DroneShield traded as the weakest stock on the ASX 200 after releasing preliminary figures for the six months to 30 June, with the share price down 7.8% to $1.92 by 11:20am AEST. The company expects first-half revenue of $125.8 million, representing a 74% increase on the same period last year. Management projects a gross margin of 60% for the half, narrowing from 65% a year earlier. The update covers unaudited numbers and focuses on revenue performance and margins.
Executives also set out full-year expectations, leaning on already committed revenue and anticipated orders for the remainder of the year. DroneShield now forecasts total FY revenue in a range of $250 million to $270 million. That bracket implies growth of between 15% and 25% compared with FY25 levels. Contracted backlog and near-term deals underpin the confidence in those numbers.
Investors focus on the margin compression and the gap between strong revenue growth and the weaker share price reaction. A lower gross margin suggests higher costs or pricing shifts, even as the top line accelerates.
