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    Why Electro Optic Systems Holdings (ASX:EOS) Is Up 53.7% After Securing US$80m Korean Laser Deal

    Simply Wall St·12/19/2025 05:17:44
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    • Electro Optic Systems Holdings recently announced a binding conditional agreement with a South Korean customer worth about US$80 million (around A$120 million) to supply a 100kW high-energy laser weapon system, with delivery scheduled by the end of 2027 and several regulatory and technical conditions still to be satisfied.
    • The deal includes forming a long-term joint venture in South Korea and licensing EOS’s laser technology, creating a local manufacturing foothold and potential recurring revenue streams tied to the country’s growing demand for counter-drone defence solutions.
    • We’ll now examine how this South Korean joint venture and high-energy laser export contract may reshape Electro Optic Systems Holdings’ investment narrative.

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    Electro Optic Systems Holdings Investment Narrative Recap

    To own Electro Optic Systems, you need to believe its high energy laser and counter drone technology can translate growing geopolitical interest into profitable, repeat business. The South Korean US$80 million (about A$120 million) contract looks like the key near term catalyst, but it still carries execution and regulatory risks at a time when the company remains unprofitable and the share price has already moved sharply.

    Among recent announcements, the upgrade of EOS into the S&P/ASX Small Ordinaries and S&P/ASX 300 indices in September 2025 feels particularly relevant. Index inclusion often brings higher liquidity and a broader investor base, which can amplify the share price impact, for better or worse, as the company works through its growing backlog of high energy laser export contracts.

    Yet despite the excitement around new orders, investors should be aware that the biggest risk still lies in...

    Read the full narrative on Electro Optic Systems Holdings (it's free!)

    Electro Optic Systems Holdings' narrative projects A$253.0 million revenue and A$25.2 million earnings by 2028. This requires 30.0% yearly revenue growth and a A$93.2 million earnings increase from A$-68.0 million today.

    Uncover how Electro Optic Systems Holdings' forecasts yield a A$7.72 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    ASX:EOS 1-Year Stock Price Chart
    ASX:EOS 1-Year Stock Price Chart

    Eight members of the Simply Wall St Community value EOS between A$3.54 and A$13.79, highlighting very different expectations for the business. Set against the conditional South Korean laser contract, this spread underlines why it can be useful to compare several independent views before deciding how EOS might fit in your portfolio.

    Explore 8 other fair value estimates on Electro Optic Systems Holdings - why the stock might be worth as much as 90% more than the current price!

    Build Your Own Electro Optic Systems Holdings Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.