The Droneshield Ltd (ASX: DRO) share price is rocketing higher today.
Shares in the drone defence tech company closed Monday trading for 26.5 cents. In early morning trade on Monday, shares are changing hands for 35 cents apiece, up 32%.
The Droneshield share price is soaring after the company reported inking a record new contract with the United States government.
What’s happening with the new contract?
The Droneshield share price is surging after the company announced it has received a $33 million order from an unnamed US government agency.
The record-high award will see Droneshield supply equipment alongside multi-year services.
The ASX drone defence company said it expects to receive the payment in full before the end of the calendar year. Management noted that should lead to another record year “by a wide margin”.
2022 was also a record year for the company. But Droneshield has been outpacing last year’s performance, with some major new contracts. That includes the $9.9 million order from a Five Eyes customer earlier in July, reported here.
“We’re honoured to receive this award and support this customer,” Droneshield’s US CEO Matt McCrann said. “This award is a result of their trust in Droneshield and our solutions, and reflects our commitment to their mission.”
McCrann added:
We’re proud of our team’s efforts, the increasing value we’ve delivered to our customers worldwide, and are excited about continuing to support and grow the business as we look towards 2024 and beyond.
Also potentially helping boost the Droneshield share price today is the company’s sizeable current order backlog, comprising of committed orders in the process of fulfilment. This backlog now stands at a record $62 million.
And the company noted that it has a current pipeline of over $200 million across more than 80 opportunities.
Droneshield share price snapshot
With today’s big boost factored in, the Droneshield share price is now up an impressive 39% in 2023.
Over the past 12 months, the ASX drone defence company’s shares have gained 68%.
