Things just keep getting better for Electro Optic Systems Holdings Ltd (ASX: EOS).
The ASX defence stock is pushing higher again on Thursday after giving investors another reason to pay close attention.
At the time of writing, the EOS share price is up 7.88% to $10.54.
The latest rise follows a softer few weeks. EOS shares have slipped more than 11% over the past month, erasing some of the gains after a big run.
Even after the recent pullback, EOS has still been a massive winner. The stock is up more than 250% over the past year, so plenty of investors are still watching every move.
The defence orders keep coming
According to the release, EOS has secured new sales orders worth around $38 million.
The larger order is a US$16 million order, worth about $23 million, for a Naval 400 Remote Weapon System.
This will go to a new customer in the Middle East, which EOS described as a long-established shipbuilding business that is partly state-owned.
The system is set to be fitted to new offshore patrol vessels being built for a Middle Eastern navy.
The order includes the remote weapon system, cannon, training, and other supplies. EOS expects delivery to take place over the next 7 years in line with the ship delivery program.
The company said the order shows ongoing progress in winning contracts across the naval and defence markets.
MARSS adds more firepower
EOS also gave investors another contract win through MARSS, its command and control business.
MARSS has secured an 8-million-pound order, worth around $15 million, from an existing customer in the Middle East.
This contract covers a new counter-drone command and training centre for a national defence force.
The centre will include a command room built around MARSS' advanced AI-enabled counter-drone software.
It will act as the central command point for several MARSS installations already operating in the country.
Most of the work is expected to be delivered across 2026 and 2027.
EOS also noted that the contract includes the final novation following its acquisition of MARSS. That is expected to take place during 2026, subject to the usual processes and customer approvals.
Buyers return after the 11% slide
Yet again, EOS has given investors evidence that defence demand is turning into signed work.
And that's why buyers are coming back today, especially after the stock fell more than 11% over the past month.
Of course, EOS isn't exactly a sleepy stock. The share price has been very active after a massive run, with expectations now much higher.
The next thing to watch is whether EOS can keep landing contracts and deliver the work already on its books.
The post Up 275% in a year! Why this ASX defence stock refuses to cool down appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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