DroneShield Ltd.'s (DRO:ASX; DRSHF:OTC) secured 2025 revenue just jumped about 60% with a new order in a record amount of AU$61.6 million (AU$61.6M), reported Shaw and Partners Senior Analyst Abraham Akra in a June 25 research note. Shaw and Partners raised its target price on the defense manufacturer by 67%.
"DroneShield's June update shows momentum accelerating," Akra wrote.
Share Price Surpasses Target
Shaw and Partners' new target price on the counterdrone solutions firm is AU$2 per share, previously AU$1.20, the analyst noted. In comparison, at the time of Akra's report, DroneShield was trading at about AU$2.14 per share, already having climbed 7% higher than the new target.
DroneShield remains rated Hold.
Recent Performance Notable
Akra reported that DroneShield's secured income, project pipeline and wins all grew substantially during the past month.
The new order in late June and some smaller ones took DroneShield's year-to-date (YTD) secured income to AU$161 million (AU$161M), already more than double total revenue in 2024 (AU$57.5M). In May the company already had generated AU$100.4M of YTD revenue.
As for the company's project pipeline, it grew 3% between May and June, to AU$2.41 billion (AU$2.41B) from AU$2.34B in May. This reflected an increase in the number of projects to 268 from 256.
This shows "broader customer base and greater repeat order potential," Akra wrote.
YTD wins mounted to AU$131.7M from AU$41.3M between the company's annual general meeting on May 25 and late June.
"That tripling of wins inside six weeks underscores a pivotal transition from evaluation sales to volume deployments by blue chip militaries," noted Akra.
The analyst pointed out that DroneShield, now with 234 engineers, a set of plants in Sydney and two manufacturing partners, has the capacity to fulfill up to AU$500M worth of orders annually.
Strong Cash Position
As for available cash, DroneShield remains well-positioned even though the total amount decreased 7% between May 20 and June 20, to AU$198M from AU$213M. This likely was due to the company spending on parts that take longer to procure, to beef up its inventory.
"With zero debt, the company still carries about 10 quarters of fixed costs (AU$6.5M baseline fixed cash operating costs per month), leaving room for research and development (R&D), capacity and potential bolt-ons without returning to the equity market," wrote Akra. DroneShield spends about AU$50M per year on R&D.
European Footprint Expands
Due to the new AU$61.6M order and NATO's rearmament spending, Europe recently became a larger market for DroneShield. Between February 25 and late June, the company's pipeline of European projects expanded in value to AU$1,100M from AU$382M. Now, 46% of DroneShield's active projects are for European customers.
"Management therefore reaffirms plans for a continental assembly hub to cut lead times, safeguard margins and satisfy local content rules tied to ReArm [Europe] funding," Akra wrote.
Company's New Estimates
The analyst reported that DroneShield increased its revenue forecasts for 2025, 2026 and 2027 to AU$206M, up 63.1%; AU$232.9M, up 60.4%; and AU$277.2M, up 57.2%.
The company's new EBITDA projections for the same years are AU$49M, up 129.9%; AU$67.2M, up 85.6%; and AU$102.3M, up 63.7%.
More Stock Specifics
Akra reported that at the time of his report, DroneShield has a market cap of AU$1.9B and a 52-week range of AU$0.59–2.60 per share.
The company's major shareholders are Regal Funds Management Pty. Ltd. with 9.4%, The Vanguard Group Inc. with 5.5%, State Street Global Advisors, Australia with 4.1%, Epirus Inc. with 2.1% and Charles Barrington Goode also with 2.1%.
