Investors who like the idea of ground-floor exposure to what could be a future 10-bagger stock, may wish to consider buying a stake in attack drone company Innovareo when it IPOs on the ASX during 1H 2026.
Buoyed by increased military defence spending by governments globally, the protracted Ukraine war and now the United States-Israel war – drone technology companies, especially those in the defence and counter drone sector - have significantly outperformed the broader market indices like the S&P500 indices.
While NASDAQ-listed drone stocks like Ondas Holdings (NASDAQ: ONDS), Kratos Defence (NASDAQ: KTOS) and Dragonfly (NASDAQ: DPRO) are up 1,354%, 280% and 120% respectively over one year; closer to home, ASX drone starlets like DroneShield (ASX: DRO) and Electro Optic Systems (ASX: EOS) are up 364% and 728% over the same period.
Based on these numbers, it’s easy to see why the decision by Perth-based drone maker Innovareo to IPO is expected to appeal to retail and institutional investors alike.
What we know about Innovareo
Here’s what we know about the privately-listed company so far.
During Euroz Hartleys’ highly secretive 26th annual conference at Rottnest Island off the coast of Perth earlier this week - which typically attracts 130 institutional investors - the broker revealed that it is exploring a possible IPO and public listing for Innovareo by June this year.
Late last year, Innovaero’s founders, including the largest shareholder, Michael von Bertouch - who developed the airborne camera technology bought out by Nearmap and Spookfish - took back control after global defence outfit BAE Systems sold its majority stake.
Commenting on the company’s return to full ownership last December, von Bertouch told the market that Innovaero plans to accelerate investment, expand its manufacturing footprint, and deliver the next generation of affordable precision mass capabilities for the Australian Defence Force (ADF) and its allies.
Following the change in ownership, Innovaero appointed its Chief Strategy and Development Officer, Greg Tunny - a former Australian Submarine Corporation chief – as CEO.
Tunny succeeds Marcus Colman, who will return to BAE after two years and oversee significant commercial maturation.
Since then, Innovareo has maintained its strategic partnership with BAE Systems Australia and has continued to progress its precision-strike and counter-UAS programs.
Flagship products
In addition to its flagship product OWL - a suite of loitering munitions designed to loiter until a target is located and conduct a strike – the company, together with BAE, has also developed STRIX, a drone that can take off and land vertically.
While Innovareo has commercial clients in Australia, the U.S. and Canada, its client base and strategic partnerships are heavily focused on sovereign defence and advanced aerial technology.
As a private company, Innovaero does not publicly disclose its earnings or its client base; however, its major clients are understood to include the Department of Defence (ADF), Royal Australian Navy (RAN), and Australian Border Force (ABF).
Established in 2011, Innovareo is understood to employ around 50 people.
Half of these are professional design, propulsion and airworthiness certification engineers who designed and built the award-winning BigEye aerial camera system for Spookfish that generated $30 million in direct payments and royalties in just two years.
Financials
Innovaero does not publicly disclose its detailed earnings or profit and loss statements, yet recent reports and contract awards provide a snapshot of its financial scale:
The company secured an $11.6 million contract with the Australian Defence Force's Advanced Strategic Capabilities Accelerator (ASCA) for the delivery of the One Way Loitering (OWL)-B flight vehicle.
Prior to its recent major defence contracts, independent business databases estimates suggest Innovaero's annual revenue at less than $5 million.
While Cfoam Limited Investment invested $1.975 million in Innovaero via convertible notes in 2021, in October 2023, Innovaero successfully redeemed these notes, paying Cfoam $2.468 million, which represented a 1.25x return on the principal.
Drone stocks behaving badly
While investor interest in drone technology stocks has accelerated along with the success of high-profile operators like DroneShield and Electro Optic Systems, both stocks have experienced the market’s wrath for some recent fancy footwork.
Electro’s CEO Andreas Schwer raised investor eyebrows last Tuesday when he announced plans to sell almost his entire stake in the company to build a house and cover his divorce.
Four months earlier, investors were left blindsided by a similar move made by the CEO and several directors at DroneShield.
Meanwhile, KTEK Systems, a supplier of airframes for combat drones to defence manufacturers in the U.S., European Union and Israel and backed by Regal’s emerging companies fund, is also eyeing an ASX listing later this year.



