Drone defence technology group DroneShield (ASX: DRO) has secured a $25.3 million contract in Latin America in the largest order yet from a privately owned in-country reseller that has previously placed seven orders with the Sydney-based company.
DroneShield, which recently reached a milestone 4,000 systems sold globally since inception, says the previous seven sales to the reseller totalled about $2.9 million over six years between 2019 and 2025.
“With this new contract, DroneShield continues to position itself as one of the preferred C-UAS (counter unmanned aerial system) systems in Latin America,” says Oleg Vornik, DroneShield’s CEO.
“As demand continues to evolve, DroneShield is ready to meet the requirements from a region where drones play a key role in the modern warfare”.
The latest contract to a government defence end customer in Latin America follows DroneSheild locking in a $61.6 million contract in June this year, its biggest ever order, which was placed by an undisclosed military client in Europe.
The company typically does not reveal the identity of its clients and, in today’s announcement, says it does not consider the identity of the Latin American reseller to be information that a “reasonable person would expect to have a material effect on the price or value” of the company’s shares.
DroneShield last month revealed revenue of $92.9 million in the latest September quarter, up from $7.8 million a year earlier, as the business continues to gain traction in its key global markets.
The company says a deteriorating geopolitical and security situation around the world has led to an acceleration in defence spending, noting that Ukraine has “irreversibly brought drones and counterdrone solutions” into the mainstream of conflicts.
The company, which provides a range of hand-held and field deployed counterdrone solutions to clients, says the drone problem is “new and evolving”, with the civilian market representing a US$28 billion total addressable market opportunity.
To support its growth, DroneShield last month announced a $13 million investment in an Adelaide research and development facility to support its existing Sydney manufacturing and head office operations.
DroneShield expects to deliver all equipment required for the latest Latin American contract over the current quarter and the March quarter next year, with cash payments expected to be received in each of these quarters.
DroneShield shares were 20c higher at $4.03 at 12.27pm (AEDT).
The company’s stock hit a high of $6.70 last month after starting the year around 60c.
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