Sydney, Feb 17, 2026, 17:59 AEDT — The market is now shut.
- Electro Optic Systems closed up 13.7%, finishing the day at A$7.16.
- EOS pointed to its fresh high-energy laser hub in Singapore, linking it with ongoing projects in Korea and the Netherlands.
- Audited results are expected by Feb. 19. Traders remain cautious—memories of this month’s short-seller blow still fresh.
Shares of Electro Optic Systems Holdings Ltd jumped 13.7% Tuesday, closing at A$7.16. Still, the stock has lost roughly a third of its value in 2026 and trades far beneath its January high of A$11.20. (Intelligent Investor)
That jump reflects investors pressing for hard evidence—actual contract fulfillment and cash flow—rather than simply reacting to headlines. Audited results are expected later this week.
EOS on Monday announced it had officially launched its high-energy laser weapon facility in Singapore, with the opening held on Feb. 6. The plant is now a base for building, integrating, and testing 100-kilowatt-class systems. According to the company, the new site backs both its export order for the Netherlands and a binding, conditional agreement with South Korea. A Royal Netherlands Army brigadier general described high-energy lasers as an “indispensable new category of weapon systems.” CEO Andreas Schwer called the Singapore expansion a “blueprint” for future local builds, adding that the Korean contract “will be produced out of this facility in Singapore.” (Electro Optic Systems)
EOS has told investors to look for audited results on or around Thursday, Feb. 19. Back in its January quarterly update, the company lifted guidance, now tipping full-year revenue just above the earlier A$115 million to A$125 million range for its existing contracts. That same update also noted that ASIC had asked the Federal Court for declarations and a A$4 million civil penalty, following a previous disclosure investigation. (Company Announcements)
Shares have swung sharply since U.S. short seller Grizzly Research challenged an earlier $80 million contract announcement with a South Korean client. EOS hit back, calling the allegations “misleading, manipulative and pejorative,” and said it’s consulting lawyers to see if the report breaks corporate law in Australia or Germany. “Today’s reversal looks less like a classic short squeeze and more like the market giving management the benefit of the doubt,” said Billy Leung, investment strategist at Global X ETFs Australia. (Reuters)
Short sellers try to profit by borrowing shares and immediately selling, hoping to buy them back at a lower price. If prices suddenly spike, those holding short positions may scramble to buy shares and close out, which can push the stock even higher—a classic short squeeze.
The next several sessions might look different. EOS revenue tends to be unpredictable, and contracts sometimes get pushed, so if Thursday brings a soft cash or margin number, that rally could run into trouble fast. If the spat with Grizzly heats up, expect volatility to stick around.
EOS is courting Europe as defense spending ticks up, and told Reuters it’s eyeing a headquarters and stock listing move to the continent within the next year. The company expects a final call in the first half of 2026. On the continent, defense names like Rheinmetall and MBDA are ramping up their own laser programs, keeping investors attuned to which players can actually scale up production. (Reuters)
