EOS Secures $125M NATO Order for World’s First Export-Grade 100kW Laser Weapon

Key Highlights:

• EOS signs €71.4 million (~A$125 million) contract with a NATO European country
• World’s first export order for a 100kW-class laser counter-drone system
• Contract includes manufacturing, spares, training, and documentation through 2028
• Order supports EOS’ position as a global leader in counter-drone defence
  
   

Electro Optic Systems Holdings Ltd (ASX: EOS) has announced a game-changing international order worth approximately A$125 million, marking a historic milestone for Australia’s defence technology exports. The deal involves the delivery of a 100-kilowatt high-power laser weapon system designed for counter-drone operations—a first-of-its-kind export in this class globally.

The customer, a European NATO member state, placed the order for EOS’ new directed-energy weapon after rigorous field trials and live-fire testing, underscoring the growing demand for advanced, scalable solutions to combat the evolving threat of drone swarms.

A New Era of Drone Defence

EOS has been steadily developing this next-generation system over the past three years. The laser builds on the company’s existing suite of counter-drone kinetic technologies and takes it a step further, offering a non-kinetic solution that reduces cost per engagement while enhancing precision and repeatability.

The system isn’t just about firepower—it’s equipped with integrated radar, threat detection, target acquisition, beam-locking, and AI-driven algorithms, offering a smart and autonomous response to increasingly agile drone threats.

“This contract represents a significant validation of our laser defence capabilities and our team’s engineering excellence,” said Andreas Schwer, CEO of EOS. “It also reflects the growing demand for scalable, high-performance counter-UAS systems that are economical and operationally reliable.”

Strategic Significance

The order includes the manufacture, delivery, spare parts, operator training, and technical documentation, with fulfilment slated for 2025 through 2028. Production will take place at EOS’ dedicated facility in Singapore, a strategic choice that underlines the company’s commitment to global operations and export efficiency.

Importantly, EOS chose not to disclose the specific buyer, citing confidentiality and the absence of material impact on its share value based on customer identity.

While the company already leads in kinetic-based counter-UAS systems, this deal highlights EOS’ readiness to compete in the directed-energy weapons (DEW) segment—long seen as the future of battlefield defence, especially as drone threats evolve in scale, speed, and sophistication.

Industry Impact and Market Response

EOS’ announcement comes at a time when the global defence sector is rapidly pivoting towards laser-based systems. These weapons offer significant advantages:

• Lower operational costs
• Unlimited ‘ammunition’ as long as power is available
• Precise targeting with reduced collateral damage
  
   

This strategic evolution comes as major defence contractors worldwide invest heavily in similar programs. EOS now enters a niche but fast-growing arena dominated by U.S. and Israeli firms, giving Australia a credible place at the table.

From Canberra to the Battlefield

Electro Optic Systems has long been a staple of Australia’s sovereign defence innovation. With operations spanning Defence Systems (including C4ISR, remote weapons, turrets, and now lasers) and Space Systems (tracking space debris and satellites), EOS is proving itself to be a multi-domain powerhouse.

This NATO deal is also an endorsement of Australia’s capability to deliver advanced military technology at scale, aligning with broader defence export goals set by the Australian Government.

Investor Sentiment

As of 11:58 am AEST on Tuesday, August 5, 2025, EOS shares were trading at $3.93, up 33.22% on volume of 7,085,140 shares, reflecting strong investor enthusiasm.

The company’s market cap now sits at $758.30 million, with a 52-week trading range of $0.995 to $4.04. Its 1-year return is an impressive 151.92%, highlighting renewed confidence in EOS’ growth strategy.

This landmark deal reaffirms EOS’ ability to deliver cutting-edge solutions in a competitive and highly regulated sector. As laser weapons move from science fiction to frontline utility, Electro Optic Systems stands poised to lead the charge—both in technological innovation and shareholder value.