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DroneShield (ASX: DRO), Electro Optic Systems (ASX: EOS), and CSL Ltd (ASX: CSL)

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Question asked 31/07/2026

DroneShield (ASX: DRO), Electro Optic Systems (ASX: EOS), and CSL Ltd (ASX: CSL)

Dear MM team, what do you think of the recent announcements from the three companies above? I thought the announcements from DRO & EOS were positive, but their share prices reacted negatively. Any thoughts? Do you think CSL is on the mend? Thanks & regards

Answer

Hi Michael,

Defence: DroneShield (DRO) and Electro Optic Systems (EOS) are walking a very similar path at the moment and defence stocks have moved from hot to cold over the last few months with this week’s company specific news not enough to change this overarching negative sentiment:

DroneShield (DRO) – DRO’s latest update disappointed the market, with FY26 revenue guidance of $250–270mn well below consensus and weaker-than-expected gross margins, overshadowing strong revenue growth, new contract wins and product launches.
Electro Optic Systems (EOS) – EOS upgraded its FY26 revenue guidance to $280–300mn, securing more than $200mn in new counter-drone and remote weapon system contracts, plus it joined the ASX200 in June.

We have EOS and DRO in the too hard basket.

CSL Ltd (CSL) has found some love this month bouncing ~40% from its panic June low. This week CSL rallied after announcing progress on its Horizon 2 plasma manufacturing technology, which could produce significantly more immunoglobulin from the same amount of plasma, with clinical trials expected to begin in mid-2027.

The update boosted investor confidence, in the beaten-up healthcare goliath which still trades significantly below its long-term average valuation. The stock does increasing look to have found its low but we’re reticent to chase it above $125.

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DroneShield (ASX: DRO) v Electro Optic Systems (ASX: EOS)

LAST UPDATED 30/07/2026 11:56

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