It certainly seems like market momentum in the drone sector won’t stop soaring any time soon. And crucially, this momentum is occurring in both the drone and counter-drone spaces.
For instance, Australian counter-drone systems provider DroneShield recently announced its Q4 2025 earnings. The company reported revenue of $51.3 million, a sharp jump compared to last year’s numbers of $26.4 million.
DroneShield’s rising success shouldn’t come as a particular surprise to the investment community. As drones continue to become more of a part of everyday life, both for defense and commercial use, demand will continue to mount for companies and software designed to preserve public safety and mitigate the threat of military drones.
Counter-drone companies aren’t the only ones reporting positive news. Recently, AeroVironment announced that it has received a new $75 million contract from the U.S. Air Force, with a specific focus on biotechnology and AI-enabled materials. This development helps cement the company as a consistent partner in providing drone and autonomous systems to support military operations.
“The thread connecting these developments is clear: software, AI, and recurring revenue models are becoming central to what were once hardware-only drone businesses,” noted REXShares in a recent post. “Counter-drone systems, autonomous navigation, and integrated airspace management represent the next wave of growth—driven by rising geopolitical tensions, expanding commercial use cases, and regulatory progress on BVLOS operations.”
Taking on Drone Growth With DRNZ
The REX Drone ETF (DRNZ) holds noticeable exposure to both of these companies. As of February 5, 2025, AeroVironment and DroneShield are the second and third largest holding in the fund’s portfolio, respectively.
Beyond these two companies, DRNZ provides balanced and broad exposure to companies across the different aspects of the drone and UAV sectors. For those looking to capitalize on broad momentum in the drone industry, this fund could be worth a closer look.
For more news, information, and strategy, visit ETFDB.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for DRNZ, for which it receives an index licensing fee. However, DRNZ is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of DRNZ.
