Electro Optics Systems Holdings (ASX:EOS) Reports Business Turnaround and Financial Strengthening
Restructuring Program
EOS has right-sized its organisational structure by reducing approximately 100 roles. The company has also recruited key personnel with strong commercial backgrounds and industrial experience to support its turnaround efforts.
Portfolio Review
In Q4 2022, EOS ceased investment in SpaceLink and concentrated its remaining business around strategic pillars. The company divested its non-core naval satcom business for $158 million.
Financial Performance
EOS has strengthened its focus on cash receipts and disciplined management of costs and capital. By 31 January 2025, the company repaid all borrowings and maintained a cash balance of approximately $128 million along with ~$48 million in cash security deposits.
Build Order Book
The company continues to expand its sales capability to capture evolving contract opportunities, ensuring consistent execution of its comprehensive change program.
Motley Fool contributor Lauren Surplice 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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