DroneShield (ASX:DRO) secured two contracts totaling AU$23.2 million from a reseller for the supply of vehicle-mountable counter-drone products, according to a Tuesday filing with the Australian bourse.

The reseller, Cobbs Belux, is required to distribute the products to a European military end-customer, per the filing.

About AU$21 million of the aggregate contract value will form part of full-year 2026 committed revenue, while the remainder will count as future period subscription revenue.

DroneShield said it expects first-half revenue of AU$125.8 million, an increase of 74% from the prior correspond period. The company's first-half gross margin is estimated at 60%, down from 65% a year earlier due partly to the sales mix between DroneShield's offerings and third-party product hardware.

The company now expects its full-year 2026 revenue to be in the range of AU$250 million to AU$270 million, up 15% to 25% from 2025.

Additionally, the company launched RfAI-3, the third generation of its proprietary radio frequency intelligence engine for counter-drone detection. While conventional radio frequency detection relies on a classified emitter model, RfAI-3 applies wideband detection to identify emissions across the spectrum and compare them with previously observed drone signatures, the company said.

Its shares fell nearly 8% in recent Tuesday trade.