Defence and space systems manufacturer, Electro Optic Systems (ASX: EOS) has confirmed a period of massive growth driven by orders for its remotely operated weapons systems.
Canberra-based EOS released data to the market confirming it was set for 45 per cent per annum growth beyond 2020 and 2021 even if it received no new orders.
The company has an order backlog of more than $600 million and is on track to achieve sales of $230 million in the year to December 31 and an EBIT of $28 million.
EOS group CEO Ben Greene said: “The expected 180 per cent increase in profitability through 2019 is driven by improved plant utilisation in EOS Defence Systems, reduced losses from EOS Space Systems, and improved yield from previously expensed investments in research and developments.”
EOS operates a space research centre at the Mt Stromlo optical astronomy observatory in Canberra and makes laser systems to track and destroy orbiting space debris.
The company manufactures weapons systems that can be operated from the safety of inside armoured vehicles and weapons turrets at factories at Hume in Canberra, the United States and Abu Dhabi.
The US operation is developing directed energy weapons systems.
Greene said EOS was currently competing for tenders worth more than $2.4 billion and expected further contract awards.
Greene said: “Meanwhile the EOS defence sector is surging.”
As reported in @AuManufacturing news, EOS has denied its weapons systems are being used in the bloody conflict in the Yemen. This follows a $450 million contract won by the company in the UAE.
Picture: Electro Optic Systems
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