Electro Optic Systems Holdings Limited (ASX:EOS) presented an optimistic third-quarter update for 2024, showcasing recent contract wins, strong cash inflow, and significant advancements in manufacturing.
Based in Canberra, EOS operates primarily in defence, space, and communications, focusing on high-tech solutions for government and military clients globally. The company is known for its advanced weapon systems, counter-drone technology, satellite laser tracking, and communication solutions.
EOS’s defence division reported robust production and delivery of its Remote Weapon Systems (RWS) for customers in the Middle East, including vehicle-mounted systems. The Slinger Counter Drone system, a recent addition to EOS’s defence portfolio, has been delivered to a major German client. The system incorporates a 30mm cannon equipped with specialised ammunition and a radar, allowing it to track and neutralise drone threats at distances of over 800m. Additionally, a new order from a Middle Eastern customer reinforces EOS’s presence in the global defence market. EOS is also actively pursuing a substantial contract for the Australian Land 400 Phase 3 project, potentially worth $100m, and is in negotiations for an R800 RWS contract with a North American client, estimated at $30m.
In the space sector, EOS has secured a $9m contract with a domestic customer, focusing on satellite laser tracking. This technology, one of EOS’s cornerstone products, enables accurate tracking of satellites and debris, essential for space traffic management. EOS’s space division also oversees EM Solutions, which recently added $15m in European orders for its satellite communication solutions.
Financially, EOS reported an operating cash inflow of $10.5m, attributed to customer receipts totalling $76.5m. The company’s cash position grew to $55m, complemented by $64.2m in bank deposits securing contract guarantees. EOS also reduced its contract asset balance by $10.6m, marking invoicing progress on Middle Eastern defence contracts.
Shares are trading 5.42% higher at $1.46.
