DroneShield to Join Project FlyTrap as European CUAS Demand Increases

Australia’s DroneShield has announced its participation in Project FlyTrap, a counter-drone initiative led by the U.S. Army V Corps and involving U.S. and U.K. forces.

The initiative, held from June to August 2025 at the Hohenfels Training Area in Germany and the Bemowo Piskie Training Area in Poland, focuses on testing and developing lower-cost, portable counter-unmanned aerial system (C-UAS) technologies in realistic combat scenarios.

Project FlyTrap is intended to address the growing threat of drones on the battlefield, with insights from the drills feeding into future C-UAS tactics and systems. It aligns with broader NATO efforts to counter evolving unmanned threats.

DroneShield, which has worked exclusively on CUAS technologies for over a decade and deployed nearly 4,000 systems in more than 40 countries, joins the exercise as part of its continued collaboration with NATO-aligned defense forces.

DroneShield recently received a $61.6 million contract for handheld CUAS systems and accessories from its European reseller, to be supplied to a military customer in Europe. The company expects to deliver all equipment during Q3 2025, with payments due in Q3 and Q4. This is the largest order in DroneShield’s history and exceeds its 2024 total revenue of $57.5 million.

The company said the contract follows a $32.2 million repeat order in April and reflects growing volumes from defense customers.

Planned Expansion Under ReArm Europe Plan

DroneShield is also expanding its presence in Europe, aligning with the ReArm Europe Plan / Readiness 2030—an €800 billion ($1.4 trillion) regional initiative focused on increasing defense investment, industrial capacity, and support for Ukraine.

The company is establishing a European Centre of Excellence, its first in-house production and assembly site outside Australia. It will include facilities for manufacturing, research, drone testing, and training. The new site is expected to enable production with at least 65% European industry content for some orders and help qualify the company for additional procurement programs. Europe currently accounts for A$1.1 billion in active sales opportunities.

Additional Activity in Latin America

On June 30, DroneShield secured a $9.7 million order from a Latin American defense customer via a regional reseller. Equipment deliveries are scheduled across Q3 and Q4 2025. This follows earlier contracts from the same partner totaling $10.8 million in December 2024 and January 2025.

In 2024, 91% of DroneShield’s production was exported. The company continues to grow under Australia's Future Made in Australia initiative, which includes a forecasted increase in national defense spending to $100 billion by FY34.