Australia’s defence manufacturing sector is set to play a role in a new counter-drone systems contract after Electro Optic Systems (EOS) announced it had secured a US$124 million (approximately A$175 million) order from UAE-based Generation 5 Holding L.L.C (Gen5).
According to EOS, the order covers its Slinger Counter-Drone Remote Weapon System, including cannons, spare parts, training and related supplies.
The company said the systems are expected to be manufactured in Australia and the United Arab Emirates and delivered during 2027 and 2028, subject to export approvals and other customary conditions.
EOS said it understands the systems are intended to strengthen defence capabilities amid ongoing regional tensions in the Middle East.
The announcement follows a commitment disclosed in May from Gen5 to subscribe for A$30 million in EOS shares as part of the company’s strategic placement, subject to shareholder approval at an extraordinary general meeting scheduled for 26 June.
Separately, EOS and Gen5 have entered into a binding but conditional joint venture shareholders agreement to establish a UAE-based venture focused on the development, manufacturing and global distribution of high-energy laser weapon systems and selected EOS remote weapon systems.
Under the proposed arrangement, the joint venture would develop a next-generation 200-300kW high-energy laser weapon, manufacture and distribute EOS’ existing 100-150kW laser systems in the UAE and certain Middle East and North Africa markets, and manufacture and distribute EOS’ R400, R500 and R800 remote weapon systems in the region.
EOS said the venture is intended to build advanced manufacturing capability in the UAE while supporting the development and commercialisation of its defence technologies.
The proposed joint venture is expected to be headquartered in Abu Dhabi and structured as a 50-50 partnership between EOS and Gen5, subject to regulatory approvals and the completion of several conditions, including final board approvals and agreements covering intellectual property rights.
As part of the agreement, Gen5 would contribute US$40 million in equity, while EOS would contribute intellectual property related to its laser and remote weapon system technologies.
The companies have also agreed to use reasonable endeavours to secure future contracts for the joint venture, including a potential minimum US$250 million development order for the next-generation laser weapon family and a separate minimum US$290 million contract covering several 100kW laser systems. EOS noted there is no guarantee that these orders will be secured.
EOS said work on establishing the joint venture and meeting the required conditions is expected to continue throughout 2026.
The company added that, if the venture proceeds as planned, it could begin contributing to EOS’ financial results from 2027 or 2028, although there is no guarantee that the venture will be established or receive future orders.
The content of this article is based on information supplied by Electro Optic Systems Holdings Ltd (EOS). For more information, please refer to the official company announcement and communications from DroneShield. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
