Drone Stocks: Makers, Counter-Drone Firms and Risks

There is no single “drone stock”: the listed companies range from pure drone makers to large defense groups where drones are a small part of sales. Red Cat and Ondas earn most of their revenue from unmanned and counter-drone systems, AeroVironment earns most of its revenue in a broader autonomous systems segment, DroneShield sells only counter-drone products, and Kratos has a drone segment inside a broader defense business. Rheinmetall and Hensoldt do not report drone revenue at all. Before you buy, check three things in the filings: how much of the business is really drones, whether the company makes a GAAP profit, and how fast the share count is growing.

This guide compares a selection of seven listed companies with figures from their own filings, checked on November 11, 2026. It explains direct and indirect drone exposure, the counter-drone market, private companies you cannot buy and the funds that hold drone names. It is research from public documents: I have not tested any of these products and this is not investment advice. How we work is on our editorial policy page, and we use no affiliate links here.

Drone stocks in 30 seconds

• Direct exposure: Red Cat reports one drone segment; most of Ondas’s revenue comes from its autonomous systems segment; DroneShield is a pure counter-drone company.
• Mixed exposure: AeroVironment’s Autonomous Systems segment (drones, loitering munitions, counter-drone) made $1.36 billion of $1.98 billion revenue in the year to April 2026. Kratos’s drone segment made $292 million of $1.35 billion in 2025.
• Indirect exposure: Rheinmetall and Hensoldt sell counter-drone systems and radars but do not disclose drone revenue.
• Losses and dilution: Red Cat and Ondas lost money in 2025 and grew their share counts sharply; Ondas has about six times as many shares as at the end of 2024.
• For US investors: the four US names trade on Nasdaq. DroneShield, Rheinmetall and Hensoldt trade at home and in the US only through OTC lines or unsponsored ADRs.

What are drone stocks?

Drone stocks are shares of companies that build unmanned systems or the systems that detect and defeat them. An unmanned aircraft system (UAS) is the drone plus its ground control and data links. The term also covers loitering munitions, drones with a built-in warhead that circle over a target area before they strike. On top of that comes counter-UAS (C-UAS): radar, jammers, guns, lasers and interceptor drones that stop hostile drones.

The useful question is not “is this a drone stock?” but “how much of the revenue is drones?” We sort the companies into five groups by business exposure, using only what each company discloses. A pure drone maker gives you the most direct exposure and usually the biggest swings. A diversified defense contractor gives you a smaller slice of the theme inside a larger business.

Group	Companies in this guide	How the drone share shows in the filings
Drone makers	Red Cat (RCAT), Ondas (ONDS)	One segment (Red Cat) or an autonomous systems segment that also holds counter-drone and ground robots (Ondas)
Drone maker with mixed exposure	AeroVironment (AVAV)	Autonomous Systems segment, which also holds counter-drone, electronic warfare and ground and underwater systems
Counter-drone specialist	DroneShield (DRO, Australia)	Whole company is counter-drone
Drone segment inside a defense group	Kratos (KTOS)	Unmanned Systems segment, about 22% of 2025 revenue
Indirect: systems and sensors	Rheinmetall (RHM, Germany), Hensoldt (HAG, Germany)	No drone revenue disclosed; drone work sits inside larger segments

The seven companies at a glance

The table uses each company’s latest full year and its latest reported quarter or half, so the periods differ. All figures come from the companies’ own filings and releases as checked on November 11, 2026. Net results are GAAP or IFRS results after tax; adjusted figures are left out on purpose, because several of these companies show adjusted profits next to statutory losses.

