DroneShield expands European production amid ASIC probe and share slump

Australian drone‑defence firm DroneShield announced the launch of its first European serial production line for a counter‑UAS system, partnering with Dutch vehicle maker Defenture to integrate the technology into mobile tactical platforms. The move was showcased at the Eurosatory defence exhibition in Paris and aims to satisfy EU and NATO customers’ sovereignty and supply‑chain requirements.

The company reported a 121% year‑on‑year increase in first‑quarter revenue to A$74.1 million and secured full‑year revenue of A$161 million, driven by recurring SaaS contracts. Despite the strong operating results, the share price has fallen to about €1.66, more than 50% below its 52‑week high of €3.65, as the Australian Securities and Investments Commission (ASIC) investigates market communications and share‑trading activity from November 2025. DroneShield says it is cooperating fully with the regulator.

Analysts note that while the European production boost improves delivery times and reduces reliance on single supply routes, the ongoing ASIC inquiry adds short‑term uncertainty for investors and may increase compliance costs.