Electro Optic Systems is accumulating meaningful defense and space opportunities. It has MoUs for Czech vehicle systems and Indian high-energy lasers, was selected for the US Space Force's satellite-tracking reserve, and has an A$700m Kuwait counter-drone contract that could drive over 80% of revenue in 12–24 months. x.com 

Theon International is a European defense company with excellent management, executing a roll-up strategy with huge tailwinds from European defense spending. Focused on night vision, it just bought a counter-drone company. Fundamentals improved in the latest quarter, yet the stock is down big on broad defense-market bearishness and sits within 10% of its trailing lows. x.com 

The best valuation-adjusted European and Asian defense names are probably not the obvious winners such as Saab and Rheinmetall, where much of the easy multiple expansion already happened. In Europe, Leonardo ranks first, then BAE Systems. In Asia, Korea Aerospace Industries and Hanwha Aerospace lead, followed by LIG Nex1 and Hyundai Rotem. Per @eliant_capital, this year's geopolitical developments mean European and Asian defense companies are still likely headed a lot higher. x.com  x.com 

European defense tech clearly leads US peers in battlefield impact, getting real-world combat validation years ahead of most legacy US primes' roadmaps. US allocators still treat Europe's sovereignty buildout as a sentiment trade rather than the multi-year EU procurement policy it actually is. This answers @LarsenJensenUSA asking whether European defense tech has had a greater battlefield impact than American firms. x.com 

Electro Optic Systems is the best public stock for the rising importance of space warfare, a view matched by first-hand observation of NATO's Aurora exercise in Sweden as a reserve officer. As @PhotonBull argues, modern war runs on satellites for GPS, drone datalinks and over-the-horizon ISR, and whoever controls the orbital layer wins the surface war by default. x.com  x.com 

Drone stocks fell in 2026 even as backlogs hit records: Ukraine turned aircraft into ammunition, and the Pentagon's 2027 request holds nearly $75B for drones and counter-drone. AeroVironment's reordered loitering munitions and Kratos's jet drones are highest conviction. Counter-drone names Ondas, Axon, Motorola Solutions, Safe Pro, DroneShield and Rheinmetall gain as threats grow, Unusual Machines from Chinese-parts bans. Primes bury drone exposure; pure plays may not convert backlog. x.com  … Show more

Electro Optic Systems, nLIGHT and LightPath are defense stocks to own as forward multiples may compress with no high-profile conflicts in sight. US and European rearmament is unchanged and earnings should grow solidly for two to three years, but upside may take patience. Well-managed, profitable firms with backlog growth in the fastest-growing niches should hold up better than cash-burning drone makers. EOS's UAE joint venture, laser contract and $124 million RWS contract add optionality. x.com 

Electro Optic Systems' counter-drone business gets a massive boost from an A$700m contract for nationwide counter-drone defense. x.com 

Third-party sensors and hard-kill effectors make EOS's A$700m Kuwait contract less valuable than proprietary RWS or laser sales. MARSS gross margins already trail EOS's 50%, so the contract cannot earn the same revenue multiple; it is marginally profitable with an initial working-capital drag. EOS remains attractive for its vertical integration, but becoming a low-margin defense prime is a concern. Its only value is that it might open Gulf opportunities for EOS to supply its own RWS or lasers. … Show more

Electro Optic Systems looks set to be huge in the Middle East as drone defense becomes a pressing need in areas Iran can reach. Per the Washington Post, US soldiers who survived an Iranian drone strike in Kuwait said commanders ignored warnings that the base lacked adequate drone defenses. US bases there will probably buy US-made lasers, however. x.com