Electro Optic Systems (ASX: EOS)
Electro Optic Systems (ASX: EOS) delivered strong momentum in Q1 2025, driven by key customer wins, deliveries, and expanding manufacturing capabilities. During the quarter, EOS secured a US$5.3 million order for R150 counter-drone gimbals to integrate with the L3Harris VAMPIRE system and, in April, a follow-up US$3.1 million order for its R400 Remote Weapon Systems (RWS) from a US government customer. Deliveries included R600 RWS spares to Singapore, container-based RWS to a Western European buyer, and upgrades to RWS for an existing European client. The company set up a production line in Alabama for its new R800 heavy-calibre RWS, marking a significant step in commercialising this product.
Negotiations progressed across several major defence opportunities. EOS is in talks for a potential A$30 million R800 RWS sale to a North American customer and continues to compete for the A$90 million Land 400 Phase 3 opportunity in Australia. The company also reported successful use of its systems in Ukraine, including the destruction of a cruise missile using its R150 gimbal. Discussions with Ukraine and European donor nations continue regarding supply of RWS under conditional contracts. Two High Energy Laser Weapon opportunities are under negotiation, each valued at A$50–100 million.
EOS sharpened its marketing efforts through global trade show participation, unveiling the R500 RWS and forming strategic collaborations with Calidus and Milrem Robotics. It also demonstrated its flagship R400 and new R800 systems at Northrop Grumman’s Bushmaster event. EOS finalised the sale of EM Solutions for $158.6 million and repaid $61.1 million in borrowings. Through a $136 million order backlog and strong demand for drone and counter-drone tech, EOS continues to pursue growth amid evolving defence trends.
DroneShield Ltd (ASX: DRO)
DroneShield Ltd (ASX: DRO) achieved record performance in 1Q2025, with $33.5 million in revenue—more than double the same quarter in 2024. The company has already secured $94.4 million in committed purchase orders for 2025, exceeding last year’s full revenue of $57.5 million. Cash receipts hit $16.7 million, up 135% year-on-year, with most outstanding payments expected in the next quarter. SaaS revenue nearly tripled to $1.67 million as customers increasingly adopt DroneShield’s AI-powered software updates. A robust cash position of $197 million and no debt allows the company to invest in talent, R&D, and future acquisitions.
The company continues investing heavily in next-generation C-UxS (Counter-Unmanned Systems) technologies, particularly radiofrequency-based detection and defeat solutions. SaaS models are expanding, including the DroneSentry-C2 Enterprise platform, enhancing customer value and recurring revenue. New features like the 3D Planning Tool and UAS Incident Platform have been integrated into the customer portal. R&D expenses of $3.2 million were capitalised this quarter, supporting long-term innovation plans, while baseline fixed monthly operating costs are around $6.5 million.
DroneShield’s $1.6 billion sales pipeline reflects surging global demand. Europe, driven by rising defence budgets and the Ukraine war, accounts for 24% of revenue. Asia is close behind at 23%, led by regional security concerns near China. The US, with new C-UxS priorities, contributes 22%, while the Middle East (16%) and UK (10%) also show strong uptake. Latin America (4%) is expanding, and Australia is preparing for larger-scale programs. The company is also targeting non-military markets like airports and emergency drone response systems as growth frontiers.
(Source: Company Announcements)
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