Counterdrone market set to grow “much higher”, DroneShield’s Vornik says

DroneShield (ASX: DRO) has just delivered a blowout 1H25 result - revenue surged 210% to $72.3m, customer cash receipts climbed 185% to $60.7m, and the company swung from a $4.8m loss to a $2.1m profit after tax. EBITDA also turned positive at $5.2m, a $10.1m improvement year on year.

It’s against this backdrop that we sat down with CEO Oleg Vornik to discuss the rapidly growing counterdrone market, why demand is accelerating globally, and how DroneShield is positioning itself for the next leg of growth.

“Small drones are not going away. We’re seeing an enormous amount of situations where they’re used nefariously - from narcos in Latin America, to terrorists in Africa, Chinese drones in APAC, European governments, and of course Ukraine. This is the future of warfare," he says.

Demand is real (and accelerating)

Drones don’t replace traditional defence assets like tanks, but they can destroy them cheaply. That’s why customers across the globe are rapidly investing in detect-and-defeat technology.

The demand is real, and it’s been supercharged by NATO’s 5% defence spending commitment.

From hardware to SaaS

DroneShield’s business model is also evolving. As new drones emerge, the company must continually develop new hardware and update its technology. Because adversaries are constantly innovating, DroneShield’s clients have no choice but to keep paying in order to protect military assets and national security.

That’s why Vornik sees the company becoming more like a SaaS business: recurring revenue, sticky customers, and a product that becomes critical infrastructure for defence forces.

“The counterdrone market is here not just to stay, but to grow much higher than where it is today. DroneShield is very well positioned as the industry pioneer, delivering cutting-edge technology and being connected to end users globally," he says.

Investing in scale

DroneShield is now investing in manufacturing hubs in the US and Europe. Vornik explains this is designed to meet global demand while managing capital risk — likening the strategy to Apple outsourcing to Foxconn.

At the same time, the company is building a $2.4 billion pipeline, which Vornik argues is only the beginning. Customers are testing and learning the technology, often in small deployments, before moving to larger orders.

Key themes from the interview

• Counterdrone demand is accelerating, amplified by NATO’s spending push.
• DroneShield’s revenue model is shifting towards SaaS-like characteristics.
• AI integration is a key differentiator that Vornik believes cements DRO’s leadership.
• Investments in US and European manufacturing hubs are critical to scale while containing risk.
• The Australian government remains a supportive partner, and Vornik notes the advantage of being an Australian citizen leading a local company.

Time codes

• 00:00 – Intro
• 00:58 – What exactly does DroneShield do?
• 1:55 – On the back of 1H25 results, how sustainable are the revenue streams?
• 5:57 – The largest increase in defence budgets since WWII: how it flows into drones and counterdrone technology.
• 8:20 – DroneShield’s $2.4b pipeline, competitors, and SaaS-like revenues.
• 14:26 – Why DRO is investing in manufacturing hubs in Europe and the US, and the “Apple–Foxconn” analogy.
• 17:27 – How much business DRO is doing in Australia and the advantage of an Australian CEO.
• 19:19 – How DroneShield uses AI in its technology and why this is a differentiator.
• 23:22 – Key signals investors should watch for the company.

That was our final interview for the August 2025 reporting season. Check out the good, the bad, and the ugly of results season below — and stay tuned as we resume reporting season interviews in February 2026.

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