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Military defence technology group DroneShield (ASX: DRO) is making inroads into the Latin American market after announcing a $9.7 million order from a major military customer.
The order, comprising a combination of dismounted, mobile and fixed-site counterdrone systems (C-UxS), has been secured by an undisclosed in-country reseller and marks the first deal with this party and the end customer for the group. The country involved has not been disclosed.
DroneShield describes the in-country reseller is “an established local entity and one of the leading integrators and resellers of advanced technological solutions in its country with over 19 years of sales and having successfully executed more than 165 defence-related contracts, including to the relevant government end customer”.
The latest agreement follows an $8.2 million contract announced last month from a major European military customer for dismounted and vehicle-mounted counterdrone systems – a repeat contract from this customer.
DroneShield anticipates delivery of the Latin American contract to occur in the first half of 2025, with 80 per cent of the payment expected prior to shipping and the balance on delivery.
“DroneShield has spent much of 2024 scaling its presence in the Latin American market and has built a substantial pipeline diversified over multiple countries,” says DroneShield CEO Oleg Vornik.
The CEO is expecting to secure more contracts in Latin America and grow its business there following the appointment of a dedicated sales director for the region last year.
The latest contract expands Droneshield’s geographic reach, which currently covers the US, Europe, Asia and the Middle East as well as Australia, with a sales pipeline totalling $1.1 billion.
Asia, excluding China, remains the company’s biggest market, accounting for $656 million of this total across 17 projects.
This is followed by Europe, where it has 34 projects worth $241 million in train, and the US which comprises 46 projects worth $148 million.
The company says an increase in the use of nefarious drones is driving business growth which saw a 108 per cent increase in revenue to $23.99 million in the six months to the end of June last year.
DroneShield posted a net loss of $4.8 million for the period, although most of that was due to share-based payment expenses.
The company has previously noted that its business growth is being supported by a surge in demand for counterdrone services and a broader increase defence and security budgets globally.
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