viewXTEK Ltd

XTEK signs support services agreement with ADF for WASP drone repairs and maintenance

The contract demonstrates XTEK’s full-service capability to provide after-market services for ADF’s growing SUAS fleet.

Xtek Ltd - XTEK signs support services agreement with ADF for WASP drone repairs and maintenance
XTEK provides unique solution for western military forces and other government agencies

XTEK Limited (ASX:XTE) has signed an exclusive support services agreement with the Australian Defence Force (ADF) to provide additional repair and maintenance services for AeroVironment WASP Small Unmanned Aerial Systems(SUAS).

This comes after the tech company secured a long-term contract with the ADF worth more than $10 million, the fourth contract notice issued by AusTender to date with the previous three worth a combined total of more than $600,000.

Underpinned by future deliveres under the original contract, as well as growing orders from the ADF for additional SUAS and spare parts, XTEK is well positioned to capture additional support revenue.

Potential to capitalise as incumbent supplier

XTEK managing director Philippe Odouard said it was a significant contract win for the business to support the ADF’s growing SUAS fleet.

The company has delivered 59 WASP AE SUAS to date, with another 20 systems scheduled to be delivered in 2020.

Further sales are possible as the ADF finds innovative applications to employ SUAS in the field and XTEK capitalises on its present position of incumbent supplier.

“Guaranteed support work over medium and long term”

Odouard added: “This follows the recent installation of the repair and maintenance facility and represents guaranteed support work over the medium and long term.

“We are a full-service SUAS supplier, with the ability to provide training, spares, repairs and ongoing maintenance services.

“This is aligned with the Federal Government’s objective to increase domestic content and intellectual property within defence procurement and we look forward to working with the ADF.”

Multiple options to extend

The long-term support contract is for three years with multiple options to extend the contract through to 2026, with an anticipated revenue of up to $5 million a year.

Overall it is expected that the ongoing contract could be worth up to $35 million in revenue over seven years.

XTEK’s key support services consist of spare parts, training, maintenance and repairs, including installation of spare parts, electronics and composite materials of the product itself.

Most of the contract will be completed in Australia except for the OEM parts coming from AeroVironment in the US.

Quick facts: XTEK Ltd


Price: 0.39 AUD

Market Cap: $27.7 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...


XTEK presents its world-class soldier solution innovations at Proactive...

XTEK Ltd (ASX:XTE) managing director Philippe Odouard spoke about the company’s world-class innovations in soldier solutions at Proactive's Technology Webinar on Tuesday, July 13.  He said the business revolved around helping the soldiers on the front-line, which include ‘Ballistic Solutions’...

on 16/7/21

2 min read