Exclusive-Australian laser maker EOS heads for Europe as defence demand soars

Jan 30 (Reuters) - Australia's Electro Optic Systems (EOS) is "very likely" to shift its headquarters and stock market listing from Australia to Europe within a year, its CEO told Reuters, in a strategic pivot to capitalise on booming European defence spending.

EOS won the world's first export contract ​for a 100-kilowatt-class laser weapon when the Netherlands bought its system for 71 million euros ($85 million) in August 2025.

CEO Andreas Schwer now sees scope ‌for many similar deals amid urgent European demand for drone-defence technology and growing sovereignty concerns over where intellectual property is held.

FINAL DECISION EXPECTED IN FIRST HALF

If completed, the shift would make EOS the ‌first major defence company to relocate permanently to Europe to keep access to the continent's expanding defence market, as governments scramble to build sovereign military capabilities amid concerns of reduced U.S. support under President Donald Trump.

Schwer said a final decision was expected in the first half of 2026. Germany is a likely location for the new base and listing, though Amsterdam is also under consideration given the Netherlands' role as EOS's first laser-system customer. He declined to identify a third country being considered.

The choice will ⁠depend partly on whether the country agrees to enter a ‌long-term framework agreement with EOS, Schwer said.

Shifting the headquarters requires no regulatory approval and "should happen by the end of this year", Schwer said. A relisting could happen then, or in early to mid-2027.

Production and engineering facilities are already being set up in ‍Germany, Schwer said, adding EOS was in talks with 10 European governments about future orders.

Destroying small drones with missiles can cost tens of thousands of euros per shot, compared with as little as one to 10 euros for high-energy laser systems, a price gap reshaping air-defence economics as drone threats proliferate.

"There is no noise, no gunshot, no light. It simply ​causes the drone to fall from the heavens from a huge energy impact that makes it melt down," Schwer said.

High-energy lasers are not yet fully battle-tested. ‌Rain, fog and dust can severely degrade the effectiveness of the beams, while substantial cooling and energy demands make frontline use hard to predict.

EUROPE'S BATTLE FOR SOVEREIGNTY

Control of IP is emerging as a central issue in Europe's defence build-up.

Anticipated export curbs on U.S. laser systems exceeding 50 kW make it imperative for Europe to develop its own capability.