Electro Optic Systems reveals Kuwait in $700M deal

• Electro Optic Systems confirmed Kuwait as the buyer for its largest counter-drone defence system contract.
• Shares fell 4.25% following volatile trading despite the contract confirmation.
• International defence demand continues driving multi-hundred-million-dollar military technology supply deals.

Electro Optic Systems (ASX:EOS) confirmed Kuwait as the buyer behind its nationwide counter-drone contract worth $700 million.

The revelation followed a previous announcement of an unnamed Middle Eastern client that initially sent the stock up 9% before a sharp reversal.

The agreement requires a cash security deposit of £40.3 million to back a performance bond guarantee.

The company stated that the defence transaction is expected to deliver nationwide protective coverage against unmanned aerial vehicles.

Following the announcement, the Electro Optic Systems share price was down at $10.26.

The contract represents the largest single counter-drone defence equipment agreement in the company's operational history.

The business continues expanding its remote weapon systems across international military markets.