Electro Optic Systems (ASX:EOS) Completes EM Solutions Divestment and Debt Repayment
Divestment and Debt Repayment
Electro Optic Systems Holdings Limited (ASX:EOS) announced the completion of the divestment of its non-core subsidiary, EM Solutions, to Cohort plc for an enterprise value of $144.0 million. The transaction was finalised on 31 January 2025, with EOS receiving $158.6 million in divestment proceeds. Following the sale, EOS repaid $61.1 million to its primary lender, Washington H. Soul Pattinson, resulting in nil borrowings and a cash balance of approximately $128.0 million.
Financial Performance
For the quarter ended 31 December 2024, EOS reported a total cash balance of $52.3 million, a decrease of $2.7 million from the previous quarter. Operating activities resulted in a net cash outflow of $10.3 million, with customer receipts totaling $64.3 million. Additionally, EOS maintained $48.0 million in restricted cash held as security for bank guarantees.
Operational Highlights
EOS continued manufacturing Remote Weapon Systems (RWS) for customers in the Middle East and Australia, and delivered Slinger counter-drone systems to Germany. The company secured a new order for Counter-Drone Container-Based RWS from a Western European customer valued at approximately A$13.6 million, with deliveries expected in 2025. Orders for RWS spares from EOS Singapore amounted to approximately A$20.1 million, with deliveries slated for 2025 and 2026.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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