DRO.AX Stock Today: Record Profit, 12% Surge on Orders — February 25
DroneShield stock rallied after audited FY2025 results showed a 276% revenue jump to A$216.5 million, the company’s first net profit, and a A$2.3 billion order book. Shares of DRO.AX traded near A$3.39, up about 12% intraday. The move highlights rising demand for counter-drone orders and growing interest in defense tech stocks. For investors in Germany, today’s surge raises fresh questions about valuation, currency exposure, and how quickly the backlog can convert to cash in 2026.
Earnings and orders at a glance
Audited FY2025 results delivered headline growth and a turning point. Revenue rose 276% to A$216.5 million, marking DroneShield’s first net profit. The business benefited from larger system contracts and follow-on upgrades. While detailed margin lines were not disclosed here, TTM gross margin of 67.5% points to healthy unit economics. The news sparked broad buying interest as investors reassessed scale and durability of demand.
Management cited a A$2.3 billion order book, implying multi‑year visibility if execution stays on track. Capacity expansion and tighter governance were highlighted, alongside interest from European customers. German coverage noted the surge after results and orders, reinforcing momentum for DroneShield stock source and preview pieces flagged expectations ahead of the print source.
What today’s move means for valuation
At about A$3.39, DroneShield stock screens rich on several metrics. The latest snapshot shows a PE near 301.0, price to sales around 25.9, and price to book about 10.2. Such premiums can persist if growth and order conversion remain strong, yet they also raise downside risk if deliveries slip. Investors should weigh backlog quality, margin sustainability, and customer concentration when benchmarking against other defense tech stocks.
Near term technicals look mixed. RSI sits at 42, MACD is slightly below signal, and CCI near -120 suggests oversold conditions, while ADX around 26 indicates a firm trend. Price tracks close to the Bollinger middle band near A$3.28, with ATR of 0.25 pointing to active volatility. For timing, traders may watch closes above the upper band or improving MACD histograms for confirmation.
Implications for German investors
German investors typically access the ASX listing through multi-asset brokers, with trades settled in AUD. Returns will include currency effects when converting EUR to AUD and back. DroneShield currently pays no dividend, so the focus stays on price appreciation and contract flow. Check brokerage fees for international orders, review custody terms, and track any local trading windows that differ from Frankfurt hours.
We see DroneShield stock as a high beta defense technology play tied to counter-drone orders. Position sizes should reflect contract timing risk and premium valuation. For EUR portfolios, consider pairing with cash or low‑volatility European defense names to smooth swings. Scenario analysis helps: model upside from faster deliveries and downside from slippage or export delays, then set stop levels aligned with your risk budget.
Risks and what to watch next
Despite profit, cash flow needs monitoring. TTM operating cash flow per share is negative, and free cash flow is also negative, while inventory turnover of 0.43 hints at build ahead of deliveries. Converting the backlog to cash on schedule is key. Watch receivables days and milestone payments. Any bottlenecks in components or export approvals could widen the cash conversion cycle.
Governance improvements and capacity build are positives, but proof will be delivery cadence, gross margin stability, and new European wins. Independent grades are mixed: a recent C+ Sell rating contrasts with a Meyka Stock Grade of B with a Hold tilt. For DroneShield stock, milestones include contract signings, production ramp metrics, and clarity on 2026 guidance and cash burn trajectory.
Final Thoughts
DroneShield stock surged on clear catalysts, including audited FY2025 results, first-time profitability, and a sizeable A$2.3 billion backlog. The growth story is real, yet today’s multiples are demanding. For investors in Germany, two factors stand out. First, currency can add or subtract meaningfully from returns. Second, cash conversion must follow contract announcements. Our practical approach is to track delivery milestones, margin trends, and any European defense orders, then decide entries in stages. Consider partial positions with defined risk limits, and reassess if MACD and price action improve above resistance. Premium stories can work, but discipline matters most here.
FAQs
Why did DroneShield stock jump today?
Audited FY2025 results showed revenue up 276% to A$216.5 million, the first net profit, and a A$2.3 billion order book. The update boosted confidence in multi‑year demand for counter‑drone systems, lifting the shares about 12% as investors priced in stronger deliveries and improved governance.
Is DroneShield stock expensive after the earnings pop?
It trades at premium levels, with a PE near 301, price to sales about 25.9, and price to book near 10.2. Those multiples can hold if revenue and cash conversion accelerate, but any delivery delays or margin pressure could trigger a pullback from elevated valuation.
How should Germany-based investors think about currency risk?
The stock is listed in Australia, so trades settle in AUD. Your EUR return depends on both the share move and AUD/EUR changes. Consider hedging if position size is large, and track fees for multi‑currency trades. Currency can help or hurt results even when the stock price rises.
What near-term signals should I watch on the chart?
RSI around 42 and a slightly negative MACD signal a mixed setup, while ADX near 26 shows an established trend. Price near the Bollinger middle band suggests a decision point. Sustained closes above the upper band or an improving MACD histogram would strengthen the bullish case.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.