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Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneShield Ltd.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Shaw and Partners, DroneShield Ltd., June 25, 2025
Shaw and Partners Limited ABN 24 003 221 583 (“Shaw”) is a Participant of ASX Limited, Cboe Australia Pty Limited and holder of Australian Financial Services Licence number 236048. ANALYST CERTIFICATION: The Research Analyst who prepared this report hereby certifies that the views expressed in this document accurately reflect the analyst's personal views about the Company and its financial products. Neither Shaw nor its Research Analysts received any direct financial or non-financial benefits from the company for the production of this document. However, Shaw Research Analysts may receive assistance from the company in preparing their research which can include attending site visits and/or meetings hosted by the company. In some instances the costs of such site visits or meetings may be met in part or in whole by the company if Shaw considers it is reasonable given the specific circumstances relating to the site visit or meeting. As at the date of this report, the Research Analyst does not hold, either directly or through a controlled entity, securities in the Company that is the subject of this report, or where they do hold securities those interests are not material. Shaw restricts Research Analysts from trading in securities outside of the ASX/S&P100 for which they write research. Other Shaw employees may hold interests in the company, but none of those interests are material. DISCLAIMER: This report is published by Shaw to its clients by way of general, as opposed to personal, advice. This means it has been prepared for multiple distribution without consideration of your investment objectives, financial situation and needs (“Personal Circumstances”). Accordingly, the advice given is not a recommendation that a particular course of action is suitable for you and the advice is therefore not to be acted on as investment advice. You must assess whether or not the advice is appropriate for your Personal Circumstances before making any investment decisions. You can either make this assessment yourself, or if you require a personal recommendation, you can seek the assistance of your Shaw client adviser. This report is provided to you on the condition that it not be copied, either in whole or in part, distributed to or disclosed to any other person. If you are not the intended recipient, you should destroy the report and advise Shaw that you have done so. This report is published by Shaw in good faith based on the facts known to it at the time of its preparation and does not purport to contain all relevant information with respect to the financial products to which it relates. The research report is current as at the date of publication until it is replaced, updated or withdrawn. Although the report is based on information obtained from sources believed to be reliable, Shaw does not make any representation or warranty that it is accurate, complete or up to date and Shaw accepts no obligation to correct or update the information or opinions in it. If you rely on this report, you do so at your own risk. Any projections are indicative estimates only and may not be realised in the future. Such projections are contingent on matters outside the control of Shaw (including but not limited to market volatility, economic conditions and company-specific fundamentals) and therefore may not be realised in the future. Past performance is not a reliable indicator of future performance. Except to the extent that liability under any law cannot be excluded, Shaw disclaims liability for all loss or damage arising as a result of any opinion, advice, recommendation, representation or information expressly or impliedly published in or in relation to this report notwithstanding any error or omission including negligence. Depending on the timing and size of your investment, your portfolio composition may differ to the model. Performance figures are derived from the inception date of the model and its investment transactions from that date, therefore the performance for your portfolio may be different. If you have any questions in connection with differences between your portfolio and the model, you should speak with your adviser. For U.S. persons only: This research report is a product of Shaw and Partners Limited under Marco Polo Securities 15a-6 chaperone service, which is the employer of the research analyst(s) who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States (U.S.) and are not associated persons of any U.S. regulated broker-dealer and therefore the analyst(s) is/are not subject to supervision by a U.S. broker-dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or regulations regarding, among other things, communications with a subject company, public appearances and trading securities held by a research analyst account. Research reports are intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the Exchange Act) and interpretations thereof by U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a-6(a)(2). If the recipient of this report is not a Major Institutional Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied, duplicated and/or transmitted onward to any U.S. person, which is not the Major Institutional Investor. In reliance on the exemption from registration provided by Rule 15a-6 of the Exchange Act and interpretations thereof by the SEC in order to conduct certain business with Major Institutional Investors, Shaw and Partners Limited has entered into a chaperoning agreement with a U.S. registered broker-dealer, Marco Polo Securities Inc. ("Marco Polo"). Transactions in securities discussed in this research report should be affected through Marco Polo or another U.S. registered broker dealer. DISCLOSURE: Shaw will charge commission in relation to client transactions in financial products and Shaw client advisers will receive a share of that commission. Shaw, its authorised representatives, its associates and their respective officers and employees may have earned previously or may in the future earn fees and commission from dealing in the Company's financial products. Shaw acted as Joint Lead Manager and Underwriter in the placement of DRO securities over the last 12 months for which it received fees or will receive fees for acting in this capacity. Accordingly, Shaw may have a conflict of interest which investors should consider before making an investment decision.