Electro Optic Systems (EOS) Investor Presentation summary

Leadership and strategic direction

• New executive team with deep defence, manufacturing, and space expertise appointed in 2022–2023 to drive turnaround.

• Comprehensive restructuring reduced headcount by ~100 and divested non-core businesses.

• Strategic focus shifted to high-growth areas: counter-drone, high energy laser weapons, and space control.

• Strengthened balance sheet with debt repayment and $128m cash at Jan 2025.

• Disciplined capital allocation and ongoing portfolio optimization underpin growth.

Market conditions and growth drivers

• Geopolitical tensions and rapid tech evolution are driving global defence spending.

• Demand for counter-drone and space control solutions is rising due to modern warfare trends.

• Defence expenditure as a share of GDP is increasing across NATO and allied nations.

• Ongoing conflicts and new threats are accelerating adoption of advanced defence technologies.

• Market for high energy laser weapons and space militarization is projected to grow significantly.

Financial performance and balance sheet

• 2024 revenue reached $258.7m, up 2% year-on-year, with gross margin at 46%.

• Underlying EBITDA from total operations was $39.4m, up 17% from prior year.

• Net profit after tax (NPAT) was $13.0m, with discontinued operations contributing $15.4m.

• All borrowings repaid by Jan 2025; cash balance of $128m plus $48m in security deposits.

• Divestment of EM Solutions for $158m further strengthened financial position.