Company (ticker, listing)	Latest full year: revenue	Latest full year: net result	Latest period	Disclosed exposure metric
AeroVironment (AVAV, Nasdaq)	$1,976.8m (FY to Apr 30, 2026)	loss $265.1m	Q1 FY2027 to Aug 1, 2026: revenue $480.5m	Autonomous Systems segment $1,358.1m (broader than drones)
Kratos (KTOS, Nasdaq)	$1,347m (2025)	profit $22.0m	Q3 2026: revenue $471.8m, loss $0.2m	Unmanned Systems segment $292.0m (2025)
Red Cat (RCAT, Nasdaq)	$40.7m (2025)	loss $72.1m	H1 2026: revenue $35.7m, loss $61.8m	One segment: drones and robotics, no split
Ondas (ONDS, Nasdaq)	$50.7m (2025)	loss $133.4m	Q2 2026: revenue $83.8m, loss $89.7m	Autonomous Systems $49.75m of $50.7m (2025, broader than drones)
DroneShield (DRO, ASX)	A$216.5m (2025)	profit A$3.5m	H1 2026: revenue A$125.8m, loss A$32.2m	Whole company is counter-drone, no split by product
Rheinmetall (RHM, Xetra)	€9,935m (2025)	profit €835m	9M 2026: sales €8,376m	No drone revenue disclosed
Hensoldt (HAG, Xetra)	€2,455m (2025)	profit €86m	9M 2026: revenue €1,863m	No drone revenue disclosed

Read the table as a map of business models, not as a ranking. Growth rates differ a lot because some companies grew by acquisitions. The currencies also differ: A$ is the Australian dollar and € the euro. Red Cat and Ondas had not yet filed their third-quarter 2026 reports on November 11, 2026.

AeroVironment (AVAV): drones and more, with a restatement

AeroVironment builds small military drones, Switchblade loitering munitions and, since the BlueHalo deal, space, laser and counter-drone systems. The BlueHalo acquisition closed on May 1, 2025 for $3.53 billion including debt, paid mostly in about 17.4 million new shares. Since then AeroVironment reports two segments: Autonomous Systems (drones, Switchblade, counter-drone, electronic warfare, ground robots) and Space, Cyber and Directed Energy.

Revenue more than doubled, but the year ended with a GAAP loss. In the fiscal year to April 30, 2026, revenue rose 141% to $1,976.8 million, and the net loss was $265.1 million after a goodwill impairment of $240.7 million in the space business. In June 2026 the company restated its third-quarter report because the impairment had been understated by $87.3 million, and it reported a material weakness in internal controls; a securities class action was filed in May 2026.

The newest quarter shows slower growth and a larger order book. In the quarter to August 1, 2026, revenue was $480.5 million, up 6%, and Switchblade revenue fell by $56.9 million because of order delays. Funded backlog was $1.5 billion, up 37% on the year (it was $1.2 billion on April 30, 2026). The company guides to $2.125 to $2.225 billion of revenue for the year to April 2027. Shares outstanding rose from 28.3 million in April 2025 to 50.8 million in September 2026, mainly through the deal and a 2025 share sale.

Kratos (KTOS): a drone segment inside a defense group

Kratos is not a pure drone company, but its Unmanned Systems segment builds target drones and the XQ-58 Valkyrie. The Valkyrie is a jet-powered drone designed to fly alongside crewed fighter jets, a type the US services call a Collaborative Combat Aircraft (CCA). Northrop Grumman, as prime contractor with Kratos’s Valkyrie, was selected in January 2026 for the US Marine Corps’ CCA effort, according to Northrop’s release and Kratos’s 10-K. Kratos says it plans to build up to about 40 Valkyries a year by the end of 2027.

The drone segment is about a fifth of revenue. In 2025, Kratos revenue rose 18.5% to $1.347 billion, and the Unmanned Systems segment contributed $292.0 million. Net income was $22.0 million, and in the third quarter of 2026 the company reported a small net loss of $0.2 million on revenue of $471.8 million. Backlog stood at $2.65 billion on September 27, 2026, of which $357 million was in Unmanned Systems.

Kratos raised a large amount of new equity in 2026. In February 2026 it sold 16.4 million shares at $84 for about $1.38 billion gross, and cash was $1.40 billion at the end of September. The share count rose about 10.5% between February and October 2026. For 2027 the company gives a first revenue forecast of $2.1 to $2.2 billion. A small profit next to a large equity base means the share price depends on growth that has not shown up in earnings yet.

