Australia's Electro Optic Systems strikes Gulf counter-drone contract, shares hit record high (updated)

Electro Optic Systems Holdings

09/10/2026 01:38

Updates with details and share moves
Oct 9 (Reuters) - Australia's Electro Optic Systems (EOS) said on Friday it had signed a A$700 million ($486.92 million) contract with the government of a Gulf Cooperation Council member state to supply a nationwide counter-drone defence system.
The deal highlights demand for counter-drone technology, as conflicts in the Middle East exposed the challenges of defending against low-cost drone attacks with traditional missile-based air defence systems.

Here are a few details:
The contract centers on EOS' AI-enabled NiDAR command-and-control platform, and will integrate radar, electro-optical and sonar sensors with drone interception and jamming systems to provide nationwide coverage
The contract also includes supply of third-party sensors to detect threats at longer and medium ranges
EOS, however, said the contract remains subject to several conditions before work can begin, such as obtaining export licences for system components within two months of receiving the necessary documentation from its customer
Earlier this year, Reuters exclusively reported that the defence technology manufacturer was "very likely" to shift its headquarters and stock market listing from Australia to Europe within a year
Shares of the Australian laser maker rose as much as 22% to hit a record high of A$12.910
 
($1 = 1.4376 Australian dollars)

 (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Diti Pujara and Sherry Jacob-Phillips)
 ((Rajasik.Mukherjee@thomsonreuters.com;))