Droneshield Ltd Lands $23.2M European Contracts and Lifts FY2026 Guidance

DroneShield lands $23.2M European military package as new revenue guidance issued

Counter-drone technology specialist DroneShield has announced three simultaneous developments on 28 July 2026: a $23.2 million package of European military contracts, the release of its next-generation RfAI-3 RF detection engine, and a trading update ahead of half-year results.

The developments underscore momentum in Europe, a key growth market for the company. Backing this, management provided full-year FY2026 revenue guidance of a range of $250M to $270M, supported by strong demand conversion across the first half.

$23.2M in European military contracts secured

DroneShield has received a package of two contracts for the supply of vehicle-mountable counter-drone solutions, comprising hardware, subscriptions, warranties and services. Deliveries are scheduled to take place across 2026 from existing planned production.

The key terms of the package include:

• Aggregate value of $23.2 million

• Approximately $21 million forms part of FY2026 Committed Revenue, with the balance being future period subscription revenue

• The reseller is COBBS BELUX BV, one of DroneShield’s long-standing resellers in the Benelux region, required to distribute the products to a European military end-customer

• The contract also requires DroneShield to purchase and deliver third-party hardware

DroneShield confirmed there are no obligations for additional contracts from this reseller or the end-customer. The identity of the end-customer has not been disclosed, with the company stating it does not consider this information to be material to the price or value of its securities.

The European package follows a similarly structured US military contract secured in June 2026, where DroneShield was awarded a $24.9 million agreement with JIATF-401, the central counter-drone coordination body of the US Department of War, with at least $10 million of that value committed to FY2026 revenue.

Angus Bean, CEO and Managing Director

“We are pleased to continue our engagement with leading partners and end-customers in Europe, which is a key growth market for DroneShield. These awards demonstrate the strength of our regional partnerships and the relevance of DroneShield’s technology in complex military environments. It also validates our continued investment in personnel, manufacturing capability and partner relationships in the region.”

RfAI-3: A new generation of RF detection

DroneShield unveiled RfAI-3, the third generation of its proprietary radio frequency intelligence engine for counter-drone detection. The company describes the release as a significant evolution in counter-drone doctrine, designed to detect drones that are not present in existing RF signature libraries.

Conventional RF detection relies on a classified emitter model, where an airframe must already be catalogued before it can be identified. RfAI-3 applies wideband detection to identify emissions across the spectrum, compare them against previously observed drone signatures, and generate new signatures for unknown emissions with a confidence assessment for operator review.

Key details on the release include:

• RfAI-3 is specifically designed for DroneShield’s next-generation hardware platforms

• Initial hardware releases are expected to commence in H2 CY2026, with further releases through 2027

• The existing product lineup continues to be supported under the company’s software subscription model, including ongoing delivery of expanded emitter coverage

Angus Bean, CEO and Managing Director

“The threat that matters most is the one we have not yet encountered, and by the time we encounter it a second time, it will have changed again. The world is moving to software defined radio, where waveforms can be rewritten in software and the spectrum has become a genuinely dynamic battlespace. RfAI-3 is our answer to that. Its ultra-wideband nature means we are no longer limited to detecting only what we already know, which changes the calculus for our operators and for the adversaries trying to evade them. This is the start of the next generation of DroneShield’s product roadmap.”

Why detecting the unknown matters

Drones typically emit radio frequency signals when communicating with their operators. Traditional counter-drone systems identify these threats by matching detected signals against a library of known drone signatures. The limitation is straightforward: a drone that has been newly built or modified may not appear in that library, allowing it to slip through undetected.

The industry is increasingly shifting towards software-defined radio, where the waveforms a drone uses can be rewritten in software rather than fixed in hardware. This makes the radio spectrum a dynamic environment where threats can change rapidly. By generating new signatures for unknown emissions rather than relying solely on a pre-catalogued library, RfAI-3 is positioned to keep DroneShield’s technology relevant against evolving threats. For investors, this also reinforces the company’s subscription and recurring revenue model, which delivers expanded emitter coverage over time.

1H 2026 preliminary results and upgraded guidance

DroneShield provided a preliminary trading update for the six months ended 30 June 2026, ahead of the release of its full financial results. All 1H 2026 figures are provisional and subject to end-of-period adjustments and review by the company’s external auditor.

Further detail from the preliminary update includes:

• FY2026 Committed Revenue as at 28 July 2026 stood at $206 million, of which approximately 13% is Recurring Revenue. This represents 95% of FY2025 total revenue

• Committed Revenue for FY2027 and beyond was $26 million, comprising a mix of hardware, software, warranty and other services revenue

• The gross margin reduction was attributed to the sales mix between DroneShield solutions and third-party hardware, currency movements, and raw material impairment identified in the relocation to the new production facility and implementation of a new ERP software system

The company’s Committed Revenue progression illustrates the pace of demand conversion, rising from $93M on 1 January 2026 to $206M by 28 July 2026.

Full-year outlook

Based on FY2026 Committed Revenue and orders anticipated across the balance of the year, DroneShield now expects total revenue in FY2026 to fall in the range of $250M to $270M, which is 15% to 25% higher than FY2025.

The company noted that orders secured in the final months of the year are more likely to form part of Committed Revenue in FY2027 and beyond. It is targeting a blended gross margin of around 65%, which is expected to be supported in the second half by the impending launch of its next-generation hardware and increasing subscription revenue.

Angus Bean, CEO and Managing Director

“As at 28 July 2026, committed revenue for this calendar year is $206m, which is already near the record revenue delivered across the whole of 2025, and there is still five months of the year to run. This is powerful validation of the relevance of our solutions, the quality of our people, and the strategy we are executing.”

The investment case: Momentum, margins and a new product cycle

The three developments combine to reinforce DroneShield’s growth narrative across demand, revenue and product innovation. Key considerations for investors include:

1. Demand conversion — the European growth market has been validated by the fresh $23.2 million contract package

2. Revenue trajectory — 74% first-half revenue growth alongside upgraded full-year guidance of $250M–$270M

3. Recurring revenue base — a building subscription model, contributing 11.3% of 1H 2026 revenue

4. Next-generation product cycle — RfAI-3 and new hardware platforms positioned to begin contributing from 2027

Bean referenced the leadership transition completed in April 2026 as a structured process, noting the company undertook a detailed organisational assessment focused on sustaining growth alongside disciplined cost management and operational resilience.

The Angus Bean CEO appointment in April 2026 marked a formal succession from founding CEO Oleg Vornik, with Bean’s decade-long product leadership cited as central to the transition; at the time, committed revenue of $140 million had already been contracted just three months into FY2026.

Key dates for investors

• 1H 2026 results: Wednesday 26 August 2026

• Investor call: 9:00am AEST, Thursday 27 August 2026

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