Drone attacks? Shares of little known Australian defence company soar 373%
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Aalborg Airport in Denmark on Sept 25 was closed overnight after drones were observed over the airport.
PHOTO: EPA
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SYDNEY - A flurry of military contracts has fuelled a share surge for DroneShield, making the Australian drone technology manufacturer the best performing defence stock in Asia.
The stock has jumped 373 per cent in 2025, outpacing regional peers on a Bloomberg gauge focused on defence firms. A string of contract wins with governments in Australia, the US and Europe have boosted its shares, which joined Australia’s benchmark equity index earlier in September.
Drone attacks or threats have been in the news recently with the latest being sightings over Denmark’s airports.
DroneShield develops products to ward off drone attacks by tracking and disabling unmanned aircraft systems. Its stock surged in June after securing a package of European contracts worth A$61.6 million (S$52 million), its largest order ever. The firm also recently won a package of two US Department of Defence contracts totalling A$7.9 million.
Defence stocks have rallied in 2025 as ongoing conflicts and geopolitical tensions have spurred governments to ramp up spending. South Korea’s Hanwha Aerospace has benefited from its experience in producing weapons for defeating Soviet-era systems, while Chinese defence manufacturers rose in the lead-up to Beijing’s military parade in early September.
In August, DroneShield said its first-half revenue more than tripled from a year earlier. It attributed the increase to growth in regions beyond its key US market, including in Europe and the Asia-Pacific.
Still, some investors are sceptical of the stock’s surge. The firm’s “stretched” fundamentals at its A$3.2 billion market capitalisation is one reason to be cautious, said Mr Ben Richards, co-portfolio manager at Seneca Financial Solutions.
DroneShield trades at a forward price-to-earnings ratio of roughly 70 times, a premium to Australia’s S&P/ASX 200 Index.
Some directors have also sold shares in the company during rallies, “which is a warning sign for us”, Mr Richards added. BLOOMBERG
