Shares in Electro Optic Systems Holdings Ltd (ASX: EOS) are charging higher on Monday after the defence technology company delivered two significant updates to the market.
In late morning trade, the EOS share price is up 13.03% to $10.15. Earlier in the session, the stock climbed as high as $10.49.
The rally continues a powerful rebound. EOS shares are now up around 40% in the past week and have doubled from the $5.05 level reached just weeks ago after a short-seller report from Grizzly rattled sentiment.
Here is what the company announced.
Fresh orders add to revenue visibility
In its first release, EOS revealed it has secured new remote weapon system (RWS) orders valued at approximately $17 million.
The largest component is a US$12 million order for R400 RWS units from an established Middle Eastern government customer. Delivery of these systems and related support is expected across 2026 and 2027.
EOS also confirmed an initial R800 RWS order for India, valued at between $1 million and $2 million. The order includes engineering services and trial support.
Importantly, the Indian contract marks EOS’ first sale into India’s defence sector. The company noted that its prime contractor is competing to supply more than 130 systems. While there is no guarantee of follow-on work, management sees potential for additional orders following platform integration and trials in 2026 and 2027.
Alongside the contract wins, EOS provided a broader market update. It highlighted a recently announced US$35 billion defence industry co-operation agreement between the UAE and South Korea.
EOS has been engaged in discussions during 2025 and early 2026 to support UAE-based manufacturing of its RWS products for counter-drone requirements across the UAE and Korea.
The company also reiterated that ongoing military conflict in the Middle East may accelerate demand for advanced defence systems, including counter-drone capabilities and high-energy laser products such as its Apollo platform.
$100 million funding facility finalised
In a second announcement, EOS confirmed the finalisation of a $100 million 2-year secured term loan facility.
The facility has been provided by Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and ranks equally with EOS’ existing Export Finance Australia loan.
Key terms include a maturity date of 28 February 2028 and an interest rate that steps up over the life of the loan. The average all-in interest rate across the 24-month term is 14.75%.
EOS said the funding will support growth across the business, provide additional working capital, and help fund payments related to the acquisition of MARS, which was announced in January.
Management added that EOS had no borrowings prior to any drawdown under the new facility.
A volatile but improving share price
Today’s gains add to an already strong short-term performance.
EOS shares are up more than 40% over the past week and have delivered extraordinary gains over the past 12 months. The company has approximately 193 million shares on issue, giving it a market capitalisation of around $1.9 billion at current prices.
The rebound follows a sharp sell-off in recent weeks, triggered by a short-seller report from Grizzly questioning aspects of the business. While that report weighed heavily on sentiment at the time, the latest contract wins and funding update appear to have restored investor confidence.
The post EOS shares leap 13% as investor confidence returns appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras 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 Electro Optic Systems and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.