EOS is a defense and aerospace business that was privatised by the commonwealth government in 1983 and then listed in 2002.

It's been a very lumpy performer, and on balance a loss maker. Although the past three years have seen a sharp uptick in sales and growth expectations.

It has three segments -- defense, space and communications, although defense is by far the largest.

The company has spent $800m on R&D in thje past 20 years, most of which it says remains unexploited.

Sales for the current year should come in close to 10x where they were in 2017, and the company has a $570m order backlog. They also reckon there's a $12b market opportunity over the coming few years, of which it has tendered for ~$3b worth.

EOS currently has a $450m pa production capacity that is being upgraded to $900m pa by 2024, in anticpiation of more orders.

There certainly appears to be a strong tailwind with defense spending. (which is rather depressing). It's hard to get a seat at the table in this space, so EOS's long experience and connections are a definite advantage.

EOS has $128m in cash and no debt. It expects $20-30m in EBIT for FY20 (it reports on a calendar basis).

If the company can effectively boost revenues to $500-600 in the next 3-4 years, and maintain reasonable margins, I think EOS represents a good opportunity.

I would note however that this is a tough space with a lot of well-funded global competitors. Contract wins are long and difficult and sales orders very lumpy. A quick look back through past annual reports shows that big orders are always on the horizon -- but not always realised.

It takes a lot of hard assets and ongoing R&D to sustain operations too. There's a big CAPEX requirement.

On balance, I think EOS holds promise for those with a 3+ year view. But i also recognise my limited knowledge in this area, and appreciate that if sales growth doesnt materliase as expected there is more than a bit of downside.