How DroneShield’s Record Revenues Withstand Governance Challenges

Strong Business Fundamentals Amidst Media Scrutiny

DroneShield Limited (ASX – DRO), a global leader in counter-drone technology, has responded decisively to recent media commentary, reaffirming its robust business performance and strategic direction. The company reported record revenues for 2025, largely fueled by repeat customers, underscoring sustained market confidence in its advanced counter-drone solutions.

Chief Executive Oleg Vornik emphasized that despite heightened scrutiny, DroneShield's core operations remain strong and focused on global expansion and technological innovation. The company’s commitment to continuous product refinement and customer engagement across more than 80 countries positions it well to capitalize on the growing demand for counter-drone capabilities in both military and civilian sectors.

Governance Enhancements and Transparency

In light of recent events, DroneShield has initiated an independent review of its continuous disclosure and securities trading policies. This review, overseen by independent directors Simone Haslinger and Richard Joffe, reflects the company’s dedication to transparency and best practice governance as it scales its operations.

The company also addressed an administrative error related to a November 10 announcement concerning US contracts. The contracts were mistakenly reported as new rather than revised, prompting DroneShield to withdraw the announcement and implement stronger validation procedures to prevent future errors.

Leadership and Operational Developments

DroneShield announced a leadership transition in its US operations, with Vice President Tom Branstetter stepping into an expanded interim leadership role. This move aims to sustain momentum in the US market, where the company has recently established a senior advisory board and is progressing towards local manufacturing and assembly capabilities.

Additionally, the company outlined its remuneration strategy, noting a shift towards a balanced mix of cash and equity incentives for employees and management. Non-executive directors no longer receive performance options, aligning with governance best practices.

Investment in Innovation and Market Presence

Innovation remains at the heart of DroneShield’s operations, with approximately 70% of its Australian workforce dedicated to engineering and product development. The company continues to invest heavily in research and development, alongside strategic marketing initiatives, including independent participation in major global trade shows to enhance brand visibility and support ambitious revenue targets.

DroneShield also reaffirmed its strict compliance with Australian export control laws and internal controls governing its global distribution network, ensuring secure and vetted channels to customers worldwide.

Looking Ahead

As DroneShield navigates these governance enhancements and operational expansions, it remains focused on delivering world-class counter-drone solutions that meet rigorous operational demands. The company’s ability to adapt and innovate will be critical in maintaining its leadership position in a rapidly evolving threat environment.