Red Cat (RCAT): small drones for the US Army

Red Cat makes small reconnaissance drones and reports a single drone and robotics segment. Its subsidiary Teal was selected in November 2024 for the US Army’s Short Range Reconnaissance (SRR) program, and its Black Widow drone is the product for that program, according to Red Cat’s 10-K. The 10-K confirms Blue UAS certification for its older Teal 2 drone; Blue UAS is the Pentagon’s vetted list of drones cleared for US government use.

Revenue is growing fast, and losses are larger than revenue. In 2025 revenue rose 161% to $40.7 million, while the net loss was $72.1 million. In the first half of 2026 revenue was $35.7 million and the net loss $61.8 million. The company targets $150 to $180 million of revenue for 2026 and does not disclose a backlog.

Growth has been paid for with new shares. Red Cat sold stock four times between April 2025 and May 2026, and the share count rose from 85.2 million at the end of 2024 to 152.7 million in August 2026, an increase of about 79%. Cash was $325.6 million on June 30, 2026. In October 2026 Red Cat launched a cash tender offer for the Austrian engine maker Steyr Motors, which still needs foreign-investment approvals.

Ondas (ONDS): a roll-up of drone and counter-drone companies

Ondas, now named Ondas Inc., has bought more than a dozen companies since 2025 and is changing size very quickly. Its Autonomous Systems segment holds drones, the Iron Drone counter-drone interceptor, the Sentrycs counter-drone system and ground robots. Deals include Sentrycs (closed November 2025, $224.6 million), Roboteam (December 2025), Mistral (April 2026) and DZYNE (July 2026).

Revenue jumped through acquisitions, and GAAP results swing with warrant accounting. 2025 revenue was $50.7 million with a net loss of $133.4 million. In the second quarter of 2026 revenue reached $83.8 million and the net loss was $89.7 million, while the first quarter had shown a GAAP profit of $361.2 million from non-cash warrant revaluations. The company targets $525 to $550 million of revenue for 2026 and reported a backlog of about $613 million on June 30, 2026.

Ondas is the clearest dilution case in this guide. The share count rose from 93.2 million at the end of 2024 to 570.6 million in August 2026, about six times as many. The January 2026 offering alone raised about $1 billion and included warrants for another 121.6 million shares. On June 30, 2026, Ondas held about $1.39 billion in cash, restricted cash and short-term investments.

DroneShield (DRO): a pure counter-drone company from Australia

DroneShield sells counter-drone jammers, detection systems and software, and nothing else. Its products range from handheld jammers to fixed detection systems, and recurring software revenue reached A$11.5 million in the first half of 2026. In April 2024 it announced the first counter-small-UAS framework agreement of NATO’s procurement agency NSPA, awarded through its Belgian partner; the agreement runs three years with extension options. It produced its first European-made hardware in June 2026.

Growth was strong, but the first half of 2026 brought a loss. Revenue rose 276% to A$216.5 million in 2025 with a small statutory profit of A$3.5 million. In the first half of 2026 revenue rose 74% to A$125.8 million, but the company reported a statutory loss of A$32.2 million, including A$15 million of items it calls individually significant. It expects A$250 to A$270 million of revenue for 2026 and had A$180 million of cash and no debt on June 30, 2026.

There is an open investigation by Australia’s securities regulator. In its results release of August 26, 2026 (page 2), DroneShield says it “continues to assist ASIC in relation to an investigation into ASX announcements and trading activity during November 2025” and that it is “not clear what action, if any, may result.” As of November 11, 2026 we found no ASIC charge, finding or media release; an investigation is not a finding of wrongdoing. The company has since renewed its board and management, with a new CEO and chairman.

Rheinmetall (RHM): counter-drone systems inside Germany’s largest defense group

Rheinmetall gives you drone exposure only as part of a much larger arms business. Drone defense sits in its Air Defence segment (Skyranger and Skynex gun systems), which had sales of €731 million in the first nine months of 2026. Unmanned aircraft sit in Digital Systems, including a framework with the German armed forces for FV-014 loitering munitions “in the low single-digit billion euros range”. Rheinmetall does not report a separate drone revenue figure.

