Counter-UAS (C-UAS) vendor DroneShield has announced its second contract win in two weeks. This latest win is with the US Government for US$33 million. The contract is for DroneShield equipment and multi-year services. The press release was remarkably light on detail, presumably owing to it being a military contract.
According to Matt McCrann, CEO, DroneShield US, “We’re honored to receive this award and support this customer. This award is a result of their trust in DroneShield and our solutions, and reflects our commitment to their mission.”
The other contract the company won was announced on the 4th of July. It is a US$9.9 million R&D contract with a five-eyes Department of Defence (the country was not named). It is a follow-on contract. The previous contract for US$3.8 million was completed in July, although it was signed on the 4th of June 2021. It is not expected to be the last with this customer, with DroneShield expecting more follow-on contracts in the future.
A spectacular year for DroneShield
The increase in demand has been good for DroneShield. It has already banked $7 million in cash receipts during 1Q23. It is expecting that to be followed by a record 2Q23 leading to 2023 being its best year on record. Such success brings challenges. One of those is the ability to manufacture enough products to meet demand. The company has announced it will be moving its operations in Sydney to a larger industrial site soon.
A $29 million order book is just the start of the next round of success. The company is bidding on contracts that could be worth up to $200 million spread across 80 separate projects.
It is also worth noting that while military contracts often get the most attention, there is a growing demand for C-UAS systems from civilian companies. Protection of critical national infrastructure, including power grids and airports, is feeding through into sales opportunities. It will be interesting to see what contracts the company announces next and whether those are civilian or military.
Enterprise Times: What does this mean?
DroneShield provides several solutions for C-UAS. These range from handheld solutions to vehicle-borne options. It also delivers long-range countermeasures for drone defence. As the war in Ukraine has shown, such solutions are increasingly in demand as the use of drones for warfare intensifies.
The challenge for the company will be staying ahead of competitors. Warfare has a habit of accelerating R&D spend by governments. Ukraine is providing a good opportunity for DroneShield to prove its effectiveness but, so are its competitors. It will be interesting to see how much money the company announces for R&D to stay ahead of the competition. With the integration of Epirus now complete, how long before it looks for another acquisition?
