Laser Focus: EOS lands $125M NATO contract for drone defence

Ausbiz Small Caps Interview with Dr Andreas Schwer, CEO, Electro Optic Systems

Key points:

• Electro Optic Systems (ASX:EOS) secures $125 million laser defence system contract with NATO nation
• System capable of destroying up to 20 drones per minute and targeting multiple threat types
• Strong pipeline of future orders anticipated, particularly in Europe
• EOS holds substantial cash reserves and has ambitious expansion plans in remote weapon stations

Electro Optic Systems (ASX:EOS) has achieved a significant milestone, securing a $125 million order from a NATO nation for what CEO Andreas Schwer describes as the world’s first 100-kilowatt high-powered laser defence system. Schwer states this system provides an unprecedented capability to counter drone threats, capable of targeting classes one, two, and possibly three, as well as other objects like mortar and artillery shells. According to Schwer, the laser can neutralise up to 20 drones a minute, representing a major advance in cost-effective battlefield defence technology.

Schwer highlights this contract as the first operational deployment of such a high-powered laser globally, moving beyond prototypes to real-world use. Revenue from the deal will be realised over 2.5 years, with significant early down payments ensuring immediate cash flow. Schwer points to a strong sales pipeline, anticipating additional orders from clients considering acquisition of tens of similar laser systems. The company continues to lead in remote weapon stations and expects further contract announcements, reinforcing its ambition to become the top supplier in this field, particularly in Europe.

Schwer identifies only one other non-US competitor in the high-energy laser market, stating EOS’ ITAR-free product allows flexible exports to Western nations. The company’s financial position has been bolstered by substantial cash reserves and secured deposits.

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