Electro Optic Systems Holdings Ltd (ASX: EOS) shares are trading higher after the company said it had secured two new unconditional orders for counter-drone systems worth a total of US$45 million, and flagged growing interest out of the Middle East following the conflict in the region
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Anti-drone capability in demand
The counter-drone technology company said it had secured an order for its Slinger Remote Weapon System from a customer in the Middle East, under the understanding that the system would be used to strengthen defence systems in light of the ongoing conflict in the region.
The order includes the Slinger system, cannons, platform integration, psrae training, and other supplies.
The company added:
The EOS Slinger RWS is EOS' market leading counter-drone cannon-based defence system. This sale is to an established customer country in the Middle East and the customer is a large, established defence prime contractor with several large-scale government and export contracts. The customer has requested that EOS do not disclose the customer identity due to national security considerations.
The systems are expected to be manufactured in Australia and delivered in 2026.
EOS added that this delivery program might require the company to reassess its production schedules during 2026 and 2027.
EOS also said it had secured a US$3 million order through its US division for the integration of a counter-drone system.
The company said:
Due to the sensitive nature of the order, the customer has requested that the final product, the customer and the end-user not be named. The customer is a large established US Defence contractor. The product will be manufactured in Australia and the order is expected to be fulfilled during 2026.
Conflict driving interest
Regarding the ongoing conflict in the Middle East, EOS said the situation had caused heightened interest among potential buyers.
The company added:
During March 2026 EOS has continued discussions with several Middle Eastern governments and related representatives regarding the provisions of advanced counter-drone systems. Those systems include the established cannon-based Slinger RWS product; our High-Energy Laser Weapon APOLLO product range; and other related products for infrastructure protection. EOS views that the current military conflict may accelerate those opportunities albeit there is no guarantee that any additional orders will be secured.
EOS shares were trading 3.3% higher on Friday at $10.25. The company was valued at $2.06 billion at the close of trade on Thursday.
EOS shares have been under pressure this week after the company said in a statement to the ASX that it had been compelled to disclose more information about a previously announced US$80 million high-energy laser contract.
EOS did not initially disclose the identity of the buyer, which it has now done, while also furnishing more details about conditions relating to the contract.
