The S&P/ASX 300 Index (ASX: XKO) has lost 1.2% over the first two days of trade this week, despite the best lifting efforts of this rocketing ASX 300 defence stock.
And no, it's not DroneShield Ltd (ASX: DRO). Though DroneShield shares come in a close second, having already gained 35.8% this week following the announcement of a new contract order.
Instead, the rocketing company in question is remote weapon systems developer Electro Optic Systems Holdings Ltd (ASX: EOS).
Electro Optic Systems shares closed last Friday trading for $5.01. When the closing bell sounded on Tuesday, shares were swapping hands for $7.56 apiece.
That sees shares in the ASX 300 defence stock up a whopping 50.9%. In just two days.
And investors who bought EOS shares 12 months ago, when the stock was trading for $1.05, are now sitting on gains of 620.0%. Or enough to turn an $8,000 investment into $57,600.
Boom!
Now, here's what just sent the Electro Optic Systems share price rocketing again this week.
Image source: Getty Images
ASX 300 defence stock inks new laser weapons deal
Laser weapons have well and truly moved from Hollywood fantasy to real world reality. And Electro Optic Systems is helping supercharge their development.
On Monday, the ASX 300 defence stock closed up 28.9% after announcing it had signed an agreement to supply a 100kW laser weapon to an undisclosed South Korean customer.
The binding conditional contract was valued at US$80 million (AU$120 million). The two parties also agreed to establish a joint venture in the country.
"The EOS laser weapon development program included three years of field testing and numerous firing trials of the laser in close collaboration with customers," management said. "To ensure high performance, it is supplied with algorithms, radar, threat detection, target acquisition and beam locking systems."
And demand for the new high energy laser appears to be growing.
Management added:
This conditional contract represents EOS' second export order for a 100kW class laser defence system and follows a first export order to a Western European customer, announced on 5 August 2025.
Is it too late to buy Electro Optic Systems shares?
After surging 620% in a year, is it too late to buy the ASX 300 defence stock?
Not according to the analysts at Bell Potter.
Following on Monday's US$80 million laser weapon sales announcement, the broker noted, "We view this award as further evidence of the significant revenue opportunity available to EOS from the directed energy counter-drone (C-UAS) vertical."
Bell Potter increased its price target on Electro Optic Systems shares from $8.10 to $9.00.
That represents a potential further upside of 19% from Tuesday's closing price.
