Draganfly Explores Strategic Defense & Security Collaboration with Babcock and Critical Infrastructure Technologies Across the Asia-Pacific Region

Rhea-AI Summary

Draganfly (NASDAQ: DPRO) announced on December 8, 2025 a collaborative framework with Babcock and Critical Infrastructure Technologies (CiTech) to explore multi-company initiatives strengthening defense and security capabilities across the Asia-Pacific region.

The arrangement follows a Non-Disclosure Agreement and combines Babcock's mission-critical engineering and sustainment, CiTech's high-assurance digital architectures and sensor platforms, and Draganfly's NDAA-compliant unmanned aerial systems including the Commander 3XL. The partners will assess targeted collaborations for defense modernization, maritime and border security, disaster response, critical infrastructure protection, and multi-domain situational awareness.

Key Figures

Q3 2025 revenue $2.16M Quarterly revenue, +14.4% year-over-year

Product sales $1.62M Q3 2025, +22.1% year-over-year

Gross profit $420,947 Q3 2025, 19.5% gross margin

Inventory write-down $43,337 One-time Q3 2025 impact on margins

Net loss $5.17M Q3 2025 net loss

Capital raise US$25.0M Registered direct offering in Q3 2025

Cash balance $69.88M Cash at September 30, 2025

52-week range $1.63 – $14.40 Pre-news 52-week low and high for DPRO

Market Reality Check

$6.97 Last Close

Volume Volume 1,831,533 is roughly in line with 20-day average 1,862,316 (relative volume 0.98). normal

Technical Price $7.67 is trading above 200-day MA at $4.76, indicating a pre-news uptrend.

Peers on Argus

Most Aerospace & Defense peers showed modest declines (e.g., OPXS -5.04%, HOVR -2.75%, CODA -2.39%), while DPRO was down 7.14%, pointing to a more stock-specific move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 20	Military drone order	Positive	+2.1%	Strategic international military order for Commander 3XL evaluation program.
Nov 18	Border drone demos	Positive	+3.6%	Outrider border drone demos driving multi-agency procurement interest.
Nov 13	Telecom drone order	Positive	-7.2%	Second major order from Fortune 50 telecom for Commander 3XL fleet.
Nov 12	Q3 2025 earnings	Negative	-3.7%	Q3 revenue growth but net loss and equity raise pressured shares.
Nov 12	AI collaboration	Positive	-3.7%	Palladyne AI collaboration to integrate AI with Draganfly UAVs.

Pattern Detected

Positive defense and drone contract news often saw supportive or mixed price reactions, while some earnings and partnership updates triggered pullbacks.

Recent Company History

Over the last few months, Draganfly reported Q3 2025 revenue of $2.16M (+14.4% YoY) and raised US$25.0M, yet the stock fell after earnings on Nov 12. Subsequent news highlighted growing defense traction: a second major order from a Fortune 50 telecom, successful Outrider border-drone demonstrations, and a strategic military order for Commander 3XL, which generally produced modest gains. Today’s Asia-Pacific collaboration continues this theme of expanding defense and security relationships.

Market Pulse Summary

This announcement highlights Draganfly’s effort to deepen its presence in Asia-Pacific defense and security through collaboration with Babcock and CiTech, combining unmanned aerial systems, digital architectures, and mission systems. Recent history shows growing military and telecom demand for its drones alongside Q3 2025 revenue of $2.16M and a net loss of $5.17M. Investors may watch for concrete contract wins, program awards, and follow-on orders stemming from this framework agreement.

Key Terms

non-disclosure agreement regulatory

"The arrangement follows the recent execution of a Non-Disclosure Agreement among the parties."

A non-disclosure agreement is a legal contract that prevents one or more parties from sharing confidential information with others. It matters to investors because it helps protect sensitive business details, ensuring that important information remains private and cannot be used against the company or its partners. Think of it as a formal promise to keep certain information secret, similar to a trust between friends about a surprise gift.

digital architectures technical

"adds high-assurance digital architectures, integrated sensor platforms, and resilient decision-support systems"

Digital architectures are the organized design and layout of a company’s technology systems—how data, software, servers and user interfaces connect and work together. Like the blueprint and wiring of a building, they determine how fast a business can add features, handle traffic, protect information and control costs. Investors care because strong architectures enable growth, reduce outages and security risk, and make future investments more efficient and predictable.

integrated sensor platforms technical

"adds high-assurance digital architectures, integrated sensor platforms, and resilient decision-support systems"

Integrated sensor platforms are systems that combine multiple sensing devices, data processing, and connectivity into one coordinated package so they can detect, analyze and share measurements automatically. For investors, they matter because they turn raw physical signals (like temperature, motion, chemical levels or biometric readings) into usable information that can enable recurring services, product differentiation and new revenue streams—think of them as a smartphone for sensing that can scale across industries.

decision-support systems technical

"adds high-assurance digital architectures, integrated sensor platforms, and resilient decision-support systems"

