Dallas, Texas--(Newsfile Corp. - August 7, 2025) - Electro Optics Systems Holdings Ltd (ASX: EOS): Stonegate Capital Partners updates their coverage on Electro Optics Systems Holdings Ltd (ASX: EOS). In August of 2025 EOS announced that it has secured an order for a 100kW high power laser weapon system (HELW) for counter-drone warfare. This is a A$125.0M contract for a HELW that is to be delivered to a European NATO member, with revenues expected to be recognized over the next 3 years. Of note, this unit can take down 20 drones per minute, which is approximate 5 to 10 times more efficient than current kinetic kill options and does not have the constraint of cool down time. We also note that this contract is expected to be accretive to margins and cash flow positive in the back half. Going forward we expect EOS to secure a further contract for a HELW in 2026. Given the short training window needed to operate these weapons, and significant need for cheaper and effective counter-drone weapons we expect this vertical to become a very significant growth driver as EOS has reason to believe it is poised to capture 50% of the HELW TAM given the proprietary technology and first mover advantage it has.

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Key Takeaways:

• The Company secured a major A$125.0M contract for its HELW (High Energy Laser Weapon) system, expected to be accretive to margins and cash flow positive in 2H25.
• EOS recently launched its R500 remote weapon system which is planned to come with AI-based target identification and tracking as well as mesh network capabilities.
• As of the June trading update, the Company has a strong order backlog totaling AUD$170.0M, an increase from AUD$136.0M at year end.

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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Source: Stonegate, Inc.

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