EOS Order Book Surges to $459m Amid Contract Wins and Strategic Acquisition
Electro Optic Systems (EOS) has firmly rejected allegations from a recent Grizzly Research report, highlighting its strengthened financial position, significant contract wins, and strategic acquisition to bolster its defence technology portfolio.
- EOS disputes Grizzly Research’s short-seller allegations and questions motives
- Order book grows to $459 million by end 2025, driven by major defence contracts
- Conditional $80 million Korean high-energy laser contract remains under negotiation
- Acquisition of MARSS enhances EOS’s counter-drone software capabilities
- EOS strengthens balance sheet with no debt and $107 million cash at end 2025
Background to the Grizzly Report and EOS Response
Electro Optic Systems Holdings Limited (ASX – EOS) has publicly rejected a critical report issued by Grizzly Research LLC, a known short seller with a disclosed financial interest in EOS’s share price decline. The report, released on 6 February 2026, contained a series of allegations that EOS describes as misleading and manipulative. EOS has responded comprehensively, addressing the key points raised and reaffirming its strategic progress and compliance with regulatory obligations.
EOS also raised concerns about potential unlawful conduct by Grizzly and has engaged legal advisers in Australia and Germany to explore remedies. The company highlighted Grizzly’s history of legal challenges from other firms over allegedly false and damaging reports.
Strong Contract Wins and Order Book Growth
Since 2022, EOS has undergone a significant turnaround, strengthening its balance sheet and commercialising latent intellectual property. This transformation is reflected in the company’s order book, which expanded from $136 million at the end of 2024 to $459 million by December 2025. Key contract wins include –
- A $125 million High Energy Laser Weapon contract with the Netherlands Ministry of Defence, marking a milestone in directed energy weaponry.
- Remote Weapon Systems contracts totaling over $180 million, including the LAND 400-3 project for the Australian Defence Force and new orders in North America.
- Counter-drone system contracts, such as the Slinger Remote Weapon Systems for the Netherlands valued at $73 million across multiple orders.
EOS emphasises that these contracts are unconditional and underpin the recent appreciation in its share price.
Conditional Korean Contract and Goldrone Partnership
One focal point of the Grizzly Report was the conditional $80 million contract linked to Goldrone Inc, a smaller Korean entity acting as a local partner. EOS clarified that this contract remains conditional upon Goldrone fulfilling financial commitments, including an $18 million deposit and a Letter of Credit. EOS has been transparent about these conditions in compliance with ASX listing rules and continues to work towards converting this contract into an unconditional agreement.
While Goldrone’s financial capacity is modest, EOS assessed its potential to secure market access in Korea and is cautious in managing commercial risks associated with this partnership.
Strategic Acquisition of MARSS to Enhance Counter-Drone Capabilities
In line with its growth strategy, EOS is acquiring MARSS, a company specialising in intelligent command and control software for counter-drone systems. This acquisition aims to strengthen EOS’s software layer capabilities, which are increasingly critical in addressing complex drone swarm threats.
EOS’s due diligence, involving expert advisors across multiple countries, confirmed MARSS’s complementary fit and historical revenue of approximately €243 million from 2020 to 2025. EOS also highlighted ongoing sales opportunities exceeding €300 million, though it cautioned that defence contracts typically have long lead times and no guarantees.
Financial Position and Future Outlook
Following the divestment of its EM Solutions business in early 2025, EOS eliminated its debt and held $128 million in cash. At the end of 2025, cash reserves stood at $107 million with no drawn debt, supported by additional cash security deposits. EOS also secured a $100 million two-year secured loan facility to support growth initiatives, including the MARSS acquisition.
EOS’s new High Energy Laser Weapon manufacturing facility in Singapore, officially opened in February 2026, is scaled to produce up to 20 systems annually, positioning the company to meet anticipated demand in a rapidly growing market.
Navigating Market Dynamics and Regulatory Compliance
EOS highlighted the dynamic geopolitical environment driving increased global defence spending, with NATO members committing to substantial defence investments. The company reaffirmed its compliance with continuous disclosure obligations and addressed the recent ASIC investigation settlement, clarifying that no dishonesty was admitted.
While acknowledging risks inherent in the defence sector and investment in EOS, the company remains focused on transparency and strategic growth amid evolving market conditions.
Bottom Line?
EOS’s robust contract pipeline and strategic moves set the stage for a pivotal year, but the conditional Korean deal and legal battles with Grizzly remain key watchpoints.
Questions in the middle?
- Will the conditional Korean high-energy laser contract with Goldrone convert to an unconditional agreement?
- How will ongoing legal actions against Grizzly Research impact EOS’s share price and market perception?
- What is the timeline and expected impact of the MARSS acquisition on EOS’s counter-drone capabilities and revenues?
