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In a European defence drone contract with drone manufacturer, Elsight secures A$ 7.1 million (US$ 4.28 million) in additional orders for Elsight’s carrier-agnostic drone connectivity systems over the next four months.
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This deal is in addition to an initial production order of A$ 498,000 (US$ 300,000) announced in March this year
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The order, to be fulfilled over four months, more than doubles Elsight’s entire calendar 2024 revenue.
ASX-listed Elsight Limited (ASX: ELS) has secured a A$7.1 million (US$4.28 million) order to be delivered over the next four months for its carrier-agnostic drone connectivity systems from a European original equipment manufacturer for deployment in a government drone program.
The A$7.1 million order over four months is more than double Elsight’s entire revenue for calendar 2024 of A$3.36 million (US$2.02 million) and company management will be upgrading revenue forecasts for the current year accordingly.
The order is a significant follow-on agreement with Elsight’s original equipment manufacturing partner in Europe in additional to the A$498,000 (US$300,000) order announced on 20 March 2025 for deployment in a European drone program.
The A$7.1 million contract includes a material down payment upon signing and a pre-agreed delivery schedule, ensuring product flow aligns with the customer’s deployment timelines.
The fulfillment of the order is well within Elsight’s current production and funding capacity, reflecting the company’s operational readiness and financial discipline.
During this initial four-month phase, the customer will also define the long-term quantities and rollout plans expected to follow, providing a strong foundation for the continued expansion of the relationship.
Elsight Chief Executive Officer Yoav Amitai said the order was a major validation of the value, reliability and strategic position of the company’s Halo connectivity solution for unmanned aerial and ground vehicles.
“After a long and extensive period of field testing with deployment success, the customer’s fast move to production at a multi-million-dollar scale-up within just a few months, highlights the critical role that reliable communications play in today’s defence operations,’’ Mr Amitai said.
“We look forward to continuing to support this important program and to deepen our engagement over the coming year.’’
Strengthening Elsight’s defence footprint
This expanded commitment reinforces Elsight’s strategic focus on the defence sector, which accounted for 51% of total company revenue in 2024.
With increasing geopolitical tensions and rising defence budgets across Europe, including strong growth in investments for unmanned systems and communications technologies, Elsight’s solutions are ideally positioned to serve this demand and grow organically with the industry.
The Chief of General Staff (CGS) for the UK Army last week told the Military Robotics & Autonomous Systems show in the UK that a major part of the Army budget in the coming years will be spent on autonomous solutions. Elsight’s Halo is well-positioned to play a role that enables autonomous military solutions.
Swedish Defence Minister Pal Jonson told Business Insider on 2 April 2025 that his country identified the capability of swarm drones while watching Russia’s invasion of Ukraine, where drones have been used more than in any other conflict in history. He said that one solider could autonomously control up to 100 drones.
The company will continue to provide updates as the relationship with the European customer evolves and new phases of procurement are announced.
This relationship with the European customer is separate to the program referenced in the company’s announcement of 25 September 2024
ASX Disclosure under Listing Rule 3.1
Elsight confirms that the entity does not consider the identity of the customer to be information that a reasonable person would expect to have a material effect on the price or value of the entity’s securities and further confirms that this announcement contains all material information relevant to assessing the impact of the contract on the price or value of the entity’s securities, and is not misleading by omission.
About Elsight
Elsight (ASX:ELS) Elsight delivers Connection Confidence with proprietary bonding connectivity that incorporates both software and hardware elements to deliver reliable, secure, high bandwidth communications - even in the most challenging areas for stationary, portable, or actively mobile situational requirements. Elsight provides robust, secured connectivity to unmanned aerial and ground systems manufacturers, operators, and integrators globally. www.elsight.com