Bloomberg found a defense stock in Asia with nearly 400% growth in 2025

Shares of DroneShield, a little-known Australian developer of anti-drone countermeasures, became the fastest growing among the securities of defense companies in Asia. A series of contracts with the governments of European countries and the USA contributed to the growth of quotations.

DroneShield shares jumped 388% in 2025, outperforming all regional peers in the Bloomberg Defense Companies Index. In early September, DroneShield shares were included in the benchmark Australian market index, the agency said. According to Bell Potter Securities analyst Daniel Laing, the volume of contracts received this year indicates that demand is growing, and DroneShield is able to meet it, the article said.

However, some investors are skeptical about the rapid growth of DroneShield shares. The company's key financials do not justify its current market value of A$3.2 billion ($2.1 billion), Bloomberg quotes Seneca Financial Solutions portfolio manager Ben Richards as saying. "An alarming signal" for Richards was also the fact that several members of DroneShield's board of directors were selling its shares during the rally.

DroneShield develops solutions for tracking and disabling combat drones. In June, the company's stock soared after it received the largest order in its history from European customers worth A$62 million ($40 million). It also recently received two contracts from the U.S. Department of Defense worth $5.2 million. In August, DroneShield reported that its revenue for the first half of the year more than tripled year-over-year. It attributed this growth to the expansion of its business outside its key U.S. market - in Europe and the Asia-Pacific region, Bloomberg writes.

Defense stocks are rising in 2025 amid military conflicts and geopolitical tensions that are prompting many countries to increase defense budgets. South Korea's Hanwha Aerospace, for example, has benefited from its expertise in producing weapons to counter Soviet-era systems, while quotes of Chinese defense firms have risen ahead of the largest military parade in Chinese history in Beijing.

The drone countermeasures market will grow manifold in the next few years, from $1.9 billion in 2024 to $5.5 billion in 2029, according to Research and Markets' market report for 2025. North America was the largest region in the drone countermeasures market in 2024, but Asia Pacific will be the fastest growing region in the coming years, Research and Markets predicts.

This article was AI-translated and verified by a human editor