in six months.
Financial Strength and Outlook
DroneShield’s cash and term deposits have grown to $203.8 million, providing a strong liquidity buffer. Despite a net operating cash outflow of $8.7 million, this is a marked improvement from the prior period’s $30.2 million outflow, reflecting improved working capital management. No dividends were declared, as the company focuses on reinvesting to support growth and innovation.
Bottom Line?
DroneShield’s record half-year sets the stage for a transformative 2025, but execution on contract delivery and subscription growth will be critical to sustaining momentum.
Questions in the middle?
- How will DroneShield manage supply chain and delivery risks for its record contract backlog?
- What is the expected timeline and impact of the upcoming AI software upgrades on recurring revenue?
- Could the expanding workforce and manufacturing scale lead to margin pressure or operational challenges?
