Electro Optic Systems Holdings Ltd (ASX: EOS) shares remain in a trading halt on Tuesday.
But that hasn't stopped the company from releasing its 2026 annual general meeting (AGM) update.
The defence and space technology company used the event to outline its current strategy, order book, acquisition plans, capital raising, and outlook.
Image source: Getty Images
Turnaround complete
One of the key messages from chair Garry Hounsell was that the company's turnaround phase is now complete.
Hounsell said the board and management had spent the past three years resetting EOS' strategy, leadership, balance sheet, and operating discipline. He said this work was completed in 2025, with the company now entering its next growth phase.
This follows the sale of the non-core EM Solutions business.
Focus on counter-drone and space control
EOS' growth strategy is now centred on counter-drone systems and space control.
The company's core product lines include remote weapon systems, high energy laser weapons, MARSS command-and-control software, and space intelligence and control systems.
Management highlighted that geopolitical tensions and the rapid use of low-cost drones are increasing demand for these capabilities.
Order book growing
EOS advised that its illustrative total order book is now $726 million, including approximately $217 million of acquired MARSS contracts, subject to completion of the acquisition.
The company expects around 60% to 80% of this order book to convert to revenue during 2026 and 2027.
This order book includes recent contract wins across Europe, Australia, the Americas, and the Middle East.
MARSS acquisition
A major focus of the AGM was the proposed acquisition of MARSS, a European command-and-control and AI software business.
EOS said the deal would expand its product range and help it become an integrated turnkey counter-drone systems provider, rather than simply a supplier of individual components.
Management also noted that MARSS has recently secured new orders totalling approximately $165 million from an existing Middle East customer.
Laser and space opportunities
EOS also highlighted its high energy laser program.
In 2025, the company signed a EUR71.4 million contract, worth approximately A$125 million, with the Netherlands for a 100kW high energy laser weapon system. Management said the project is ahead of schedule and expected to be profitable and cash flow positive.
In space, EOS has launched its ATLAS product family, which is being developed to perform missions such as dazzling satellite sensors, disabling satellites, and moving satellites or space debris.
Capital raising and outlook
As mentioned at the top, EOS shares are currently in a trading halt.
This is because it is undertaking a capital raising of up to approximately $175 million, comprising a $150 million placement and a share purchase plan of up to $25 million.
The proceeds will help fund the MARSS acquisition and provide additional balance sheet flexibility to pursue growth opportunities.
Looking ahead, EOS said the market backdrop remains supportive, with strong customer engagement and a growing pipeline of potential future orders.
