Sovereign Skies: The Aussie tech companies redefining the future of flight

• DroneShield surges 450% YTD as demand soars for its counter-drone systems, including a $25m Latin American deal
• Electro Optic Systems continues to expand its high-tech defence capabilities in satellites, sensors and weapon systems
• Hypersonix Launch Systems secures $46m to scale its hydrogen-powered scramjet aircraft, including backing from NRF and QIC

Special Report: As global powers race to dominate the next generation of aerial defence, a trio of Australian companies is staking the nation’s claim at the forefront of sovereign aviation technology through precision, speed and innovation.

At the tactical end of the spectrum, DroneShield (ASX:DRO) is making headlines for its role in protecting airspace.

DroneShield has developed proprietary counter-drone technology that detects, tracks and disables unmanned aerial threats – a growing concern in battlefield and civilian settings.

The company recently announced a $25.3 million contract to supply a Latin American government via its in-country defence partner.

It marks a new high for the company, whose share price has risen more than 450% in 2025.

“DroneShield continues to position itself as one of the preferred C-UAS systems in Latin America,” said CEO Oleg Vornik.

“As demand evolves, we’re ready to meet the requirements from a region where drones play a key role in modern warfare.”

Mach 7 dreams and hydrogen fuelled flight

Leading the charge in super-fast flight is Hypersonix Launch Systems, a Brisbane-based aerospace startup that has just closed a landmark $46m Series A funding round.

The raise includes investments from the National Reconstruction Fund, Queensland Investment Corporation and global defence players including Saab Ventures and MBDA, the European missile systems giant.

Hypersonix’s flagship vehicle, the DART AE, is the world’s first hydrogen-powered aircraft with a 3D-printed scramjet engine designed to fly at speeds of Mach 7 and beyond all with zero carbon emissions.

The platform will undergo testing with NASA and the US Department of Defense under the HyCAT program in January next year.

“Hypersonix represents a step-change in how we think about high-speed flight – not just for defence, but for the future of space access and global logistics,” said CEO Matt Hill.

“What’s especially exciting is that we’re doing this in Brisbane, tapping into Queensland’s incredible research talent and building a sovereign supply chain around scramjet manufacturing.”

Founded by former UQ hypersonics professor Dr Michael Smart, Hypersonix has assembled a team of local engineers and deep-tech specialists, many drawn from the University of Queensland and surrounding institutions.

The company is seen as a core contributor to Australia’s AUKUS Pillar 2 ambitions, focusing on advanced capabilities and emerging technologies.

Electro Optic Systems: Quiet giant of guided firepower

Meanwhile, Electro Optic Systems (ASX:EOS) serves as another cornerstone of Australia’s defence‑aviation push this time in directed‑energy and counter‑drone systems.

In August 2025, EOS secured a landmark 100 kW high‑energy laser weapon contract valued at approximately A$125m, awarded by a European NATO member state.

The system – mobile, truck‑mounted and capable of neutralising up to 20 drones per minute – is widely described as the world’s first export order of its kind.

CEO Dr Andreas Schwer called it a “groundbreaking deal” that positions Australia at the frontier of laser‑based air defence.

Unlike missiles, which can cost millions per shot, EOS’s laser system costs just cents and operates “at the speed of light”.

“This is the first major international supply contract of this size in the laser weapon industry – a real milestone for both EOS and Australia’s defence sector,” said Dr Schwer.

The system was developed at EOS’s Laser Innovation Centre in Singapore, but builds on the company’s long-standing Canberra engineering and kinetic counter-UAS pedigree.

The laser adds a powerful new layer to EOS’s growing defence stack, with further developments underway in naval variants and 150 kW-class upgrades.

This article was developed in collaboration with Hypersonix Launch Systems, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.