Electro Optic Systems Shares Bounce 8% After Brutal Week as Defense Tech Stocks Recover on ASX Friday
The Australian defence technology company's recovery came without new market-sensitive news as the broader market also rose.
SYDNEY — Shares of Electro Optic Systems jumped more than 8% on Friday, recovering some ground after a brutal week for the Australian defense technology company.
EOS shares were up 72 Australian cents, or 8.43%, at 9.26 dollars in afternoon trading, near the session high of 9.29 dollars. The stock traded as low as 8.71 dollars earlier in the day. The company's market value rose to about 2.1 billion dollars.
Rebound after steep losses
The gain follows a sharp sell-off. EOS shares fell 8.1% on Thursday to close at 8.54 dollars and had fallen about 24% over the past week, making them one of the worst performers on the ASX 200.
The company did not release any market-sensitive news on Friday. The rebound came as the broader Australian market rose about 1% following a strong session on Wall Street.
Defense technology stocks have been volatile in recent weeks, with peers such as DroneShield and Codan also experiencing sharp swings.
Rapid growth
EOS specializes in remote weapon systems, counter-drone technology and high-energy laser weapons. Demand for its products has surged amid conflicts in Europe and the Middle East.
In the first half of 2026, the company's revenue rose 283% to 168.8 million dollars, driven by its defense systems business. The company reported a net loss before tax of 28.9 million dollars, largely due to a non-cash charge related to its acquisition of MARSS, a counter-drone technology firm.
EOS has provided revenue guidance of 360 million to 400 million dollars for 2026 and held about 256 million dollars in cash at the end of June.
European expansion
The company has been examining opening a corporate office in Europe to take advantage of growing defense spending there. EOS has said no decision has been made to move its headquarters from Australia.
Strong year despite volatility
Despite recent losses, EOS shares are up about 56% over the past year.
What's next
Investors will look for new contract announcements and updates on revenue guidance, including expected guidance for the MARSS business, as the company works to convert its strong order book into revenue.