DroneShield Balances Record Growth with LAND 156 Outcome

Key Highlights:

• DroneShield not selected as Systems Integration Partner (SIP) for Australia’s $1.3bn Project LAND 156 program.
• LAND 156 SIP contract awarded to Leidos Australia, valued around $45m.
• DroneShield retains existing LAND 156 contracts worth ~$5m for handheld and mobile systems.
• HY25 results delivered record revenue of $72.3m and $5.2m profit before tax.
• Global demand surges with $61.6m European contract and strong traction in Ukraine.
• Market cap: $2.78B; Shares trading at A$3.18 (-0.63%) as of 1:10pm AEST, 28 August 2025.
  
   

LAND 156 Program: A Strategic Crossroads

DroneShield Ltd (ASX: DRO) today updated investors on its position within the Australian Department of Defence’s Project LAND 156, a $1.3 billion, decade-long initiative aimed at strengthening Australia’s counterdrone capabilities.

The company confirmed it was not selected as the Systems Integration Partner (SIP), a role awarded to Leidos Australia, under a contract reportedly valued at $45 million.

While the outcome may appear as a setback, DroneShield highlighted that it has already secured two contracts under the initial phase of LAND 156, including a ~$5m deal announced on 24 July 2025 for handheld and fixed-site solutions. A second, smaller contract was also executed but fell below disclosure thresholds .

CEO Oleg Vornik struck a measured tone, noting DroneShield’s existing work under the program and the scale of opportunities ahead. With over $1.25 billion of LAND 156’s budget still to be allocated, the company believes it remains “well positioned to play an ongoing role” as additional tenders are released over the next decade .

Record Financial Momentum

The LAND 156 update coincides with DroneShield’s HY25 results, where the company reported:

• Revenue: $72.3m (up 210% YoY).
• Profit before tax: $5.2m, marking a turnaround from losses in prior years.
• Customer receipts: $60.7m, up 185% YoY .
  
   

A strong order pipeline underpins momentum, with FY2025 secured revenue now exceeding $176m, buoyed by the record-breaking $61.6m European contract signed in June .

Source: DRO ASX Announcement 

Global Validation and Operational Expansion

Beyond Australia, DroneShield’s systems continue to see combat validation in Ukraine, where its AI-enabled detection and defeat equipment supports frontline operations. The company’s technology is now deployed across more than 30 militaries and law enforcement agencies globally .

Operationally, DroneShield is scaling up significantly:

• Expanding manufacturing capacity to $2.4bn annually by 2026, across Australia, Europe, and the U.S.
• Growing its workforce from 250 to over 370, strengthening R&D, sales, and engineering teams .
• Advancing AI-driven upgrades (RFAI-2, RFAI-3, and DroneSentry-C2 enhancements) scheduled for release through late 2025 and 2026 .
   

Market Context: Defence Tech on the Rise

Drone warfare remains central to modern conflict, reshaping military procurement priorities. Programs like LAND 156 mirror global initiatives to accelerate domestic production of counter-uncrewed systems.

Analysts have flagged DroneShield as a key beneficiary of this shift, with revenue diversification already evident:

• 61% of revenue now from fixed-site solutions, up from 19% in FY2024.
• Strong regional balance: U.S. (20%), Europe (16%), and Asia Pacific (27%) .
  
   

Outlook: A Balanced Narrative

While DroneShield’s non-selection as LAND 156 SIP could weigh on short-term sentiment, the company’s record financial performance, expanding global footprint, and strong contract pipeline provide a compelling counterbalance.

With over $1.25bn of LAND 156 still to be allocated, DroneShield maintains exposure to future program phases. Its continued alignment with Australia’s sovereign defence agenda, alongside operational successes in high-threat theatres like Ukraine, underline its positioning as a long-term player in the counterdrone sector.

At the time of writing this article, DRO Shares were trading at A$3.18, giving the company a market capitalisation of $2.78 billion.