Decision-support systems are software tools that gather and display relevant data, analyses, and scenarios to help professionals weigh options and choose a course of action; like a GPS that shows route choices, travel times and traffic risks, they inform but do not make decisions. Investors care because these systems can speed decisions, reduce costly mistakes, improve regulatory compliance and create recurring revenue or competitive advantages that influence a company’s costs, growth prospects and valuation.

unmanned aerial systems technical

"Draganfly’s NDAA-compliant unmanned aerial systems, including its Commander 3XL, provide multi-mission ISR"

Unmanned aerial systems are complete drone setups: the aircraft itself plus the remote control, sensors, communications links and support equipment that let it fly without a person on board. Think of it as a flying robot plus its command center and toolbox. Investors watch these systems because they open new commercial and defense markets, carry revenue and regulatory risks, and can change how goods, data and services are delivered.

multi-mission isr technical

"provide multi-mission ISR, rapid-response capability, and operationally proven aerial intelligence"

Multi-mission ISR describes a system or platform that performs intelligence, surveillance and reconnaissance (ISR) tasks in multiple roles, environments or with different sensors — like a Swiss Army knife that can watch, detect and gather information from air, land or sea. For investors, versatility matters because a multi-mission system can win more and larger contracts, lower buyers’ need for separate specialized equipment, and generate steady service, upgrade and training revenue that affects a supplier’s sales and valuation.

situational awareness technical

"critical infrastructure protection, and multi-domain situational awareness."

Awareness of the real-time business, market and regulatory conditions that could affect an investment; like a driver scanning the road for hazards, it means continuously noting news, price moves, regulatory signals and other forces that change a company’s prospects. Investors rely on situational awareness to react quickly to risks and opportunities, adjust position size, protect capital and seize short‑lived advantages before the environment shifts.

sovereign capability technical

"The Asia-Pacific region continues to prioritize sovereign capability, security resilience, and advanced rapid-response technologies."

Sovereign capability is a country’s ability to supply, control or quickly restore access to critical goods, services or technologies—such as energy, medicines, defense equipment or digital infrastructure—without relying on external providers. For investors it signals where governments may direct money, contracts, regulation or trade protection to secure supply chains; think of it like a household keeping a backup generator so it won’t be left powerless when the grid falters.

AI-generated analysis. Not financial advice.

London, England, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8A) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, today announced that it has entered into a collaborative framework with Babcock International Group PLC (LSE: BAB) and Critical Infrastructure Technologies Corp. (CSE: CTTT), operating through its subsidiary CiTech International Ltd., to explore multi-company initiatives aimed at strengthening defense and security capabilities across the Asia-Pacific region. The arrangement follows the recent execution of a Non-Disclosure Agreement among the parties.

The collaboration brings together complementary strengths in defense engineering, digital mission systems, and advanced unmanned aerial solutions. Babcock contributes decades of mission-critical engineering expertise, fleet sustainment, naval support, training, and defense program delivery for governments and allied militaries around the world. Critical Infrastructure Technologies, through CiTech, adds high-assurance digital architectures, integrated sensor platforms, and resilient decision-support systems designed for complex national security environments.

Draganfly’s NDAA-compliant unmanned aerial systems, including its Commander 3XL, provide multi-mission ISR, rapid-response capability, and operationally proven aerial intelligence that complement the strengths of both partners. Together, the companies aim to evaluate opportunities supporting regional priorities such as defense modernization, maritime and border security, disaster response, critical infrastructure protection, and multi-domain situational awareness.

“This collaboration represents a meaningful step in Draganfly’s continued expansion into the Asia-Pacific defense market,” said Cameron Chell, Chief Executive Officer of Draganfly. “By aligning our proven aerial systems with the established capabilities of Babcock and CiTech, we see significant opportunity to contribute to long-term defense modernization programs that require interoperable, high-assurance technologies. The demand for resilient, sovereign mission capabilities across the region continues to grow, and Draganfly is well positioned to support that evolution with dependable, mission-ready solutions.”

The Asia-Pacific region continues to prioritize sovereign capability, security resilience, and advanced rapid-response technologies. The combined capabilities of Draganfly, Babcock, and CiTech position the group to meet these evolving needs with interoperable, scalable, and mission-ready solutions. The parties will now begin assessing targeted collaborations and joint program concepts tailored to the region’s requirements.

About Draganfly

Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8A) is the creator of quality, cutting-edge drone solutions, and software that revolutionize the way organizations do business and serve their stakeholders. Recognized as being at the forefront of technology for over 25 years, Draganfly is an award-winning industry leader serving the public safety, public health, mining, agriculture, industrial inspections, security, mapping, and surveying markets. Draganfly is driven by passion, ingenuity, and the need to provide efficient solutions and first-class services to its customers around the world, with the goal of saving time, money, and lives.

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About Babcock International Group PLC

Babcock International Group PLC is one of the United Kingdom’s leading defense primes, with global expertise in mission-critical engineering, naval support, fleet management, training, base operations, and the delivery of large-scale defense programs. Babcock’s longstanding support to the UK Ministry of Defence and allied nations worldwide provides deep operational credentials and a trusted pathway into rapidly evolving Asia-Pacific defense markets.

