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TICKERS: DRO; DRSHF

Counter-Drone Leader Gains Key UK Approval

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The DroneShield Ltd. (DRO:ASX; DRSHF:OTC) DroneSentry counter-drone system earned official recognition from the UK's National Protective Security Authority. The NPSA listing validates the company's AI-driven defense technology and strengthens its position in global security markets.

DroneShield Ltd. (DRO:ASX; DRSHF:OTC) announced that its DroneSentry counter-drone solution has been recognized by the United Kingdom's National Protective Security Authority (NPSA), a government agency responsible for evaluating and approving security technologies. The inclusion of DroneSentry in the NPSA's Catalogue of Security Equipment (CSE) followed a detailed assessment process, granting the system an official government standard rating for counter-drone performance.

The NPSA recognition provides formal validation of DroneSentry's capabilities as a multi-layered counter-drone solution integrating radar, optical, and radio frequency sensors with artificial intelligence-enabled command and control software. DroneSentry is designed to detect, track, and mitigate unauthorized drones across military, government, and civilian environments.

Within the United Kingdom, DroneShield's solutions are available exclusively through BT. Dave Pankhurst, BT's Future Connected Solutions Director, said, "BT has worked with DroneShield for a number of years in the UK, coupling our deep understanding of customer needs with DroneShield's technology. This NPSA recognition highlights DroneShield's commitment to developing leading-edge counter-drone solutions with the most robust security credentials."

DroneShield CEO Oleg Vornik stated in the announcement, "This is an exciting step forward and a public endorsement of the quality and performance of our solutions, for both the UK and other markets. It comes at a critical geopolitical time of rapidly escalating drone incidents across Europe, as our customers seek to deploy counter-drone protection across a wide range of facilities."

The company noted that DroneSentry's AI-enabled DroneSentry-C2 software, which formed part of the NPSA evaluation, serves as a command-and-control platform integrating multiple sensors and effectors. The software can be customized through a subscription-based model to align with end-user requirements and budgets.

Counter-Drone Innovation Reshaping the Defense Landscape

A report published October 7 by Military Embedded Systems described how the U.S. defense community continued to highlight emerging technologies, including counter-drone systems, as central to future capability development. At the Association of the U.S. Army's Annual Meeting in Washington, D.C., the EarlyBirds Defense Innovation Platform was unveiled to accelerate the adoption of technologies such as artificial intelligence, cyber operations, counter-UAS systems, quantum sensing, and hypersonics. The platform connects innovators with defense agencies to address capability gaps through rapid prototyping, research collaborations, and technology deployments.

Recent advances in counter-unmanned aerial systems (C-UAS) technology have underscored the sector's rapid evolution in response to the growing use of low-cost drones in modern warfare. A report from Breaking Defense on October 13 highlighted how modular sensors, artificial intelligence–driven response software, and swarm-defeat technologies are redefining the defense landscape. The article noted that the global C-UAS battlespace had reached a pivotal stage, driven by the need for scalable and cost-effective solutions capable of addressing both military and civilian security challenges.

According to defense analysts, modern counter-drone architectures now rely on integrated, layered systems that combine radar, optical, infrared, and electronic countermeasures within a unified command-and-control environment. These multi-layered approaches allow rapid identification and neutralization of drone threats, from single aircraft to coordinated swarms. As artificial intelligence improves detection and automation, decision-making times are decreasing, allowing faster responses in complex operational environments. The shift toward modular and mobile systems also reflects a broader industry trend toward agility — enabling counter-drone defenses to be deployed on land, sea, or air platforms depending on mission requirements.

On the industrial technology front, new developments in automated defense systems continue to advance the counter-drone sector. Reporting from the Online Robotics Trade Magazine on October 13 described ongoing efforts to integrate motion control, power management, and electronic warfare systems into cohesive counter-UAS frameworks. The article highlighted government-collaborated programs emphasizing flexible, layered protection designed to defend both fixed installations and rapidly deployable assets in active zones.

Analyst Confidence Supported by Record Financial Performance

A Shaw and Partners equity report dated October 1 maintained a Buy rating on DroneShield Ltd. with a price target of US$3.60. Senior Analyst Abraham Akra cited the company's strong positioning in the counter-uncrewed aerial systems (C-UAS) market and its ability to capitalize on growing global demand for drone defense technologies. Akra noted that a series of drone incursions across Europe had accelerated interest in C-UAS solutions, particularly following the European Union's proposal to construct a "Drone Wall" along its eastern border. He stated that "passive RF (radio frequency) sensing and AI fusion favour DroneShield, whose portable DroneSentry kits scale cheaply," and described  non-kinetic disruption systems as "the cheapest, most scalable first layer of C-UAS defence."

Akra highlighted DroneShield's artificial intelligence integration as a key differentiator, writing that "AI-driven assessment makes DRO best in class," with its DroneSentry platform enabling rapid threat classification, reduced false positives, and lower operator workload. He further observed that non-kinetic jamming remained the dominant approach to C-UAS defense due to its cost efficiency and adaptability in complex environments. The report concluded that DroneShield had reached "an inflection point in sales and profitability," supported by its agreement with NATO and a U.S. Department of Defense recommendation that "solidified DRO as a market leader in jamming C-UAS."

In a separate report on October 2, The Motley Fool attributed recent share price volatility to short-term profit taking following substantial gains, rather than any change in fundamentals. The publication noted that investors had responded positively to reports of the European Union's "drone wall" initiative and stated that "the market seems to believe that DroneShield is well-positioned to benefit from this plan."

A subsequent research note from Bell Potter Securities analyst Baxter Kirk, dated October 7, viewed DroneShield's planned AU$13 million investment in its new Adelaide research and development facility as a significant step in reinforcing its competitive position. Led by former Lockheed Martin Australia defense engineering leader Jeff Wojtiuk, the facility will expand 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 workforce had already surpassed 400 employees, slightly ahead of projections.

The firm stated, "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."

Strengthening Global Position in Counter-Drone Technology

DroneShield's NPSA recognition coincides with record operational and financial results. According to its August 2025 investor presentation, the company reported first-half 2025 revenue of AU$72.3 million, an increase of 210% from the prior year, and a profit before tax of AU$5.2 million, marking the most profitable half-year in its history.

The company's sales pipeline grew to AU$2.34 billion as of August 2025, supported by expanding demand for counter-drone and electronic warfare systems in North America, Europe, and Asia. DroneShield also reported a cash balance of AU$207.9 million and continued to invest more than AU$50 million annually in research and development focused on AI-powered hardware and software integration.

streetwise book logoStreetwise Ownership Overview*

DroneShield Ltd. (DRO:ASX; DRSHF:OTC)

*Share Structure as of 9/26/2025

DroneShield's technology portfolio includes both portable and fixed-site counter-drone systems supported by its proprietary AI-based software, including DroneSentry-C2 and Radiofrequency AI (RFAI). These solutions enable real-time detection, classification, and response to drone threats across multiple domains.

The company's strategy centers on growing its software-as-a-service (SaaS) revenue base, establishing manufacturing hubs in Europe and the United States, and expanding into civilian markets. Management emphasized that the company's technology is designed to address the increasing complexity of modern drone threats while supporting governments and commercial operators seeking integrated, scalable protection systems. 

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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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneShield.
  2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  3.  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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