Will Electro Optic Systems Holdings be deriving advantage from SpaceX IPO?
Written by
Varun Ratra
As investor focus turns to the high growth space economy due to the SpaceX IPO, Electro Optic Systems Holdings Limited could be well positioned to benefit because its Space Systems division may experience stronger demand as SpaceX expands its Starlink constellation toward tens of thousands of satellites.
Electro Optic Systems Holdings Limited (ASX: EOS)
Electro Optic Systems Holdings Limited Most investors recognise EOS as a defence technology company and the stock has risen approximately 480% over the past twelve months and much of this growth has been linked to counter-drone technologies and directed energy systems.
The market capitalisation is approximately $2.44 billion at the time of writing and it has surged almost 24% in the past one month.
EOS also has a dedicated Space Systems division and this business provides advanced laser tracking along with satellite communications and space situational awareness technologies to customers around the world.
The connection to SpaceX is noteworthy as Starlink currently has more than 10,300 satellites in orbit but it has also submitted applications that could eventually increase that figure to as many as 42,000 satellites.
The division could become more important due to the growth of global satellite industry and Management also noted that between 60% and 80% of the company's $726 million order book is expected to convert into revenue during 2026 and 2027.
Every new satellite launched will create greater demand for the tracking communications and monitoring infrastructure supplied by EOS through its Space Systems division. This increased activity across the space industry could provide indirect benefits to EOS over the long term.
EOS also faces risks specific to its business as defence contract activity can vary from one year to the next but it had a very good 2025 and has further established its presence in the counter-drone and space systems markets.
The company reported revenue from continuing operations of $128.5 million which was 27% lower than the previous year as several major defence contracts reached completion. Gross margin increased to 63% from 48% which highlights improved operational efficiency.
Its financial position improved as unrestricted cash rose from $65.8 million to $106.9 million while all remaining debt was repaid.
EOS also secured an additional undrawn $100 million term loan facility which provides support for future growth initiatives.
(Source: Company Announcements)
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