The group is profitable, but its 2026 forecast was cut twice. In 2025 sales rose 29% to €9.94 billion, earnings after tax were €835 million and the dividend was €11.50 per share. The original 2026 forecast of €14.0 to €14.5 billion was cut in August and again on November 5, 2026, to about €13.2 billion. What Rheinmetall calls Rheinmetall Backlog, which includes signed framework agreements, was €78.0 billion on September 30, 2026, down from €80.5 billion at the end of June; that total is not all firm purchase orders. Rheinmetall’s share price and its European peers are covered in the defense stocks comparison linked in the ETF section below.

Hensoldt (HAG): the radar behind drone defense

Hensoldt does not build drones; it builds the sensors that find them. Its Spexer radars are designed to detect small, slow targets such as drones, and the German armed forces have commissioned Hensoldt to expand the ASUL drone defense system. In January 2026 Hensoldt signed a memorandum of understanding with the start-up TYTAN Technologies to integrate interceptor drones into its command software; it is not a contract and has no stated value.

Orders are growing faster than sales, which takes time to turn into revenue. Order intake rose 62% to €4.71 billion in 2025, while revenue rose by close to 10% to €2.46 billion and group profit was €86 million. In November 2026 Hensoldt raised its 2026 forecast to revenue of about €2.8 billion and confirmed its ambition of €6 billion of revenue by 2030. Like Rheinmetall, it does not disclose drone or counter-drone revenue.

Counter-drone stocks: who earns at which layer

Counter-drone defense works in layers, and each layer has different listed suppliers. First a radar or radio scanner must detect the drone, then the system must identify it, and only then can a jammer, gun, laser or interceptor defeat it. A cheap drone can force the defender to spend far more, which is why governments now buy dedicated counter-drone systems instead of using expensive missiles.

1. SensorsDetectRadar and radio detection, for example Hensoldt Spexer and DroneShield's detection systems
2. Command softwareIdentify and decideSystems such as Hensoldt's ASUL tie sensors and effectors together
3. EffectorsDefeatJammers (DroneShield), guns (Rheinmetall Skyranger), interceptors (Ondas Iron Drone, AeroVironment)

Our simplified model. Examples come from the companies' own descriptions; none of them discloses revenue by layer.

Three companies in this guide sell counter-drone products as a core line. DroneShield is the only pure counter-drone company. Ondas owns Sentrycs and Iron Drone, and AeroVironment’s Autonomous Systems segment includes counter-drone systems. Rheinmetall and Hensoldt sell important parts of the chain but only as a slice of a larger business.

Why drones are in demand: budgets and programs

The war in Ukraine has shown that cheap drones change the battlefield, and NATO governments are now budgeting for that. At the Hague summit in June 2025, NATO members agreed to spend 5% of GDP on defense and security by 2035, including at least 3.5% on core defense and up to 1.5% on infrastructure and resilience, with a review in 2029. That is a spending target, not money assigned to any company.

NATO’s Drone Edge initiative adds a drone-specific layer. It was launched on July 7, 2026 at the Defence Industry Forum of the Ankara summit. The official text says Allies are “investing over USD 40 Billion in counter-drone capabilities over the next five years”, which is a sum of national plans, not a NATO budget. Allies also committed to train five times as many drone operators by the end of 2027, and a NATO counter-drone marketplace went live on November 5, 2026, where Allies can buy listed systems without a new tender.

The EU is building a drone defense initiative on its own timeline. Under its Defence Readiness Roadmap 2030, the European Commission wants a European Drone Defence Initiative with initial capability by the end of 2026 and full capability by the end of 2027. In Germany, the federal government says Russia was behind an attempted drone attack at Leipzig airport in August 2026, in which a drone carrying explosives was found, as Saxony’s Justice Ministry also reported. Events like this push counter-drone spending up the list of priorities.

