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Electro Optic Systems (EOS) v DroneShield (DRO)

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Question asked 24/05/2025

Electro Optic Systems (EOS) v DroneShield (DRO)

Hi Market Matters Team Can I have your view on EOS (Electro Optic Systems). They announced an order from a European naval systems integration business worth A$53M funded by a Western European government. Have gone up about 22% in 4 days. How do you see this impacting DroneShield? Would you consider EOS as an alternative to Droneshield?

Answer

Hi Deb,

This is the second question on DRO/defence today hence please excuse our brevity. EOS has indeed enjoyed a nice week but its still trading significantly below its 2024 high. To briefly compare the 2 companies:

Electro Optic Systems (EOS) – EOS is renowned for its Remote Weapon Systems (RWS), such as the R400, R500, and R800 series. These systems provide lightweight, high-precision firepower suitable for land and maritime platforms. This $300mn Sydney-based company also develops counter-drone technologies like the “Slinger” system.
DroneShield (DRO) – A $1,07bn business specialising in drone technology – we looked at DRO in April.

We see no impact from this order to DRO but from a risk/reward perspective, EOS looks exciting as traders start to extrapolate “what ifs” in this hot sector.

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Electro Optic Systems Ltd (EOS)

LAST UPDATED 23/05/2025 13:40

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