The customer is a member of the Gulf Co-operation Council, EOS said. EOS will serve as prime contractor and systems integrator, putting the NiDAR command-and-control system acquired through its recent purchase of MARSS at the centre of the deployment.
Sensors, interceptors and jammers
The contract includes third-party electro-optical sensors, radar and sonar to detect threats at medium and longer ranges. Their data will feed into central command centres, where NiDAR will combine the inputs to produce actionable threat assessments.
NiDAR is an AI-enabled system designed to counter airborne and coastal seaborne drones. The agreement also covers an initial supply of third-party hard-kill interceptors and soft-kill jammers.
EOS expects to earn more than 80% of the revenue in the first 12–24 months after the contract becomes unconditional. Approximately 20% of the contract’s value relates to support over four years.
Financial guarantees and export approvals
Before work can start, EOS must provide a £74 million bank guarantee and receive an advance payment of the same amount from the customer. The company must also obtain export licences for system components within two months of receiving the necessary documentation from the customer.
EOS provided a separate £37 million performance bond guarantee on 12 August 2026, meeting the requirement for a guarantee equal to 10% of the contract value. It is secured by a £40.3 million cash deposit, approximately A$77 million, placed with a commercial bank.
The company intends to meet the remaining conditions in the coming months, but said there was no guarantee whether or when it would do so. If EOS fails to fulfil a condition, including obtaining export licences, the customer can terminate the contract or withdraw the work and have it completed at EOS’ expense.
The agreement includes warranties lasting five years from the customer’s acceptance of the system. It also provides for termination rights and capped and uncapped damages for failure to perform, delays and other breaches.
Upfront funding requirements
EOS expects the contract to be profitable and cash-flow positive over its term. However, it will require substantial working capital in the early stages, with the cash-flow position expected to turn positive in mid-2027.
The company raised capital in May 2026 to fund the upfront MARSS acquisition payment, support contract ramp-up and development, and give it greater financial flexibility. EOS said it also needs certain consents and further accommodation from WHSP and guarantee facility providers in connection with the contract’s performance bond and guarantee.
