Electro Optic Systems Holdings Ltd (ASX: EOS) shares are moving higher on Monday after the defence company released a trading update.
At the time of writing, the EOS share price is up 0.75% to $9.40.
The gain provides some relief after a difficult week for shareholders.
EOS shares have fallen almost 15% over the past 5 trading sessions as the market digested the company's heavily oversubscribed share purchase plan (SPP).
However, the stock remains up more than 260% since this time last year.
Here are the details from this morning's announcement.
Image source: Getty Images
New US order secured
According to the release, EOS has received a US$5 million (roughly $7 million) order from American defence company L3Harris.
The order covers the integration of a counter-drone weapon system, which will be manufactured in Australia and delivered during 2026.
While the contract isn't one of EOS' largest recent contracts, it still brings another major defence company onto its customer list.
Management also said enquiries remain strong, helped by the ongoing conflicts in the Middle East and Europe.
Revenue guidance revealed
EOS expects its existing business, excluding MARSS, to generate between $240 million and $270 million of revenue in 2026.
That would represent a substantial increase from the $128.5 million reported from continuing operations in 2025.
The company said this outlook is based on its secured order book and doesn't include revenue from possible new contracts.
There are still a few moving parts though. EOS said the timing of revenue will depend on suppliers delivering on schedule and global supply chains avoiding any major disruptions.
Including MARSS, the group now has an unconditional order book worth $726 million. EOS expects around 60% to 80% of that work to turn into revenue during 2026 and 2027.
MARSS outlook still under review
Investors will have to wait a little longer to find out how much revenue MARSS could contribute.
EOS completed the counter-drone tech acquisition last month after first announcing the deal in January.
The company is now reviewing the MARSS order book and working through when revenue from its contracts can be recognised.
That includes the approx. $160 million contract with a Middle Eastern customer announced in May. The timing will partly depend on suppliers delivering the required equipment.
EOS said it expects to provide MARSS revenue guidance within the next 2 months.
The existing EOS business is already expected to deliver strong revenue growth this year. Any contribution from MARSS would sit on top of the $240 million to $270 million forecast released today.
