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Highlights:

  • Electro Optic Systems secures a €31 million (A$53 million) order for its Slinger counter-drone system.
  • The contract comes from a European naval integrator, funded by a Western European government.
  • Drone Shield shares dip 4% in response to the announcement.

Shares of Electro Optic Systems Holdings Ltd (ASX: EOS) have surged in early Monday trading following the announcement of a significant defence contract. The company’s stock rose 14% to AU$1.48 during morning trade, standing out amid a broader decline in the ASX All Ordinaries index, which was down 0.35% at the same time.

Electro Optic Systems (EOS), a company operating in both defence and space sectors, announced that it has secured a major international order valued at €31 million (approximately A$53 million). The order relates to its Remote Weapon Systems (RWS), specifically the company’s "Slinger" Counter-Drone system. The buyer is a European naval systems integrator, and the deal is being funded by a Western European government.

The company noted that the Slinger systems included in this order are configured for naval deployment and will feature a range of weapon options, including cannons. The order also covers spares, training, and additional supporting items. Delivery of the systems is scheduled for 2025 and 2026.

The Slinger system, developed by EOS, is designed to counter the threat of unmanned aerial systems (UAS), more commonly referred to as drones. It integrates a radar system with a 30mm cannon and specialised ammunition. According to information available on the company’s website, the system includes proprietary stabilisation and targeting technology and is capable of engaging drones at distances beyond 800 metres.

The company says the system is particularly suited to urban settings, based on its weapon design and munition type. While EOS did not disclose the specific country involved in the purchase, the contract reportedly addresses urgent operational needs in Europe. The deal is EOS’s largest order to date for the Slinger system and represents its biggest naval-related RWS contract.

Electro Optic Systems’ Defence Systems business focuses on remote weapon systems, vehicle turrets, high-energy laser weapons, and integrated counter-drone and command systems. Its other division, Space Systems, specialises in using proprietary sensors and technologies to detect and track objects in space, supporting broader space domain awareness.

This contract follows extended sales efforts in what the company describes as high-growth markets, particularly in Europe. The announcement appears to have caught investors' attention, particularly as it positions the company within the ongoing global demand for counter-drone technologies.