DroneShield Ltd. (DRO:ASX; DRSHF:OTC) announced plans to invest AU$13 million over three years to establish a new research and development facility in Adelaide, South Australia. The expansion aims to strengthen the company's counter-drone and electronic warfare capabilities, adding to its existing engineering operations in Sydney and its growing international presence across the United States and Europe.
According to DroneShield, the new facility will initially create about 20 highly skilled engineering roles focused on radio frequency electronics, electronic warfare, and systems integration. The site will be led by Jeff Wojtiuk, a veteran defense engineer and former Lockheed Martin Australia senior leader with more than two decades of experience in RF design and aerospace systems.
Chief Executive Officer Oleg Vornik said the new office marked an important strategic step for the company. "South Australia is recognized as a national leader in defense and space industries, with Adelaide home to a highly skilled and experienced workforce," he said in a company release. "Establishing our first R&D office in Australia outside of our Sydney headquarters — in Adelaide — supports DroneShield's mission to deliver world-leading counter-drone and EW solutions."
The investment comes as DroneShield surpassed a milestone of more than 400 employees globally, nearly doubling its workforce in the past year. Approximately 300 of those employees are software and hardware engineers. Chief Product and Technology Officer Angus Bean said the Adelaide site would "accelerate the development of our next-generation counter-drone and EW technologies" and help meet demand from customers worldwide.
The South Australian government welcomed the announcement, citing its alignment with the state's focus on defense and technology growth. Premier Peter Malinauskas said, "We welcome DroneShield making the choice to conduct research and development here in Adelaide, creating 20 highly skilled engineering roles. As a Government, we have a strong focus on growing our Research and Development ecosystem."
DroneShield's expansion follows a period of record growth. Its most recent half-year investor report showed revenue of AU$72.3 million, up 210% year over year, and profit before tax of AU$5.2 million. The company's order pipeline reached AU$2.34 billion as of August 2025, while annual research and development spending exceeded AU$50 million, supported by a cash balance of AU$207.9 million. The new Adelaide facility is expected to be fully operational by March 2026.
Counter-Drone Innovation Reshapes the Defense Landscape
According to a September 24 report by Philip Butterworth-Hayes for Counter-UAS Systems and Policies, the global counter-uncrewed aerial systems (C-UAS) industry had been shaped by lessons from recent conflicts, particularly in Eastern Europe. The report noted that "the drone war in Ukraine is defining the size, shape, and technical priorities for the global counter-UAS industry." As new drone technologies appeared on the battlefield at an accelerating rate, governments and defense organizations around the world had sought systems that were technically capable, affordable, and scalable enough to meet these evolving challenges.
Butterworth-Hayes wrote that the industry's direction had become clearer in 2025, as layered defense systems integrating radar, acoustic, optical, and electronic countermeasures were increasingly seen as essential for protecting both military and civilian targets. However, he added that these systems were "expensive, static, and very hard to fully integrate," leading to an industry shift toward more agile, affordable, and modular solutions.
According to a Shaw and Partners equity report dated October 1, Senior Analyst Abraham Akra maintained a Buy rating on DroneShield Ltd. with a price target of US$3.60, citing the company's strong positioning within the counter-uncrewed aerial systems (C-UAS) market.
Smaller and mid-sized defense technology developers, capable of responding quickly to urgent operational requirements, had emerged as key players. The report stated that these companies were "leading the industry not just in pioneering new technologies but also in offering more flexible, future-proof acquisition models for end-users."
The Falcon Peak 25.2 experiment, hosted by North American Aerospace Defense Command (NORAD) and U.S. Northern Command (USNORTHCOM), focused on "detecting, identifying, tracking, and mitigating UAS incursions at military installations." The exercise featured testing of sensors, software, and low-collateral defeat options designed to intercept small drones safely over domestic airspace.
According to Gen. Gregory Guillot, commander of NORAD and USNORTHCOM, "NORTHCOM will play a critical role in an enduring whole-of-government effort to protect people, infrastructure, aircraft, and facilities from malign small UAS incursions." He said that effort required ongoing collaboration between the Department of Defense, industry, and interagency partners to align new technologies with evolving defense needs.
