Electro Optic Systems reported a record first-half profit for 2026, driving shares up 12.8% after the company posted a 300% surge in revenue and positive underlying EBITDA.
Revenue for the six months ended June 30 reached AUD 169 million, nearly four times the prior period and the highest first-half figure in company history. Underlying EBITDA turned positive at AUD 21 million, while gross margin improved to 58%.
The company’s unconditional order book expanded to AUD 846 million from AUD 459 million at the end of 2025, supported by more than AUD 200 million in secured contracts for 2026 from the MARSS acquisition. Cash on hand stood at AUD 256 million, with total available liquidity reaching AUD 286 million before a AUD 30 million equity raise in July.
EOS maintained its full-year 2026 revenue guidance of AUD 360 million to AUD 400 million, including contributions from MARSS. The acquisition, finalized in May 2026, operates NiDAR AI-driven command and control systems with over 160 sensor integrations across facilities in France, the UK, and Saudi Arabia.
Defense demand, particularly for remote weapon systems, drove more than 80% of first-half revenue. The company highlighted surging orders amid drone warfare in Ukraine and regional tensions, noting traditional missile defense systems cost between $3 million and $4 million per engagement compared to cheaper drone countermeasures.
Key contracts included a Dutch export deal for high-energy laser weapons valued at €71 million and a potential German tender for up to 4,000 remote weapon systems, with a decision expected by the end of 2027. EOS operates production sites in Huntsville, Alabama, and a Middle East joint venture, with more than 60 installed bases protecting critical infrastructure.
Shares of EOS rose 12.79% to close at AUD 9.70, within a 52-week range of AUD 4.27 to AUD 12.58. The company’s market capitalization stands at AUD 1.13 billion with a P/E ratio of 7.2.
