US$16M counter-drone order secured from Middle Eastern armed forces
Electro Optic Systems Holdings Limited (ASX:EOS) has secured a new order (the “Contract”) for counter-drone defence systems with the Armed Forces of a Middle Eastern nation state, valued at US$16 million (approximately A$23 million).
The Contract is the first sale by EOS or MARSS to the country concerned. As is typical for an initial sale, the value of the contract is modest.
Set against the A$726 million combined order book disclosed in May, an entry-level order of this size is small, though the MARSS earnout is tied to new order intake.
When big ASX news breaks, our subscribers know first
What the contract covers
The Contract envisages systems to protect strategically important sites. It includes:
- A number of sensor systems
- Soft-kill effectors
- Command facilities, with the MARSS NiDAR C2 system at its core
The Contract is expected to be substantially delivered in the next 12 months.
EOS Managing Director and Chief Executive Officer Dr. Andreas Schwer commented on the order:
Dr. Andreas Schwer, CEO
“…it is pleasing to see the MARSS business continue to be recognised for its leading counter-drone capabilities and this contract represents further evidence of the demand for these types of systems in the region.”
Potential for follow-on work
In the past, initial contracts such as this have, in other countries, sometimes led to larger contracts in due course. EOS states there is no guarantee that this will occur.
For readers wanting to see how a large Middle Eastern counter-drone relationship can scale, our detailed coverage of the Kuwait counter-drone contract examines the £370m nation-wide deal and what was and was not disclosed about its timing.
Don’t Miss the Next Defence Contract Winner
Get FREE breaking ASX news delivered to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ investors already using Big News Blast to stay ahead of the market. Click the “Free Alerts” button to receive industrials and defence announcements the moment they break.