DroneShield Rockets to A$216.5m Revenue with $2.09bn Pipeline in 2025

Record Financial Performance

DroneShield Limited (ASX – DRO) has delivered an exceptional financial performance for the full year 2025, reporting revenue from customers of A$216.5 million, a remarkable 277% increase compared to 2024. This surge reflects the company’s successful expansion in both military and civilian counter-drone markets, driven by strong demand for its multi-mission artificial intelligence solutions.

Notably, the company’s software-as-a-service (SaaS) revenue soared by 312% year-on-year to A$11.6 million, signalling a strategic shift towards recurring revenue streams. SaaS offerings are becoming increasingly critical as drone technology evolves, with software playing a larger role in command-and-control capabilities.

Robust Sales Pipeline and Market Expansion

DroneShield’s sales pipeline stands at an impressive A$2.09 billion as of January 2026, encompassing over 300 deals across diverse geographies including the US, Europe, Australia, and emerging markets such as Mexico and the UAE. This pipeline reflects a broad customer base and product range, from handheld detection devices to fixed-site solutions.

The company is capitalising on new legislative tailwinds, particularly the US Safer Skies Act, which expands counter-drone authorities to state and local law enforcement agencies. This legislation opens a substantial market opportunity estimated at US$2.5 to $3.2 billion, with DroneShield’s products like DroneGun and DroneSentry positioned to meet growing demand.

Manufacturing and R&D Investment

To support its rapid growth, DroneShield is significantly expanding its manufacturing capacity. The new Sydney facility will increase annual production capacity from A$500 million to A$2.4 billion by the end of 2026. Complementing this, the company is investing over A$70 million annually in research and development, focusing on AI-powered software upgrades and next-generation hardware launches slated for late 2026 and beyond.

This manufacturing expansion is part of a global strategy that includes European and US contract manufacturing hubs, enhancing supply chain resilience and regional responsiveness.

Strategic Positioning and Competitive Edge

DroneShield maintains its position as a global leader in counter-drone technology, supported by a team of over 350 engineers and proprietary AI datasets. Its end-to-end solutions integrate hardware and software, offering unmatched flexibility and interoperability. The company’s focus on innovation and close customer collaboration differentiates it from competitors, many of whom have consolidated or operate in more restricted markets.

Looking ahead, DroneShield aims to double its sales pipeline to A$5 billion by 2027, expand civilian sector penetration to 50% of revenue, and continue growing its SaaS footprint, which is expected to represent 30-40% of total revenue in the medium term.