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October 22, 2025 12 mins

Australia’s defense tech sector has a new star. DroneShield has seen its stock soar more than 500% this year, catapulting the Sydney-based company from a niche player to an ASX 200 member. Once built to fend off paparazzi drones, it’s now supplying counter-drone technology to militaries and governments around the world.

In this episode, Rebecca Jones talks to Sydney Bureau Chief Ainslie Chandler and reporter Carmeli Argana about DroneShield’s journey from meme stock to military mainstay, whether the company’s explosive rally can last, and how its CEO’s remarkable backstory fits into this unique company’s rise.

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Episode Transcript

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Speaker 1 (00:00):
Hello, I'm Rebecca Jones. Come with me behind the headlines
into the biggest stories shaping Australia's place in global business.
This is the Bloomberg Australia Podcast Drone Shield seeing it
moving higher after had its results coming out.

Speaker 2 (00:15):
But you're taking a look there at that expansive rally.

Speaker 1 (00:18):
Year to date, you're talking about gains of more than
five hundred percent.

Speaker 3 (00:22):
One of the most exciting ASX stories in recent years
has been the evolution of drone Shield. We started to
develop what we believe was the largest library of its
kind of drone signals around the world.

Speaker 1 (00:36):
Australia's defense tech sector has just produced one of the
most extraordinary success stories on the ASEX. It's a company
called drone Shield. Once seen as a niche player, it's
now supplying counter drone technology to militaries and governments all
around the world. This week on the Bloomberg Australia Podcast,
we unpack how drone Shield went from memestock to military mainstay,

(01:00):
what its rise says about the future of Australia's defense
tech industry, and whether or not the company can sustain
this kind of momentum. To help me answer these questions,
I'm delighted to be joined by Bloomberg Sydney Bureau chief
Ainsley Chandler. Ainsley, thank you for joining.

Speaker 2 (01:16):
Me, Thanks for having me now.

Speaker 1 (01:18):
Ainsley, you interviewed Drones Shield CEO Oleg Vaughnick recently. How
would you rate your knowledge of drones going into that interview?

Speaker 2 (01:27):
My knowledge was pretty basic going in, and I have
to say coming out probably still fairly basic. But I
definitely have a better grasp on the business case for
counter drone technology.

Speaker 1 (01:38):
Now, it's not really something that we use in our
everyday life, right, I mean, I think to me it
makes more sense it's a military tool. I do have
some experience with competitive local real estate agents in my
area flying over to take photos of neighboring properties that
are for sale, but you know what, it helps them
get a better price whatever it takes.

Speaker 2 (01:58):
Right, Yeah, I'm sure Drone Shield's allowed to take those
ones down. I think the ones that they're dealing with
are doing some more nefarious things than that.

Speaker 1 (02:06):
And see, I think this does tell us something though
that we should start with the very very basics about
this company. What exactly is Drone Shield and what does
it do?

Speaker 2 (02:17):
So Drone Shield's a company that specializes in hardware and
software relating to counter drone technology. So essentially, they're the
tools that they use to take down drones and they've
found a really big niche in military in frontline kind
of battle situations in the last few years, especially since
the Ukraine Russia conflict.

Speaker 1 (02:39):
So it's something about ten years old this company, right,
Who are the founders? What do we know about them?

Speaker 2 (02:45):
Yeah, the founders were Brian Herring and John Franklin. They're
two US based researchers and they founded the company thinking
that they would be stopping paparazzi from flying drones over
people swimming pools and oh like that. It's gone in
a direction they probably couldn't have seen when they founded

(03:05):
the company. To be honest, they're two quite interesting guys
in themselves. You know, their first idea for a big
company was to use lasers to take down mosquitos in
your bedroom. So they've pivoted a little bit and you
would say, found a bit more success with Greenshield.

Speaker 1 (03:24):
So they're not still pursuing that one. Because I tell you,
if they need an angel investor, I will give out
my email address on air. I hate that sound, but
you know, lasers in the bedroom is probably not a
good fit, right.

