Electro Optic Systems Holdings (EOS) – A company maker

Electro Optic Systems develops and manufactures anti-drone software and systems and related laser weaponry it sells to military customers. The company operates in Australia, Asia, New Zealand, the UAE, North America and Europe. Electro Optic Systems was founded in 1983 and is headquartered in Canberra, Australia.

Electric Optic Systems recently won a €71.4 million ($125 million) contract win for its high energy laser weapon (HELW) used to defend against drone attacks. The buyer is a European NATO member state with the order to be fulfilled during 2025–2028 by EOS Singapore. This contract win is a company maker for EOS and is the “world’s first export order of a 100-kilowatt class laser defence system”. EOS estimates the non-US customer addressable market for this class of counter-drone weapon to be circa 200 units, or in excess of US$10 billion ($15 billion) over the next five years. Given its first-mover advantage, we estimate EOS will secure an additional $1.3 billion in orders in the period to FY32. The expected gains over FY28–FY32 see our target price increase by 93% to $4.25 per share and we upgrade our recommendation to a Buy.

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