Electro Optic Systems to invest €10M in French engineering hub

Electro Optic Systems (EOS), the Australian company working on laser-based technologies for defense and space applications, says it plans to invest €10 million in an engineering hub in Nice, southern France.

Initially focused on AI-enabled counter-drone command and control systems that the Canberra firm recently acquired through its deal to buy defense-focused MARSS, EOS will also explore the possibility of using the Nice facility to produce high-energy laser systems.

“The investment is expected to create up to 150 jobs over three years, including high value-added engineering and software development roles,” EOS announced.

“The new hub will strengthen France’s defence industrial ecosystem through sovereign technologies and build on EOS’s existing cooperation with KNDS.”

EOS CEO Andreas Schwer added: “France is making a decisive commitment to its defense sovereignty, and EOS is proud to support that ambition.

“Establishing our European hub in France allows us to deliver counter-drone and command-and-control capability that partner nations own, produce, and sustain on their own terms. This is what genuine industrial sovereignty looks like.”

Drone proliferation

As EOS points out, news of the firm’s expansion in Nice comes as European governments are looking to accelerate investment in air defense in response to the rapid proliferation of low-cost drones stimulated largely by Russia’s invasion of Ukraine and Ukraine’s subsequent technology-led response.

“EOS is one of a few specialized companies outside the US able to offer high-energy laser weapons, and its model is built around full technology transfer and local production, allowing partner nations to manufacture and maintain capability without dependency on foreign export controls,” stated the company.

Back in February EOS opened a new facility in Singapore intended to scale the production of high-energy lasers, while the firm says it has secured an export order for a 100kW-class laser weapon system from the Netherlands, and has also held advanced discussions for similar deliveries to Germany.

This week sees EOS exhibit at the giant “Eurosatory” defense and security event in Paris, where visitors will be able to experience live demonstrations of AI-enabled command and control capability alongside displays highlighting its high-energy laser technologies.

In a trading update that coincided with the latest announcement, EOS said it had recently secured an order with US-headquartered defense contractor L3Harris for its Australia-built technology to be integrated within a counter-drone weapon system.

“Ongoing conflicts in the Middle East and Europe have ensured that enquiry levels for EOS products remain at elevated levels,” announced the firm, with 2026 sales revenues now expected to be somewhere between $240 million and $270 million, not including the newly acquired MARSS business, whose likely contribution is currently being evaluated.