Speaker 2 (03:36):
Well, I think you know, drones on the front line
taking them down is probably a little bit more important
at the moment than taking down some mosquitos in your bedroom.
Though you may disagree from.

Speaker 1 (03:46):
It, well, yes, but from a geopolitical stant I tend
to agree with you. Ainslee. Now, the CEO Oleg Vaughnick,
has been raising his profile quite broadly recently, right, And
he's got an interesting backstory too.

Speaker 2 (04:01):
Yes, he's been doing the rounds and trying to really
shore up support for Drone Shield. He himself was born
in Russia and migrated to New Zealand with his mother.
He was somewhat of a math's whiz and ended up
in investment banking, which he described as being a glorified secretary.
He really didn't like the kind of day to day
of being an investment banker, and he ended up getting

(04:23):
recruited to be Drone Shield's CFO. And now he is
the CEO, And as.

Speaker 1 (04:29):
He says, you know, he's leading a company that's had,
you know, such expansive growth gains of more than five
hundred percent this year. We had ol vonneg On Bloomberg
TV this week after Drone Shield's earnings on Monday. This
is what he had to say.

Speaker 3 (04:43):
We're continuing to rapidly accelerate with our customer adoption. When
we started ten years ago, there was really no demand
for counter john to speak of. Now militaries as well
as increasing the civilian customers are saying drone's and nefarious
activity are for real. But unfortunately we have really not
much encounter dron technology deployed so for the last couple

(05:06):
of years since it's really came on radar of a
lot of our customers. Since the start of the Ukraine War,
customers started to evaluate the counter dron technologies and now
I'm moving into rapid adoption cycle. But we are still
the very early days, but we're seeing those increased large purchases,
which is showing through our quarterly results, which are continued

(05:26):
to get stronger requorder.

Speaker 1 (05:28):
Varnick referenced the Ukraine War here, and obviously conflict is
one of the key reasons for the increase in growth.
I asked Bloomberg Stocks reporter Carmellie Argana, one of Ainsley's
team in the Sydney bureau, about what else has helped
its development. Comellie told me that defense contracts that drone
Shield has secured this year too. Last month with the

(05:49):
US worth almost eight million Ossie dollars, and a couple
of months before that there was a set of European
contracts worth more than sixty million. They had boyd confidence
in the company. Here's what else has helped.

Speaker 4 (06:02):
Another thing to know is that drone Shield just joined
Australia's main stock index, the ASX two hundred, in September.
That's a milestone that's brought major ETF providers like black
Rock and State Street onto the register, joining heavyweights like
Vanguard and Fidelity. That helps give the company a new
level of credibility.

Speaker 1 (06:22):
Carmellie also told me that not everyone is convinced, especially
when looking at the company's fundamentals. Here she is again
to explain.

Speaker 4 (06:32):
Analysts are expecting more room for the stock to grow. Bellpotter,
for example, one of two firms covering drone Shield that
Bloomberg tracks, raise its price target to five dollars thirty
after the company's latest quarterly results. Still that big gap
between drone Shield the highest valuations among the ASEX two
hundreds members, and the ASEX two hundreds valuation, Well, that's

(06:55):
running at around twenty five. Concerns remain on the stock
being expensive or might not be able to live up
to such high expectations great expectations.

Speaker 1 (07:06):
Indeed, Ainsley, it's not the first time the shares have rocketed.
What is different this time?

Speaker 2 (07:12):
Yeah, Drake Shield found itself at the mercy of day
traders in twenty twenty four. The share price went up
really rapidly, and it was a meme stock, and Oleg
Vaughneck told us at the time he wasn't so much
upset with the price it reached. It was more just
the speed at which it was reaching it and you
know what was driving at So that calmed down a

(07:34):
bit towards the back end of twenty twenty four. They
obviously had huge share price growth this year. But he's
sort of saying he's much more comfortable with this. You know,
they've reached the ASX two hundred, they've got a lot
more institutional backing, so it's a lot more stable in
terms of the share price and whether it's going to
go up or down rapidly.

