Discl: Held IRL 16.4% and in SM

Given EOS’ continued excellent communication and market transparency, the Appendix 4C & Trading updates is now mostly an exercise to pick out what has not been previously communicated rather than an update of new news. A really good thing!

KEY ACTIVITIES

EOS relocated its business activity in SIN to a new facility, which includes a new Remote Weapon Systems (RWS) service and and High Energy Laser Weapon (HELW) manufacturing facility - this was a condition of the Korean HELW contract signed in mid-Dec 2025. The customer inspection has occurred and no further requirements on the facility were made, ticking off the contract condition. EOS expects the remaining contract conditions to be concluded in Feb or Mar 2026.

CONTRACT BACKLOG

Very nice picture!

The end EOFY 25 Contract backlog of $459m is a $323m or 238% increase from Dec 2024

Only includes unconditional contracts:

• Excludes the Korean HELW contract, if included, total backlog is $579m
• Excludes the conditional Ukraine contracts where progress has slowed due to continued funding challenges

SMALL “POSITIONING” CONTRACTS

Nov 2025, EOS Space Systems was part of a Spaceflux-led consortium which was awarded 3 major UK Govt contracts for Space Domain awareness. Modest initial contract sizes (<A$1m), but EOS believes this is a key step into the fast growing UK industry.

Post the end of quarter, one small contract was signed: EOS’ KiwiStar Optics secured a ~A$5m contract to produce critical optical elements for the world’s largest ever optical/infrared telescope: Europe’s Extremely Large Telescope (ELT). Not a big material contract, but very good for EOS to participate in these leading edge space technologies.

CASHFLOW

• Cash Holdings on 31 Dec 2025 was $106.9m, up $15.4m from Sep 2025 cash holdings, no borrowings
• Secured a commitment to a $100m, 2-year secured term loan facility
• Additional $41.6m of cash security deposits held with banks to support bank guarantees and bonds

Operating Cash Flows

Net Cash inflow was $19.3m, reversing the cash outflow of ($34.3m) in Q3FY2025. Noticeable spike in customer receipts as customer completion milestones were achieved.

Other than flat Advert & Marketing costs, costs generally rose in line with higher activity levels to support the increased order book and payments to support future customer deliveries.

Net Cash Inflow from Investing activities of $17.1m was due to (1) the maturity of a $20m term deposit (2) net cash proceeds of $9.8m arising from the reduction of cash security deposits under performance bonds following completion of contract deliverables (3) partly offset by the cash payment of $6.3m as part of the interceptor business acquisition in Nov 2025.

In the past 18 months or so, management have had a clear strategy, executed against that strategy, and the cash management has been proactively managed to support the strategy execution. There is also continued evidence during investor calls of strong project contract discipline to ensure that all projects are cashflow positive from the onset. The cashflow reports confirm the positive impact of this discipline, so have no concerns on cash management.

OTHER UPDATES

There has been some movements/fine-tuning of the various bond facility agreements, covenents and bank guarantees - EOS confirms it has complied with its covenants and other obligations under the various facility agreements

EOS made progress with its obligations to contribute to the economic development in a Middle East country as a contract offset (1) business plan was approved (2) steps are being taken to establish a 49% EOS owned JV with Shielders Advanced Industries to set up local manufacturing and assembly of the R150 RWS in the Middle East. EOS is currently in compliance with its obligations.

TRADING UPDATE

EOS expects full-year FY2025 revenue to be slightly above the previously announced range of $115 to $125m - very positive! 

Worth ending this note with the point that FY2026 revenue can only be significantly above the FY2025 revenue as the $579m order book is due to be delivered mostly in in FY2026 and FY2027, spilling into FY2028. Hard to forecast what the revenue profile is, but a simple 50% split of the order book would put the FY2026 revenue at around ~$250-$275m perhaps, a potential doubling of FY2025 revenue, before any FY2026 orders.

A really good place to be.