DroneShield Shares Soar on Record Orders and Capacity Expansion

Shares of counter-drone technology firm DroneShield Ltd. surged to a fresh 52-week peak this week, propelled by a series of major defense contract wins that are now translating into revenue. The stock climbed approximately 18% on Tuesday to close at A$3.92, reflecting renewed market confidence in the company's near-term financial prospects.

The company's accelerating growth trajectory was underscored by its third-quarter 2025 financial results. Revenue for the period reached A$92.9 million, representing a staggering year-on-year increase of 1,091%. This explosive growth is being supported by a significant expansion of manufacturing capabilities.

A new, state-of-the-art production facility spanning 3,000 square meters recently became operational in Alexandria, Sydney. Management has outlined ambitious annual production capacity targets for this site:
* Approximately A$900 million by mid-2026.
* Roughly A$2.4 billion by the end of 2026.

This infrastructure is considered critical for fulfilling large orders efficiently, including a landmark European contract, without major supply chain bottlenecks.

A Series of Major Contract Wins Fuels Momentum

The core driver behind the recent share price rally is a cluster of substantial contract announcements from December 2025. The market is positively reassessing the company's ability to convert its sales pipeline into realized income.

The most significant award is a A$49.6 million contract from a European military client for portable counter-drone systems. Announced in mid-December, the agreement is scheduled for full delivery and payment within the ongoing first quarter of 2026.

Should investors sell immediately? Or is it worth buying DroneShield?

This major deal was supplemented by two additional contract victories late in the year:
* On December 30, 2025, a Western military customer ordered additional counter-drone solutions worth A$8.2 million.
* A regional military client in the Asia-Pacific region placed a A$6.2 million order on December 23, 2025.

Collectively, these contracts have substantially strengthened the company's order book, directly addressing prior market skepticism about the timing of its pipeline conversion.

Market Sentiment and Technical Perspective

Trading activity has been characterized by high volume and volatility. The stock's decisive break above a key technical resistance level of A$3.31 is viewed by traders as indicative of sustained buying interest.

The shifting fundamental picture is also reflected in analyst actions. Research firm Bell Potter recently reaffirmed a price target of A$4.40 for DroneShield shares, suggesting further potential upside from the current level around A$3.92.

The share price recovery is particularly notable given the pressure experienced in November 2025, when insider selling weighed on sentiment. That overhang is now widely seen as priced into the market. Investor focus has returned to the execution of the company's reported A$2.5 billion sales pipeline.

Furthermore, DroneShield's inclusion in the S&P/ASX 200 index is expected to enhance liquidity and attract greater institutional investment. As 2026 begins, the company is establishing itself as a volatile yet increasingly fundamentally-supported player within the defense technology sector.