- 01DroneShield reports $261m in FY26 committed revenue, within its $250m-$270m outlook.
- 02Committed revenue is up 35% year-on-year.
- 03Recurring revenue rose 229% to $11.5m in H1 2026.
DroneShield (ASX: DRO) has reached $261 million in committed revenue for financial year 2026, placing its confirmed business at the midpoint of the $250m to $270m annual revenue outlook established in July.
The counter-drone technology developer reported the figure as at 12 October, representing a 35% increase on the comparable October 2025 position and equivalent to 121% of its revenue for the whole of 2025.
Its committed revenue includes sales already recognised alongside confirmed purchase orders scheduled for delivery during the relevant period, rather than representing entirely booked accounting revenue.
With a further $29m committed for FY2027 and $17m for FY2028 and later years, the group is positioning its expanded manufacturing, software and customer support operations for future demand.
Its implied weekly revenue requirement for the 2026 outlook is between $4.8m and $5.2m, compared with an adjusted $3m weekly rate for 2025 that excludes the group’s largest single order.
Ex-Military Order Growth
DroneShield company has reported a growing contribution from customers outside the military sector, which accounted for 15% of revenue in the first half of 2026 compared with 85% from military customers.
Europe and the United Kingdom contributed 52% of first-half revenue, followed by Latin America, the Middle East and other markets at 22%, the US at 17%, and Asia-Pacific at 9%.
“2026 has been an important year when foundations have been reset, the platform has been built out, and we prepare for continued scale and growth in 2027 and beyond,” chief executive officer Angus Bean said.
“Committed Revenue give us valuable visibility into future periods, with growing evidence of DroneShield’s leading role in the counter-drone industry.”
Diverse Earnings Mix
DroneShield is pursuing more repeatable income through Mission Ready Services, launched on 1 October to bundle software updates, training, and specialist support into a recurring subscription offering.
The group had 4,200 software-enabled devices in its installed base as at 12 October, creating an existing platform for continuing service subscriptions.
Recurring revenue in the first half of 2026 reached $11.5m, a 229% increase on the corresponding period, and represented 9.2% of total revenue against 4.9% a year earlier.
Its latest hardware program includes RfRecon, for which it has received initial orders from a Western European military customer and is targeting first deliveries by the end of 2026.
The related RfAI-3 software platform forms part of a broader next-generation product roadmap expected to extend through 2027.
Improved Operational Planning
The expansion is supported by a new 3,000-square-metre Australian facility, manufacturing capability in Europe and enterprise-wide systems intended to improve procurement and operational planning.
DroneShield had 519 employees at the end of September, down from 537 at the end of June, as it balances selected recruitment with organisational and leadership changes.
At 30 June, it held $180m in cash and term deposits with no debt, alongside $85m in inventory comprising raw materials and finished goods.
Its first-half gross margin was 60%, compared with 65.3% a year earlier, reflecting factors including third-party product sales and inventory-related charges.
The group is seeking to improve margins through next-generation product pricing, a larger subscription base, and tighter inventory management while pursuing further orders and building the FY2027 pipeline.
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