The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is up 5% after announcing a strong June 2026 update.
EOS has two divisions – defence systems and space systems. Its defence systems include laser weapons and anti-drone capabilities.
June 2026 quarter
The company announced that for the first half of 2026, it achieved revenue of $169 million, representing a 284% increase year on year.
It said that ongoing conflicts and regional tensions are supporting demand for EOS products. Its order book at 30 June 2026 was $846 million, representing an 84% increase from 31 December 2025.
As a result of its strong performance, the company upgraded its revenue guidance for FY26 for the base business (meaning excluding MARSS) to between $280 million to $300 million, up from previous guidance of between $240 million to $270 million.
Since the previous revenue outlook update announced on 15 June 2026, the business has conducted detailed work to optimise plans for production and delivery, and reassessed results achieved to date and the current order book.
Pleasingly, the company also expects underlying EBITDA (EBITDA explained) to be positive in the first half of 2026.
Customer wins
The company also highlighted a number of customer orders that it has won recently.
For example, EOS announced on 19 June 2026 a $175 million order for its Slinger counter-drone remote weapon system (RWS) to be supplied to a UAE provider in Abu Dhabi.
On 2 July 2026, EOS announced a $23 million order for its naval R400 RWS to be supplied to a new customer based in the Middle East.
During the quarter, EOS’ US business secured orders totalling $7 million for integration into a counter-drone weapon system. The customer is a large, established US defence contractor – EOS said this order underscores sustained customer confidence in its combat proven counter-drone solutions.
EOS was also awarded a $6 million contract Australia’s advanced strategic accelerator program, which is focused on countering small uncrewed aerial system capability.
During the quarter, EOS received additional R800 RWS orders from the Middle East and South Asia customers.
The recently acquired MARSS business has also performed strongly, with a number of orders. Additionally, BAE Systems has selected EOS’ AI-enabled command and control system, NiDAR to be the nerve centre for its generation counter-drone systems, BATS.
Final thoughts on the EOS share price
The EOS share price has risen more than 130% in the past year. That’s a big rise and the revenue has soared too.
Is this a good time to invest? It could really depend on how long-term this elevated demand is. Is it a new normal? Or is it going to fall back once some conflicts are resolved.
It’s an ASX success story, but there could be better ASX growth shares where there isn’t as much success baked in.
