DroneShield shares rise on US defense contract amid ASIC probe

DroneShield's stock showed a notable rebound, climbing 5.77% to €1.78 in Frankfurt and later gaining 6.45% to A$2.97 in Sydney. The lift follows a $24.9 million contract awarded by the U.S. Department of Defense’s Joint Interagency Task Force‑401, with options that could raise the deal to $30.5 million over five years. The company is also expanding its software focus for NATO markets and has partnered with Parsons, which integrated DroneShield’s DroneArmor sensor into its U.S. border‑security system.

Despite the positive market reaction, the Australian Securities and Investments Commission (ASIC) continues to investigate past share‑sale disclosures involving senior executives, a risk that analysts say could outweigh the recent upside. DroneShield reports a pipeline exceeding A$2.2 billion and expects full‑year revenue of around A$317 million, but the outcome of the ASIC review remains the central uncertainty for investors.