About Critical Infrastructure Technologies Corp. (CSE: CTTT)

Critical Infrastructure Technologies Corp. is a publicly traded Canadian technology company focused on developing and delivering advanced solutions for national security, defense, energy, and critical infrastructure. Through its operating subsidiary CiTech International Ltd., the company provides digital architectures, integrated sensor platforms, mission systems, and operationally resilient technologies that support strategic decision-making and mission readiness.

About CiTech International Ltd.

CiTech International Ltd. is a UK-based systems-engineering and technology-integration company specializing in defense, national security, and complex mission environments. CiTech designs and implements engineering architectures, sensor systems, command-and-control platforms, and digital technologies that support operational resilience and strategic situational awareness.

Media Contact

Erika Racicot
media@draganfly.com

Company Contact

Cameron Chell
Chief Executive Officer
(306) 955-9907
info@draganfly.com

Forward-Looking Statements

This release contains certain “forward looking statements” and certain “forward-looking ‎‎‎‎information” as ‎‎‎‎defined under applicable securities laws. Forward-looking statements ‎‎‎‎and information can ‎‎‎‎generally be identified by the use of forward-looking terminology such as ‎‎‎‎‎“may”, “will”, “expect”, “intend”, ‎‎‎‎‎“estimate”, “anticipate”, “believe”, “continue”, “plans” or similar ‎‎‎‎terminology. Forward-looking statements ‎‎‎‎and information are based on forecasts of future ‎‎‎‎results, estimates of amounts not yet determinable and ‎‎‎‎assumptions that, while believed by ‎‎‎‎management to be reasonable, are inherently subject to significant ‎‎‎‎business, economic and ‎‎‎‎competitive uncertainties and contingencies. Forward-looking statements ‎‎‎‎include, but are not ‎‎‎‎limited to, statements with respect to Draganfly’s NDAA-compliant unmanned aerial systems, including its Commander 3XL, providing multi-mission ISR, rapid-response capability, and operationally proven aerial intelligence that complement the strengths of both partners. Forward-‎‎‎‎looking statements and information are subject to various ‎known ‎‎and unknown risks and ‎‎‎‎‎uncertainties, many of which are beyond the ability of the Company to ‎control or ‎‎predict, that ‎‎‎‎may cause ‎the Company’s actual results, performance or achievements to be ‎materially ‎‎different ‎‎‎‎from those ‎expressed or implied thereby, and are developed based on assumptions ‎about ‎‎such ‎‎‎‎risks, uncertainties ‎and other factors set out here in, including but not limited to: the potential ‎‎‎‎‎‎‎impact of epidemics, ‎pandemics or other public health crises, including the ‎COVID-19 pandemic, on the Company’s business, operations and financial ‎‎‎‎condition; the ‎‎‎successful integration of ‎technology; the inherent risks involved in the general ‎‎‎‎securities markets; ‎‎‎uncertainties relating to the ‎availability and costs of financing needed in the ‎‎‎‎future; the inherent ‎‎‎uncertainty of cost estimates; the ‎potential for unexpected costs and ‎‎‎‎expenses, currency ‎‎‎fluctuations; regulatory restrictions; and liability, ‎competition, loss of key ‎‎‎‎employees and other related risks ‎‎‎and uncertainties disclosed under the ‎heading “Risk Factors“ ‎‎‎‎in the Company’s most recent filings filed ‎‎‎with securities regulators in Canada on ‎the SEDAR ‎‎‎‎website at www.sedar.com and with the United States Securities and Exchange Commission (the “SEC”) on EDGAR through the SEC’s website at www.sec.gov. The Company undertakes ‎‎‎no obligation to update forward-‎looking ‎‎‎‎information except as required by applicable law. Such forward-‎‎‎looking information represents ‎‎‎‎‎managements’ best judgment based on information currently available. ‎‎‎No forward-looking ‎‎‎‎statement ‎can be guaranteed and actual future results may vary materially. ‎‎‎Accordingly, readers ‎‎‎‎are advised not to ‎place undue reliance on forward-looking statements or ‎‎‎information.‎

FAQ

What did Draganfly (DPRO) announce on December 8, 2025 about Asia-Pacific defense collaboration?

Draganfly announced a collaborative framework with Babcock and Critical Infrastructure Technologies to explore defense and security initiatives across the Asia-Pacific following a signed NDA.

Which technologies will Draganfly (DPRO) bring to the collaboration with Babcock and CiTech?

Draganfly will contribute NDAA-compliant unmanned aerial systems, including the Commander 3XL, for multi-mission ISR and rapid-response aerial intelligence.

What regional priorities will the Draganfly, Babcock, and CiTech group evaluate in the Asia-Pacific?

They will assess opportunities in defense modernization, maritime and border security, disaster response, critical infrastructure protection, and multi-domain situational awareness.

Is the Draganfly collaboration with Babcock and CiTech a binding contract or still exploratory?

The parties executed a Non-Disclosure Agreement and are exploring collaborative opportunities; no binding transaction or contract terms were announced.

How does Babcock's expertise complement Draganfly (DPRO) in the announced collaboration?

Babcock brings decades of mission-critical engineering, fleet sustainment, naval support, training, and defense program delivery for governments and allied militaries.