Speaker 1 (07:55):
When we come back. Well, look at what happens to
defense tech companies in times of peace and why the
CEO of Drone Shield sold his shares right before they
took off. Stay with us. This is the Bloomberg Australia Podcast.

(08:17):
Welcome back to the Bloomberg Australia Podcast. Here with me
Rebecca Jones and Sydney Bureer Chief Ainsley Chandler, we're discussing
the success story that is a sex listed company, Jerne Shield.
Let us now hear a little bit more from CEO
Oleg Vaornick talking to us this week on Bloomberg Television.

Speaker 3 (08:34):
Europe is by far the largest share of our sales,
so today it's accounting for about forty percent of our revenues.
But we are present in about fifty countries around the world,
so US continues to contribute. We have presence in Virginia
and we serve number of defense, homeland security, law enforcement

(08:55):
and intelligence customers there. We're seeing quite strong demand from
South America where we're supporting government customers fighting drug cartels.
And we're seeing quite a lot of demand in Asia Pacific,
where a number of our customers are concerned about the
rise of drones. Chinese drones essentially all of China neighbors.
So all of that is combining together into very significant

(09:17):
wave of interest A SII.

Speaker 1 (09:19):
Those are some interesting growth markets he's just mentioned, and
you know, it seems they are expecting some strong growth
in civilian uses for their product. Can you talk us through.

Speaker 2 (09:29):
That, Yes, So he told us that of the about
sixty billion dollar addressable market for their products, about half
of that are civilian applications. So wild demand for their
technology has really been driven by the use of drones
on the front line in wars. There's also a lot
of kind of civilian facilities that want this kind of

(09:52):
protection as airports, you know, a big event spaces you know,
there was was sort of some technology to stop the
drug gangs there from dropping grenades with drones. So there's
a lot of different people around the world who are
finding themselves at the mercy of drones and are looking
for support in her sort of how to take them down.

Speaker 1 (10:14):
And I mean, this company, as we've said, has had
a massive surge in growth on the back of essentially war.
How ready are they for that pivot if there is,
you know, a sudden outbreak of peace. What did Vornick
tell you about their preparedness in that respect.

Speaker 2 (10:32):
Well, he's really confident the drones aren't going anywhere in
terms of frontline combat. You know, he was talking about
the front lines in Ukraine where basically there's no people
patrolling these front lines, there's just drones. So any kind
of vehicle that you're going to put into that space
needs to have counter drone technology. All these civilian applications

(10:53):
that you know they've discussed, they're all going to need
counter drone technology going forward. And he also mentioned and
you know, governments do like to stockpile this kind of
thing in times of peace so it can act as
a deterrent for war. So you know, they would much
prefer to invest in this now to deter war then actually,
you know, use it when they're actually in war. So

(11:15):
they're confident going forward that there's going to be demand
for their product.

Speaker 1 (11:19):
And finally, look, a lot has been made of the
fact that the CEO sold down his shares in the
company right before they really took off. What did he
say about that.

Speaker 2 (11:28):
He told us he tries not to have regrets about it,
which is of course what you would say. But his
is a very Sydney story. You know, this company is
based in Sydney. They operate just on the art skirts
of Sydney, and he took his money and he bought
a house in Sydney. So I think anyone that lives
here knows that that takes a big chunk of change.

(11:50):
He also told us that even though he sold those shares,
he still needed a mortgage, So it's a very very
Sydney story.

Speaker 1 (11:57):
I was going to say, it sounds like he probably
just managed to extract enough to get a deposit and
a nice little too better in the Eastern suburbs or
something like that. Ainsley Chandler, thank you for joining me.

Speaker 2 (12:07):
Thank you.

Speaker 1 (12:08):
If you found today's conversation insightful, be sure to follow
the Bloomberg Australia Podcast wherever you listen, and check for
more reading on Australia's defense tech industry, including the latest
reporting from Ainsley Chandler and Carmeliagana on Bloomberg dot com.
This episode was recorded on the traditional lands of the
Wilwundery and Gadigild people. It was produced by Marafil Hussein

(12:29):
and edited by Chris Burke. I'm Rebecca Jones and I'll
see you next week.
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