DroneShield turns profit through tech sales

By Max Blenkin | Canberra

Australian drone countermeasures company DroneShield has recorded its first ever profit, thanks to global proliferation of small drones, and the conflicts in Ukraine, Middle East and Red Sea.In 2023 results released on 28 February, DroneShield reported a five-fold increase in cash receipts to $73.5 million, and an after tax profit of $9.3 million, making FY23 the company’s first profitable year.DroneShield continues to ramp up production capabilities, relocating its headquarters and production to a three times larger space in Pyrmont, Sydney.

With expansion of supply chain partners, DroneShield is positioned for a $300-400 million annual production capacity.DroneShield was founded in 2014 in the US then relocated to Australia, listing on the Australian Securities Exchange in June 2016.The company makes a range of radio frequency drone detection and countermeasures systems.Perhaps best known is the company’s DroneGun, a vaguely rifle shaped device which when “fired” disrupts the targeted drone’s electronics, making it land or default return to its point of origin. Demonstrating the effectiveness of DroneShield technology, 80 per cent of revenue comes from repeat customers.DroneShield’s annual report says it has grown from a small startup to a global leader in C-UAS detection and mitigation.Company chairman Peter James said 2023 was truly a transformational year featuring strong sales and substantial tailwinds for the defence industry, with growing geopolitical tensions and an increase in government spending in Australia and other markets.He said drones and counter-drone systems were now used in every conflict globally including the Ukraine war, Hamas attacks on Israel, Houthi attacks in the Red Sea and most recently attacks on the US bases in Jordan which killed three and injured more than 30.Nefarious use of drones was a global and rapidly rising threat with DroneShield providing a proven market leading suite of solutions.“The US government and military market is expected to be the single largest opportunity for DroneShield, being the largest counter-drone customer in the world and accounting for 68 per cent of the company’s 2023 revenues,” he said.Australia is the second largest customer, accounting for 23 per cent of revenues.During 2023, Australia contracted $10 million for deployment of DroneShield technology to Ukraine as well as a $10 million electronic warfare contract.“At the macro level, international tensions and greyzone warfare, which C-UAS and electronic warfare are a key part of, continue to rise, driving increases in security and national defence budgets,” Mr James said.“The company currently offers its products in over 70 countries and the diversity of its pipeline is one of is key strengths.”

Source : DroneShield turns profit through tech sales - Australian Defence Magazine