Electro Optic Systems shares surge on record revenue and order book

Electro Optic Systems Holdings Ltd (EOS) shares surged on the Australian Securities Exchange following the release of its half-year financial results for the period ending June 30. The company reported a 283% increase in revenue from continuing operations, rising to $168.8 million from $44.1 million in the prior year.

Growth was primarily driven by the Defence Systems segment, which saw revenue climb to $163.7 million. The company reported underlying EBITDA of $21.6 million, a turnaround from a $14.9 million loss in the previous year. Despite this, EOS recorded a statutory net loss after tax of $33.7 million, partly due to a $34 million non-cash accounting adjustment related to its acquisition of MARSS Group.

The company’s unconditional order book reached a record $846 million, an 84% increase from December and nearly five times the level reported a year ago. Management attributed the performance to global demand for counter-unmanned aerial systems and remote weapon stations, noting that the MARSS acquisition has already contributed to new orders.