Electro Optic Systems Holdings Ltd (ASX: EOS) shares are starting the week with a bang.
In morning trade, the ASX All Ords stock is up 14% to $1.48.
This compares favourably to the performance of the ASX All Ords index, which is down 0.35% at the time of writing.
Why is this ASX All Ords stock racing higher?
When it comes to counter-drones, most Aussie investors will immediately think of DroneShield Ltd (ASX: DRO). But it isn't the only company on the ASX boards that sells them.
Electro Optic Systems operates two businesses in Defence Systems and Space Systems.
The Space Systems business specialises in applying internally-developed optical sensors and effectors to detect, track and characterise objects in space. The company notes that this includes capabilities in the domain of space control.
Whereas the Defence Systems business specialises in technology for weapon systems optimisation and integration, as well as ISR (Intelligence, Surveillance and Reconnaissance) and C4 systems for land warfare.
It notes that its key products include next-generation remote weapon systems, vehicle turrets, high-energy laser weapons (directed energy), as well as fully integrated and modular counter-UAS and C4 systems.
This morning, the ASX All Ords stock revealed that it has secured a new order for Remote Weapon Systems amounting to 31 million euros or approximately A$53 million. It notes that the order is from a European naval systems integration business, and is being funded by a Western European government.
Speaking about the new order, the company said:
The order is for EOS' flagship "Slinger" Counter-Drone Remote Weapon System (RWS), and the systems will be configured for naval deployment. The systems will be supplied with a range of weapon configurations, and include some systems with cannons. The order also includes spares, training and other items.
What is the Slinger?
According to its website, the Slinger counter-drone system draws inspiration from the historical Slinger soldiers, which were renowned for their precision in launching small stones to defeat enemies from a distance.
This system effectively counters modern drone threats with a single, lethal shot. It incorporates a radar, a 30mm cannon with specialised ammunition, and proprietary stabilisation and pointing technology.
It is capable of tracking and engaging moving drones beyond 800 metres. The company believes the Slinger is ideal for urban environments due to its unique ammunition.
The All Ords stock advised that the systems are intended to address urgent operational requirements in Europe and delivery is expected to occur during 2025 and 2026. It notes that this order represents the largest order to date for the Slinger Counter Drone RWS, and is its largest ever order for naval RWS.
It follows extensive (and ongoing) marketing and sales activity by the company in several high growth markets.
DroneShield shares are down 4% on the news.
