Dronemaker DraganFly’s Shares Soar 13.6% After Contract With U.S. Army: Is There More Lift to Come?

With rising military demand and growing commercial opportunities, Draganfly could deliver solid growth in the coming quarters.

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Key Points

  • Draganfly shares jumped 13.6% after the U.S. Army selected its Flex FPV drone system, signaling its rising role in defense.
  • The company will deliver drones, set up local manufacturing, train personnel, and build logistics networks to support Army operations.
  • Expanding its U.S. footprint and leveraging AI-driven innovations, Draganfly is positioned for growth across both defense and commercial markets.

Shares of drone manufacturer Draganfly (NASDAQ:DPRO) soared 13.6% following its announcement that the U.S. Army has selected it to supply the Flex FPV drone system. The development highlights Draganfly’s growing role in the fast-evolving drone defence ecosystem.

Under the agreement, Draganfly will deliver drones, establish localized manufacturing within overseas Army facilities, train personnel, and build a logistics framework designed to secure supply chains. These steps suggest the company is positioning itself as a long-term partner in strengthening the U.S. Army’s drone capabilities.

The timing is significant. Recent U.S. Army exercises have shown the growing tactical value of FPV drones, including their use in direct attacks on autonomous targets and even air-to-air combat scenarios. By embedding manufacturing closer to the battlefield, Draganfly is aligning its operations with these emerging defence priorities, placing itself at the core of the military’s tactical evolution.

Draganfly is laying the groundwork for sustained growth

Draganfly is expanding its U.S. manufacturing footprint, a move that will support future growth. Notably, the Department of Defense has been pushing to accelerate domestic drone production and reduce product acquisition bottlenecks. This move provides a solid base for future growth for suppliers like Draganfly. Moreover, strengthening its U.S. footprint enables the company to expand its capacity and provides a competitive edge in securing future contracts.

Although the defence sector remains the key growth driver, Draganfly’s opportunities extend beyond military contracts. Advances in artificial intelligence, machine learning, and high-resolution sensors are expanding the applications of drones across agriculture, infrastructure, and logistics. Many of these innovations have been accelerated by consumer technology, making commercial adoption increasingly viable.

What’s next for Draganfly stock?

Draganfly stock has jumped more than 262% over the past year. Despite this rally, the rising military demand, increasing manufacturing capacity in the U.S., and growing commercial opportunities suggest that Draganfly appears well-positioned for continued growth. This implies it has more room to run.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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