Buy local: 3 Australian innovations to add to your watch list

Catapult Group International Ltd (ASX: CAT), Audinate Group Ltd (ASX: AD8), and Electro Optics Systems Holdings Ltd (ASX: EOS) all operate in different industries. But they share some very investible traits. They all service global markets in growing sectors, play in technically complex spaces with high barriers to entry, and stand to benefit from long-term trends. Here’s why they should be on your radar.

Why add Catapult to your watchlist?

• Leader in a high-growth industry
• Strong results year on year
• Profitability on the horizon

Since listing on the ASX in 2014, Catapult has steadily grown to become a global leader in elite sports performance and analytics. Across the world, sports are dominated by data, from coaching tactics and player health decisions to fan engagement. And Catapult’s wearable devices and analytics platform are at the heart of the trend, used by more than 3,200 professional teams globally.

While it is not yet posting a net profit after tax, all signs are pointing in the right direction. Its H1 FY26 update reported an Annualised Contract Value of $175 million (up 19% year on year) and an increased Contribution Margin, now sitting at 51.4%. This, combined with the expectations of continued growth in free cash flow, speak to a disciplined and scalable approach.

For me, Catapult has huge potential. And with recent share price falls, potentially driven by weak sentiment in the broader tech sector and investor impatience, it’s one to consider.  

Why add Audinate to your watchlist?

• Network effect advantage
• Long-term runway for growth
• Transition phase may create opportunity

Audinate is a breakout player in audiovisual networking, with its flagship Dante platform setting new industry benchmarks in audio and video distribution. The digitised platform replaces traditional analogue cabling with fast digital delivery. And it’s embedded in devices from over 700 manufacturers globally, giving Audinate a distinct network effect advantage.

2025 was a transitional year for Audinate, leading to an increase in costs and a revenue decline, with the company reporting a 32.2% revenue decrease year on year in FY25.

But for me, there may still be a significantly longer-term opportunity here, particularly at current prices. Given its deep sector penetration, it is well placed to build recurring, high-margin software revenue streams across its existing device ecosystem.

For me, it’s one to keep a close eye on.

Why add Electro Optics Systems to your watchlist?

• Defence spending tailwinds
• Strong contract momentum
• Explosive recent growth

EOS is an Australian leader in the design and manufacture of advanced defence and space technology systems.

The company reported losses in FY 2024. However, it has a strong balance sheet, reporting cash holdings of $106.9 million and no borrowings in its Q4 2025 activity report. In addition, it reported strong order book activity, with a deal pipeline of $459 million, representing a 238% increase since 31 December 2024.

In addition, it recently entered into an agreement to acquire European-based defence and technology company MARSS. Once approved, the acquisition will add further weight to its remote weapon systems, with advanced command and control capability.

As global tensions rise and governments look to modernise defence capabilities, EOS is well-positioned to continue its strong growth trajectory. So it’s no surprise that the share price is up over 700% in the last 12 months. Whether value remains for investors is yet to be seen. But with Bell Potter upgrading EPS last week, it’s definitely one to watch.

The post Buy local: 3 Australian innovations to add to your watch list appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison has no position in any of the stocks mentioned.The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Audinate Group, Catapult Sports, and Electro Optic Systems. The Motley Fool Australia has positions in and has recommended Audinate Group and Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.