Draganfly Inc secures Army contract to develop AI-powered counter-drone system with F4 Defense

Draganfly Inc Secures Major Defense Contract for Counter-Drone System Development

Draganfly Inc has been selected by DEVCOM Army Research Laboratory for a development contract to create a counter-unmanned aircraft system platform, marking a significant expansion of the company's defense capabilities 1

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. The contract, awarded jointly to Draganfly Inc and F4 Defense International, focuses on developing a modular system designed to detect, identify, track, target, and defeat hostile drones in operational environments 1

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. This announcement comes as the company trades at $5.27 with a market capitalization of $186.76 million, having experienced a stock surge of nearly 188% over the past year 1

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Advanced Technology Integration for Modern Drone Warfare

The platform will integrate Draganfly's tethered aerial platform technology with identification, targeting, and defeat system architectures 1

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. The counter-drone system is designed to include persistent tethered airborne surveillance and targeting, AI-enabled drone identification and tracking, real-time situational awareness, integrated electronic and kinetic defeat coordination capabilities, and rapid deployment architecture for expeditionary and fixed-site operations 1

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. Cameron Chell, CEO of Draganfly, emphasized the urgency of this technology, stating that "low-cost drones have become one of the most disruptive asymmetric threats facing military forces, governments, and critical infrastructure operators globally" 1

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Strong Revenue Growth Momentum Supports Defense Expansion

The contract comes as Draganfly demonstrates strong revenue momentum, with revenue growth of 25% in the last twelve months 1

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. The company reported a 49.8% year-over-year increase in revenue for the first quarter of 2026, reaching CAD 2.3 million, aligning with strategic expansions and increased military partnerships 1

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. According to Investing.com analysis, analysts anticipate continued sales growth in the current year, with price targets ranging from $8.98 to $19.85, reflecting optimism about the company's positioning in the expanding Counter-UAS market 1

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Market Positioning in Rapidly Growing Counter-UAS Sector

Industry research projects the global Counter-UAS market to grow to more than $20 billion by 2030, presenting substantial opportunities for companies developing drone solutions 1

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. Dave Fairfax, COO of F4 Defense International, stated the collaboration is focused on delivering a scalable solution designed around modern drone warfare realities by combining persistent aerial sensing, intelligent targeting, and coordinated defeat capabilities 1

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. F4 Defense International is an SBA HUBZone certified small business specializing in research, design, and development of advanced technology solutions for the Department of Defense 1

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Broader Portfolio Strengthens Defense Technology Capabilities

Draganfly develops drone solutions and systems for public safety, civil, military, agriculture, industrial inspections, security, mapping, and surveying markets 1

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. The Canada-based company provides AI-driven software and robotics solutions across multiple sectors 2

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. The initial contract phase is expected to focus on systems integration, operational capability development, and field evaluation activities 1

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. The company recently announced a definitive asset purchase agreement to acquire Skip Dynamix Corporation's drone technology business for up to $7.5 million, further expanding its capabilities into adjacent defense markets 1

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. This contract win positions Draganfly to address the growing need for sophisticated counter-drone technologies as hostile drone threats continue to evolve globally, with applications extending beyond military use to critical infrastructure protection and landmine detection surveys 2

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