Strategic Partnership and Strong Defense Position Ease EOS Investor Concerns

Australian defense technology specialist EOS Defence Systems has moved to solidify its market standing through a key international alliance and a robust rebuttal of recent short-seller allegations. The company announced a strategic collaboration with Turkish defense firm Roketsan at the World Defense Show in Riyadh, aimed at co-developing integrated defense systems.

The partnership is designed to leverage the complementary strengths of both entities. EOS will contribute its expertise in remote weapon systems and high-energy laser technology, while Roketsan brings its experience in missile systems and integration. The central objective is to address the rapidly expanding global demand for counter-unmanned aerial vehicle (C-UAV) solutions, a segment viewed as a primary growth driver for EOS. This alliance follows several recent export contracts secured by the company for its directed energy weapon systems and is expected to further enhance its market position and access.

Addressing Market Allegations Head-On

The announcement coincided with a period of stabilization for EOS shares following significant volatility. Management issued a detailed response on February 10 to a report published by Grizzly Research on February 6, which had triggered a trading halt.

The company firmly rejected the short-seller's claims as "misleading." A central point of contention was a contract with South Korean customer Goldrone, valued at approximately 80 million USD. EOS clarified that this agreement is classified as "conditional," pending an initial deposit. Consequently, the value was not included in the firm's reported firm order backlog—directly countering allegations of inflated revenue projections.

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Financial Position Clarified

In its statement, EOS provided updated financial metrics as of December 31, 2025. The firm order backlog stood at 459 million AUD, a figure substantially higher than the prior year's level.

To dispel market rumors regarding liquidity, the company presented verified data. As of December 31, 2025, EOS reported total available liquidity of 106.9 million AUD. This figure, confirmed in its quarterly report, demonstrates a solid capital base to fund ongoing projects and delivery commitments without an immediate need for external financing.

Share Price Recovery and Legal Action

After the trading halt was lifted, the stock initially fell to an intraday low of 5.05 AUD before staging a notable recovery to close at 6.71 AUD on Tuesday. Shares held relatively steady around 6.63 AUD on Wednesday.

Over a 12-month period, the equity continues to show strong performance, supported by rising global defense expenditures and the ongoing commercialization of its directed-energy portfolio. EOS is currently examining potential legal action against the short-seller in both Australia and Germany. The strategic partnership with Roketsan, announced on February 10, marks a significant milestone for the company's international expansion strategy.