Draganfly Inc. (DPRO) Surges 9.51% on U.S. Army Contract, Manufacturing Expansion

Draganfly Inc. (DPRO) surged 9.51% in its fifth consecutive day of gains, propelling the stock to its highest level since October 2025. The share price hit an intraday high with a 19.68% rally, reflecting renewed investor confidence amid strategic momentum in defense and drone technology sectors.

Recent developments underscore Draganfly’s growing influence in critical applications. The company secured a U.S. Army contract to supply Flex FPV drone systems for overseas training, validating its technology for defense use. Demonstrations of its Commander 3XL and Flex FPV models at military exercises, including T-REX 24-2, highlighted capabilities in surveillance and emergency response, bolstering credibility with defense clients.

Expansion of its manufacturing footprint further supports growth. A new production facility in Saskatoon, Canada, launched in Q3 2025, aims to meet rising demand for U.S.-made drones, aligning with procurement policies and reducing supply chain dependencies. This move positions Draganfly to capitalize on government contracts prioritizing domestic production.

Analyst upgrades and market visibility have amplified interest. HC Wainwright upgraded the stock to "Buy," citing technological differentiation and defense partnerships. Positive coverage in industry analyses emphasized Draganfly’s potential in the $14.55 billion U.S. drone market and its role in addressing global emergency management needs, such as wildfire suppression under Transport Canada approvals.

Strategic collaborations extend beyond defense. The Starling X.2 drone, designed for aerial advertising, and partnerships with Promo Drone diversify its offerings into commercial markets. Meanwhile, involvement in Ukraine’s landmine clearance efforts through DSNS Emergency Services aligns with geopolitical demand, opening avenues for international aid-linked contracts.

Despite revenue growth in Q2 2025 and cost optimization, financial metrics remain challenging. Negative EBIT margins and high valuation multiples highlight risks of overvaluation. However, the stock’s recent technical strength, including a 24.79% five-year revenue increase, suggests resilience as it navigates market volatility typical of its sector.