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- Providing nation-wide, counter-drone defence system
- Total contract value of $700 million
- Contract includes supply of third-party sensors
- Contract also includes initial supply of third-party effectors
Electro Optic Systems Holdings (ASX:EOS) has entered into an agreement with the government of a Middle Eastern Gulf state for the provision of a nation-wide, counter-drone defence system.
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The $700 million contract requires the rapid deployment of a cellular, nation-wide, counter-drone system with EOS’ NiDAR C2 at its core.
EOS is acting as the prime contractor and systems integrator, leveraging MARSS’ extensive product capability and engineering expertise.
EOS’ NiDAR counter-drone system, acquired as part of the recent MARSS acquisition, is an advanced AI-enabled command and control system (C2), designed specifically for counter- drone defence, embracing both airborne and coastal seaborne drone detection.
As required, systems fielded by MARSS in the Middle East are showing throughout the recent crisis to be an effective and economical counter-drone system. EOS believes that this is driving an acceleration of market demand and sales opportunities.
The contract includes supply of third-party sensors (electro-optical, radar and sonar) to detect threats at longer and medium ranges. These sensors feed information into central command centres using NiDAR to fuse data inputs and create intelligent, user-friendly and actionable threat assessments.
The contract also includes initial supply of third-party effectors, such as hard-kill interceptors and soft-kill jammers.
MD and CEO, Dr Andread Schwer, said EOS expects over 80% of revenue to be earned over the initial 12 to 24 months after the contract becomes unconditional. Approximately 20% of the Contract’s value relates to ongoing support over a four-year period.
“EOS believes that completing this work may lead to further sales opportunities in future, although there is no guarantee this will occur,” Dr Schwer told shareholders.
EOS carried out a capital raising in May 2026 to fund the upfront consideration of the MARSS acquisition, provide working capital to support contract ramp-up and development, and increase balance sheet flexibility to pursue growth opportunities and execute on strategic initiatives.
EOS was down 4.06% to $10.15. Mkt cap $2.345B.
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