DroneShield wins $9.9 million Five Eyes DoD Contract

Sydney-based DroneShield Ltd has been awarded a follow-on 2-year R&D contract worth $9.9 million by a Five Eyes Department of Defence (DoD). The award follows DroneShield materially completing the $3.8 million contract announced 4 June 2021 with the same DoD.

The company has not named the customer.

 “Follow-on contracts are the ultimate customer measure of our performance,” said Oleg Vornik, DroneShield’s CEO. “This is the largest long-term contract received by DroneShield to date, significantly larger than the earlier, $3.8 million contract. The 2-year term locks in cash receipts over a period of time. Further larger contracts are anticipated following completion of this phase,” he added.

In the current uncertain geopolitical environment, there is a significant focus by the Five Eyes Governments on procurement from sovereign defence industrial capability champions within their network of countries, said Vornik. DroneShield is in a favourable position for ongoing work, having deep engineering and research capability, TRL9 products and a track record of working with Defence.

DroneShield’s current order book stands at $29 million, an all-time record, says the company. It is looking at more than $200 millions-worth of further qualified opportunities, across approximately 80 projects as it deals with ongoing record demand for counterdrone / C-UAS equipment, underscored by the events in Ukraine and increasing defence and security budgets globally.

In addition to military and intelligence communities, DroneShield says it is also engaging with operators of critical infrastructure plants, airports and with other civilian customers.