For investors, the key point is that budgets and targets are not orders. Money reaches a company’s results only through firm orders, which can come years after a summit headline. Revenue is recognized as contractual performance obligations are satisfied, sometimes during production and sometimes when control transfers; orders, funding, revenue and cash receipts are different measures. Market research firms such as Drone Industry Insights estimate the commercial drone market at $40.6 billion in 2025, rising to $57.8 billion in 2030; such figures are estimates and differ widely between firms.

Private drone companies you cannot buy

Several of the best-known drone companies are private, so there is no stock to buy. Anduril of the US raised $5 billion in May 2026 at a $61 billion valuation. Helsing of Germany raised $1.8 billion in July 2026 at about $18 billion, and Quantum Systems signed a $1.2 billion financing round the same month at about $8 billion, according to its company release. We found no IPO filing or IPO announcement from any of the three.

DJI, the largest civilian drone maker, is private and under heavy US restrictions. In December 2025 the FCC put foreign-made drones and UAS critical components on its Covered List, which blocks new equipment approvals for them, with exemptions added in January 2026. In June 2026 the Pentagon listed DJI again as a Chinese military company under Section 1260H. Our SpaceX stock guide explains how to follow a famous company before it lists.

Drone ETFs: what you can buy in the US

US investors have two small drone-focused ETFs, and the larger defense funds hold drone stocks only as small positions. The table shows the issuers’ own figures. The European HANetf Defiance Drone UCITS ETF (ticker DRON in Europe) is not available to US persons under its issuer’s terms, so it is not in the table. No US-listed ETF uses the ticker DRON.

ETF (ticker)	Focus	Expense ratio	Assets (date)	AVAV / KTOS / RCAT / ONDS weight (date)
REX Drone ETF (DRNZ, Nasdaq)	Drones and counter-drone	0.65%	$89.9m (Nov 9, 2026)	15.08% / not in top 10 / 4.28% / 14.09% (Nov 9)
Defiance Drone & Modern Warfare ETF (JEDI, NYSE)	Drones, space, eVTOL, AI, plus a private Shield AI position	0.99% total annual operating expenses	$133.4m (Nov 9, 2026)	2.77% / 1.78% / 3.30% / 8.35% (Nov 11)
SPDR S&P Aerospace & Defense ETF (XAR, NYSE Arca)	Aerospace and defense, modified equal weighting	0.35%	$5.27bn (Nov 10, 2026)	2.61% / 2.38% / 0.34% / not held (Nov 9)
Global X Defense Tech ETF (SHLD, NYSE Arca)	Defense technology	0.50%	$6.14bn (Nov 10, 2026)	0.73% / 1.06% / 0.09% / not held (Nov 10)

A small fund brings concentration and closure risk. In DRNZ, AeroVironment and Ondas alone made up about 29% of the fund on November 9, 2026, so almost a third of the fund sat in two holdings. Small funds can be closed by their issuer, and a leveraged drone ETF from Defiance was already delisted in August 2026.

JEDI carries an extra risk from a private holding. JEDI also holds about 6.7% in a vehicle that gives indirect exposure to the private company Shield AI; the issuer treats it as illiquid, it has no market price, and its estimated costs are part of the 0.99% total expense figure. A broad defense ETF gives you a smaller drone slice with much more spread; our defense stocks comparison shows what ITA, XAR and others hold.

How US investors can buy these stocks

The four US companies trade on Nasdaq like any other stock. AeroVironment, Kratos, Red Cat and Ondas can be bought in a normal US brokerage account. If you are opening one for the first time, our guide to brokerage accounts explains cash and margin accounts and what SIPC covers.

The three foreign companies are harder to trade from the US. Their main markets are the Australian Securities Exchange for DroneShield and Xetra in Frankfurt for Rheinmetall and Hensoldt. In the US they trade only over the counter. For Hensoldt, Citibank confirms an unsponsored ADR under the ticker HAGHY, with one ADR equal to one tenth of a share since February 2026. For Rheinmetall and DroneShield, SEC filings show depositary programs, but we could not confirm the OTC tickers on a primary source.

