Sydney, June 18, 2026, 08:02 AEST
- Electro Optic Systems ended Wednesday at A$8.91, up 1.95%. Shares hit A$9.52 at the session high. The S&P/ASX 200 gained 0.54% to close at 8,966.30.
- EOS said its command-and-control arm MARSS got picked as the C2 supplier for BAE Systems’ Anti Threat System, which is a new counter-drone system.
- The company is guiding for 2026 base-business revenue between A$240 million and A$270 million, not counting MARSS, as it works out when MARSS revenue can be recognized.
Electro Optic Systems Holdings is set to start Thursday’s ASX session as traders consider a software contract tied to BAE Systems, but the share price has already seen sharp swings this month. The ASX cash market was still in pre-open, with the exchange saying normal trading is from 09:59:45 through 16:00 Sydney time.
Defence and space tech firm EOS finished at A$8.91 on Wednesday, gaining 17 cents. Shares hit A$9.52 earlier in the day. EOS outperformed the S&P/ASX 200, which closed 48.60 points higher at 8,966.30. Still, EOS is down 27.3% from its 52-week high of A$12.26 from June 2.
MARSS moved first. EOS said MARSS would supply the command-and-control for BAE Systems’ Anti Threat System, known as BATS, which targets uncrewed aircraft—basically, it’s an anti-drone system. The C2 part refers to the software that connects sensors, weapons, and people running the system.
MARSS’ NiDAR platform is set to act as the “nerve centre” for BATS, according to EOS. The platform will tie together sensors and effectors for BAE’s counter-drone systems. The deal was signed during the Eurosatory defence show in Paris. The agreement includes software licensing and technical support for upcoming demonstrations and fielding.
Proving its MARSS buy can deliver revenue is a key test for EOS. The company said Monday that EOS and MARSS together held A$726 million in secured contracts with no conditions. EOS expects 60% to 80% of those deals to show up as revenue in 2026 and 2027.
EOS said conflicts in the Middle East and Europe are still driving demand for its remote weapon systems, high-energy laser weapons, MARSS NiDAR command-and-control systems, and EOS Space Systems. For its base business, taking out MARSS, the company put its 2026 revenue forecast between A$240 million and A$270 million.
Europe is now the focus for the sales pitch. EOS said this week it will put over 10 million euros into setting up France as its European center for AI-powered counter-drone C2 systems. The operation, anchored at MARSS’s headquarters in Nice, is set to deliver as many as 150 jobs in three years. CEO Andreas Schwer said the new hub would mean partner nations could “own, produce, and sustain” the systems on their terms. Business Wire
MARSS isn’t simply a bolt-on for EOS. After the deal wrapped up in May, Schwer called it “a significant addition to EOS’ capability.” MARSS chief Johannes Pinl said the group is still focused on protecting critical sites and pushing NiDAR.
The number of players in the market keeps growing. At Eurosatory, Australia’s DroneShield said it signed an MOU with Defenture to go after mobile counter-UAS deals. Germany’s Rheinmetall also showed off its Skyspotter drone-detection system at the event, aiming it at transport hubs and critical infrastructure.
The upside case is still stuck on timing. EOS said MARSS revenue recognition hinges on supplier equipment, delivery schedules and how Australian financial rules treat the accounts. The company said it might know more in around two months. EOS said the BAE partnership could mean new customer contracts, but stopped short of saying any had landed. If the current order book slips or follow-on deals disappoint, the recent rebound in the shares could get hit fast.
