Takeovers, Drone Potential, Full Pipeline: Rheinmetall, DroneShield, and First Hydrogen in Focus

First Hydrogen: AI-Driven Robotic Ground Drones

First Hydrogen is working to establish itself as a diversified provider of future technologies. The company's hydrogen strategy remains the starting point. Since last year, the company has been conducting research on Small Modular Reactors, or SMRs for short. These compact reactor concepts are considered a potential building block of a future energy supply. They are intended to provide reliable electricity while remaining relatively decentralized. This aligns well with First Hydrogen, as the electricity can be used to produce clean hydrogen. The AI industry is particularly focused on the development of SMRs in the US.

Now comes the entry into AI-powered robotic ground drones. With this, First Hydrogen is tapping into several future markets at once. To this end, the company has secured worldwide exclusive rights to the further development of a patented unmanned ground vehicle. The platform is designed for autonomous or remote-controlled operations and addresses applications ranging from security and surveillance tasks to logistics and operations in hazardous environments. Particularly in defense, infrastructure, and industry, there is a growing need for systems that reduce the workload on personnel, minimize risks, and automate processes.

Technologically, the concept relies on an interesting mix. The vehicle is to be powered by solar energy, batteries, and First Hydrogen's core expertise: hydrogen. First Hydrogen expects this to deliver a combination of endurance, quiet operation, and locally emission-free use. Added to this is a modular design. Eight movable legs with integrated wheel components are designed to ensure that the platform not only moves efficiently on solid surfaces but can also navigate challenging terrain. With interchangeable modules, the platform could be adapted for a wide variety of tasks—such as material transport, security services, emergency response, or as mobile support for drone operations.

The planned business model is also exciting. First Hydrogen views the technology not just as a product, but as a service solution. In doing so, the company builds directly on its existing Hydrogen-as-a-Service model and is now applying this approach to the robotics sector. Drones-as-a-Service ("DaaS") is an on-demand or subscription model that enables companies to use the products, including pilots, without having to bear the high investment costs of purchasing and maintaining the equipment themselves. According to Precedence Research, the current market for drone services is estimated at USD 20.2 billion and is projected to grow to USD 142.2 billion by 2035.

Rheinmetall: A Move for the Modern Battlefield

Rheinmetall is traditionally associated with heavy military hardware such as battle tanks and ammunition. However, modern conflicts are increasingly defined by connectivity, automation, and unmanned systems. The Düsseldorf-based firm has also recognized this trend and is gradually aligning its portfolio with the requirements of the battlefield of the future.

The acquisition of a majority stake in DOK-ING is a logical extension of this strategy. Rheinmetall is acquiring a 51% stake in the Croatian company, thereby securing expertise in unmanned vehicles as well as a strategic location in Croatia. DOK-ING is best known for remote-controlled and increasingly autonomous systems used in mine clearance and operations in hazardous environments. Such solutions are proving particularly valuable in the war in Ukraine.

Together, the two companies plan to develop new unmanned systems for combat and support missions based on the modular hybrid "Komodo" platform. Rheinmetall is contributing modules for fire support, reconnaissance, logistics, and mine clearance and laying, among other things. Looking ahead, the focus is even on armed unmanned support vehicles that can be deployed alongside battle tanks and armored personnel carriers. Rheinmetall is thus demonstrating that the group not only serves the traditional military sector but also aims to play a role in next-generation autonomous land warfare.

DroneShield: Billions in the Pipeline

The more drones and other unmanned systems dominate the modern battlefield, the more important their defense becomes. This is exactly what DroneShield specializes in. The Australian company develops technologies for detecting and defending against drones, thereby tapping into a trend of the times. The stock has already gained around 30% this year. At a price of EUR 2.56, it is now valued at around EUR 2.5 billion. That is a modest figure given projected revenue of AUD 216.5 million in 2025. However, the company is expected to grow rapidly.

In the latest investor presentation, a well-stocked sales pipeline drew attention. Overall, the sales pipeline stood at AUD 2.3 billion as of the end of February 2026. In the first two months of the current year alone, it has thus grown by around AUD 259 million, which is more than the company's total revenue for 2025. Europe, including the UK, is currently particularly strong. There, DroneShield estimates its pipeline at AUD 1.2 billion from 78 projects. In Asia, excluding China, the pipeline totals AUD 481 million from 28 projects. For the US, DroneShield reports AUD 283 million from 112 projects.

DroneShield's pipeline puts the valuation in a different light. The stock is not a bargain, but it is also likely to grow significantly in the coming years. In contrast, First Hydrogen currently has a modest market capitalization of CAD 17 million. This is likely to change quickly once partnerships or contracts related to the new ground drones materialize. Rheinmetall remains a core investment in the European defense sector. However, the stock is currently struggling.