Unsponsored ADRs and OTC lines often trade thinly and at wider spreads than the home market. An unsponsored ADR is set up by a bank without the company’s involvement, so several banks can run separate programs for the same stock. Use limit orders, check the ratio of shares per ADR, and compare the price with the home market. A broker with direct access to foreign exchanges, such as the one in our Interactive Brokers review, lets you buy the primary listing instead.

Risks: what can go wrong with drone stocks

The biggest risks are in the financing and the accounting, not only in the technology. The list below draws on the filings of the seven companies and their latest releases.

• Dilution: Ondas has about six times and Red Cat about 1.8 times as many shares as at the end of 2024. New shares fund growth but reduce each shareholder’s slice.
• Losses behind adjusted figures: several companies show adjusted profit or adjusted EBITDA next to GAAP losses. Compare the GAAP line first.
• Accounting and governance: AeroVironment restated a quarter and reported a material weakness; DroneShield faces an open ASIC investigation.
• Acquisitions: growth at Ondas and AeroVironment comes partly from deals, which bring integration risk and possible write-downs, as AeroVironment’s $240.7 million impairment shows.
• Budgets and timing: orders depend on defense budgets and procurement decisions. A framework agreement or a budget line is not the same as recognized revenue.
• Ethics: most of the growth comes from military use. If you do not want weapons in your portfolio, this sector does not fit.

A contract headline is not revenue. Framework agreements set a ceiling and allow later orders, and budgets say what a government may spend. Revenue is recognized as contractual performance obligations are satisfied, sometimes during production and sometimes when control transfers; orders, funding, revenue and cash receipts are different measures. When you read a headline about billions for drones, check whether it is a firm order, a framework or a budget, and over how many years.

My view as a trader

For traders, drone stocks are a news-driven market, and position size matters more than the story. Summits, large orders or a single regulator notice can move these stocks by double digits in a day. In my own trading I keep positions small in markets like this, work with stop-loss orders and watch a new stock on a watchlist for a few weeks first. This describes how I trade; it is not a recommendation to buy or sell any of these stocks.

Conclusion: real demand, very different companies

The demand for drones and counter-drone systems is real, but the seven companies offer very different risks. Kratos, Rheinmetall and Hensoldt made a profit in their last full year, and drones are only part of their business. AeroVironment has the largest disclosed autonomous systems segment among the US names in this guide, together with a GAAP loss, a restatement and an acquisition to digest. Red Cat, Ondas and DroneShield give the most direct exposure, together with losses, fast-rising share counts or an open investigation.

Choose by exposure and by balance sheet, not by the word “drone” in a headline. Check the segment numbers, the GAAP result and the share count in the latest filing before you buy. Our semiconductor stocks guide and AI stocks guide cover the chip and software side of the same autonomy trend.

Frequently asked questions about drone stocks

What is the best drone stock?

There is no single best drone stock, because the business models differ too much. AeroVironment has the largest autonomous systems segment of the US companies in this guide, DroneShield is a pure counter-drone company, and Kratos and Rheinmetall are defense groups with drone businesses inside. The right choice depends on how much risk you accept.

Which public companies make drones?

Listed drone makers include AeroVironment, Red Cat, Ondas and Kratos in the US. Rheinmetall builds loitering munitions inside a larger defense group. Large names such as DJI, Anduril and Helsing are private, so you cannot buy their shares on an exchange.

Are drone stocks profitable?

Some are, many are not. In their latest full year, Kratos, DroneShield, Rheinmetall and Hensoldt reported a net profit, while AeroVironment, Red Cat and Ondas reported net losses. DroneShield then reported a loss for the first half of 2026, so check the latest period too.

Can US investors buy DroneShield, Rheinmetall or Hensoldt?

Yes, through OTC lines or unsponsored ADRs, or through a broker with access to foreign exchanges. US over-the-counter trading is often thin. Hensoldt’s Citibank ADR trades as HAGHY; for the others, check the ticker and the ADR ratio with your broker.

What is a counter-drone stock?

A counter-drone stock is a company that sells systems to detect, track or defeat hostile drones. DroneShield is a pure counter-drone company; Ondas, AeroVironment, Rheinmetall and Hensoldt sell counter-drone products as part of a broader business.