HighCom Limited has announced a HighCom Tethered Drone Defence Contract, with its subsidiary HighCom Technology awarded a contract to supply a Variable Height Antenna (VHA) tethered drone system to the Australian Department of Defence for test and evaluation activities. The contract, announced on 23 February 2026, marks HighCom’s entry into the tethered drone and passive aerial communications market through a partnership with U.S. aerospace solutions provider Menet Aero.
HighCom secures Defence contract for tethered drone system
The HighCom Tethered Drone Defence Contract represents an expansion of HighCom Technology’s product portfolio beyond its existing Small Uncrewed Aerial Systems (SUAS) and sensor payloads. The contract involves supplying Defence with a Tethered Unmanned Aerial System (TeUAS), which connects an uncrewed aerial vehicle via a tether to a ground station, creating a high-altitude mast solution.
The partnership with Menet Aero positions HighCom to explore collaborative opportunities across the APAC region. According to the announcement, the collaboration aims to accelerate capability development and deliver enhanced operational effects for defence and security customers.
This test and evaluation contract allows Defence to assess the VHA system’s operational suitability before potential larger-scale procurement decisions.
What are tethered drone systems and why Defence wants them
Tethered Unmanned Aerial Systems differ fundamentally from battery-powered drones by maintaining a physical connection to a ground station. This design addresses several operational limitations:
-
Continuous power supply eliminates battery constraints, enabling extended flight duration without interruption for recharging or battery replacement.
-
Secure wired data transfer provides enhanced communications security compared to wireless transmission, critical for defence applications.
-
Enhanced stability through the tether connection, particularly valuable in adverse weather conditions.
-
Persistent surveillance capability suitable for continuous passive monitoring and communications relay in field operations.
The systems are described as ideal for persistent passive surveillance and communication, replacing traditional high-altitude mast solutions with more flexible aerial platforms.
Strategic fit within HighCom’s defence portfolio
The tethered drone contract builds upon HighCom Technology’s existing defence capabilities. The subsidiary already supplies Australian Defence and Security Agencies with a range of systems and services, strengthening its position as a technology integrator.
HighCom Technology’s existing capabilities include:
- Small Uncrewed Aerial Systems (SUAS)
- Sensor Payloads
- Programme, Project and Engineering Management
- Systems Integration
- Maintenance and Composite Repairs
- Logistics Support Services
The addition of tethered aerial capabilities complements this portfolio, expanding HighCom’s role in communications and surveillance solutions. The company operates through two distinct business divisions: HighCom Armor (personal protection ballistic products) and HighCom Technology (defence systems and support services).
Defence industry positioning and next steps
Bede Galvin, Senior Advisor (Strategy and Business Development)
“This significant partnership and the signing of a contract with Defence underscores our market position as a key technology integrator bringing new capabilities, systems and support services to the Defence sector. Tethered drones address many of the field limitations of battery-driven drones in providing passive continuous surveillance and communications that are critical for defence personnel and operations in the field.”
The announcement emphasises collaboration with industry partners to accelerate capability development. As this is a test and evaluation phase contract, the company has indicated it will provide further updates as activities progress.
For investors, the HighCom Tethered Drone Defence Contract demonstrates HighCom’s ability to secure defence contracts through strategic partnerships and technology integration. Test and evaluation contracts can lead to larger procurement programmes if the technology proves operationally effective, potentially positioning HighCom (ASX: HCL) for follow-on opportunities in the persistent surveillance and communications market.
Further updates are expected as Defence’s test and evaluation activities advance.
Don’t Miss the Next Defence Technology Winner
Join 20,000+ investors receiving FREE breaking ASX news within minutes of release, complete with expert analysis. From defence contracts to tech breakthroughs, get market-moving announcements in your inbox before the crowd reacts. Click the “Free Alerts” button at Big News Blast to start receiving real-time alerts.