Electro Optic Systems Holdings Ltd (ASX: EOS) shares are charging higher on Tuesday after the defence tech company released its half-year results.
At the time of writing, the EOS share price is up a sizeable 13.02% to $9.72.
That takes its gain over the past month to more than 40% and continues what has been a very strong run for shareholders.
With the stock pushing higher again today, it appears investors are clearly liking what they see.
So, can EOS shares keep climbing from here?
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Revenue jumps 283%
The numbers show just how quickly the business has grown over the past year.
EOS reported revenue from continuing operations of $168.8 million for the six months to 30 June, up 283% from $44.1 million a year earlier.
Defence Systems drove most of the increase, with revenue climbing to $163.7 million from $38.8 million. Space Systems was largely flat at $5.1 million, compared with $5.3 million last year.
The big improvement in revenue also flowed through to earnings. Underlying EBITDA came in at $21.6 million, a big turnaround from the $14.9 million loss recorded in the prior corresponding period.
However, EOS still reported a statutory net loss after tax of $33.7 million. This included a $34 million non-cash accounting adjustment linked to its MARSS acquisition.
Gross margin came in at 58%, down from 76% a year ago. The prior period benefited from a one-off $12 million reversal of late delivery penalties.
Order book keeps growing
There was more good news in the order book.
EOS finished June with an unconditional order book of around $846 million, up 84% from $459 million at the end of December. It is also almost 5 times the $170 million reported a year ago.
The company signed more than $300 million of new orders during the half, with most of its current order book expected to be delivered through the rest of 2026 and during 2027.
The recently acquired MARSS business is also off to a strong start.
MARSS has already secured around $200 million of orders in 2026, while giving EOS greater exposure to AI-enabled command and control systems and counter-drone tech.
EOS ended June with $256 million in unrestricted cash, leaving the company well funded as it works through its growing order book.
Can EOS shares keep climbing?
There's plenty going right at EOS at the moment.
Management expects FY26 revenue of between $360 million and $400 million, which would be a record result for the company.
Strong demand across the defence sector is also supporting the outlook, particularly for counter-drone systems, remote weapon systems, and high-energy laser weapons.
EOS is currently chasing several opportunities across these areas, while its order book provides better visibility for future revenue growth.
Of course, the share price has already run a long way. EOS shares are up more than 40% in just one month, so expectations are now much higher.
Still, with revenue growing very quickly, and the order book standing at $846 million, there could be more room to run.
