Update on trading conditions and revenue guidance

Electro Optic Systems Holdings Limited (“EOS” or the “Company”) (ASX:EOS), is pleased to
provide the following updates.

MARKET UPDATE
Ongoing conflicts in the Middle East and Europe have ensured that enquiry levels for EOS
products remain at elevated levels. This includes enquiries and customer discussions relating
to:

• Remote Weapon Systems (“RWS”),
• High Energy Laser Weapons,
• MARSS NiDAR Command and Control Systems, and
• Capability provided by EOS Space Systems.

MARSS UPDATE
EOS will this week conduct a market launch of the combined EOS / MARSS business at the
Eurosatory Defence and Security Exhibition in Paris. This will include extensive marketing
activities and work with customers, suppliers and other stakeholders.

Since announcing the completion of the acquisition of MARSS on 21 May 2026, the MARSS
headquarters has been relocated to Nice in France. EOS intends to use this new operating base
to extend operations in Europe over the next three years.

Since acquiring this business, EOS has supported MARSS to (1) secure new sales orders, and
(2) position MARSS to maximise the delivery of products and services to customers during
2026 and 2027.

The MARSS order book includes significant customer projects to set up new counter-drone
systems. These systems comprise MARSS NiDAR Command and Control (“C2”) systems and
supporting sensors (including radar) and effectors (including counter-drone missile systems).

The order book includes the new £85m (A$160m) contract with a Middle Eastern customer, as
previously announced on 18 May 2026. At this time, the timing of delivery of these systems,
and hence revenue recognition, depends on the delivery to MARSS of equipment from suppliers.
Management are working closely with suppliers as this continues to evolve due to changes in
global supply chains and delivery schedules are expected to continue evolving.

In addition, EOS is conducting a detailed review of the MARSS order book (including the above
new contract) to assess the appropriate revenue recognition accounting treatment under AIFRS
and EOS’ group accounting policies. As a result, EOS continues to assess the timing of revenue
recognition of MARSS contracts and hence determine the level of 2026 revenue outlook for the
newly acquired MARSS business. It is anticipated that this may become clearer over the next
approximately two months.

NEW ORDER
EOS has recently secured an order with L3Harris in the United States totalling US$5m (approx.
A$7m) for integration into a counter-drone weapon system. The product will be manufactured
in Australia and the order is expected to be fulfilled during 2026.

REVENUE OUTLOOK
As previously announced on 18 May 2026, the combined EOS and MARSS business has an
order book of unconditional secured contracts of $726m. As announced, approximately 60%
to 80% of that order book is expected to convert to revenue during 2026 and 2027.

As noted above, at this time management continues to assess the timing of revenue recognition
of MARSS contracts and hence determine the 2026 revenue outlook for the MARSS business.

EOS has evaluated the 2026 revenue outlook for the base EOS business (excluding the newly
acquired MARSS business) which is based on the order book of unconditional secured
contracts and does not include any potential future new customer orders. The revenue outlook
assumes that there is no significant deterioration in global supply chains or other factors that
could impact EOS production activity, delivery to customers or other factors that impact
revenue recognition by EOS.

For the EOS base business (excluding the newly acquired MARSS business), EOS expects 2026
full year revenue to be in the range $240m to $270m.

EOS will provide a further update to the market once work to assess the MARSS 2026 full year
revenue outlook is completed. It is anticipated that this may be within the next approximately
two months.

This announcement has been authorised for release to the ASX by the Board of Directors of the
Company.