A subsequent October 7 report from Military Embedded Systems described how the U.S. defense establishment continued to emphasize emerging technologies, including counter-drone systems, as a core component of future capability development. The publication explained that at the Association of the U.S. Army's Annual Meeting in Washington, D.C., the EarlyBirds Defense Innovation Platform was introduced to accelerate adoption of technologies in areas such as "artificial intelligence, cyber operations, counter-uncrewed aerial systems (C-UAS), quantum sensing, and hypersonics." The platform was designed to connect innovators and defense customers to "address capability gaps through rapid prototyping, research partnerships, and technology deployments."
Analyst Confidence Supported by Record Financial Performance
According to a Shaw and Partners equity report dated October 1, Senior Analyst Abraham Akra maintained a Buy rating on DroneShield Ltd. with a price target of US$3.60, citing the company's strong positioning within the counter-uncrewed aerial systems (C-UAS) market. Akra noted that recent European drone incursions had brought C-UAS technologies to the forefront, particularly following the European Union's proposal for a "Drone Wall" along its eastern border. He wrote that "passive RF (radio frequency) sensing and AI fusion favour DroneShield, whose portable DroneSentry kits scale cheaply," adding that the company's non-kinetic disruption systems remained "the cheapest, most scalable first layer of C-UAS defence."
Akra emphasized that DroneShield's artificial intelligence integration set it apart, stating that "AI-driven assessment makes DRO best in class," as its DroneSentry platform rapidly classified threats to reduce false positives and operator workload. He also observed that non-kinetic jamming continued to dominate C-UAS deployment strategies due to cost efficiency, scalability, and adaptability in complex environments. The report concluded that DroneShield had reached "an inflection point in sales and profitability," strengthened by its agreement with NATO and the U.S. Department of Defense recommendation, which had "solidified DRO as a market leader in jamming C-UAS."
On October 2, The Motley Fool wrote that DroneShield's shares had declined temporarily due to "profit taking" after substantial gains, rather than any negative change in company fundamentals. The publication reported that investors had been enthusiastic about the company's potential following reports that the European Union was planning to construct a "drone wall" along its eastern border and stated that "the market seems to believe that DroneShield is well-positioned to benefit from this plan."
According to a recent research note from Bell Potter Securities on October 7, analyst Baxter Kirk viewed DroneShield Ltd.'s planned AU$13 million investment in its new Adelaide research and development facility as a positive step in strengthening its competitive position. The analysts stated that the facility, to be led by former Lockheed Martin Australia defense engineering leader Jeff Wojtiuk, would enhance the company's capabilities in radiofrequency design and electronic warfare. Bell Potter forecast operating expenditure of AU$98 million and capitalized R&D of AU$24 million for calendar year 2025 and noted that DroneShield's headcount had already surpassed 400 employees, slightly ahead of expectations. The report said, "We believe DRO currently possesses a strong competitive position via leading counter-UAS technology, owing to a first mover advantage and focused R&D spend. In the competitive RF detect and defeat verticals, we view investment into R&D as crucial in cementing DRO's competitive advantage and therefore view this investment favourably."
Expanding Global Footprint to Meet Rising Counter-Drone Demand
DroneShield's expansion in South Australia forms part of a broader global scale-up strategy. The company has been increasing production capacity from AU$500 million to AU$2.4 billion by the end of 2026 and is simultaneously establishing manufacturing hubs in Europe and the United States.
According to its August 2025 investor presentation, DroneShield had 310 projects in its pipeline for 2025–2026, including 13 valued at over AU$30 million each. The company also noted continued growth in defense spending on counter-drone technology, with governments worldwide prioritizing electronic warfare and unmanned-air-system countermeasures as part of their modernization programs.
Streetwise Ownership Overview*
DroneShield Ltd. (DRO:ASX; DRSHF:OTC)
DroneShield's continued R&D investments, including the Adelaide facility, align with its strategy to enhance AI-powered software and develop modular detection platforms capable of countering next-generation drone threats. The company's product suite integrates hardware, artificial intelligence, and software-as-a-service tools used in both defense and civilian applications.
Ownership and Share Structure
Recent filings reveal that Vanguard Group has become a substantial shareholder in DroneShield, holding a 5.45% stake, Fidelity Management and Research holds approximately 8.51% and State Street Corporation holds approximately 6.42%.
Management and insiders hold 1.30%, according to the company.
DroneShield has 874.72 million (874.72M) outstanding shares and 863.3M free float traded shares. Its market cap is AU$5B. Its 52-week range is AU$0.58–AU$6.70 per share.
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- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneShield.
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