EOS trades at 0.5x order book. Peers trade at least double valuation with lower growth, page-9

Something is not smelling right about EOS and the Land 400 Phase 3 Program. Hanwha were selected as preferred bidder in Jul 23 and the contract was signed in Dec 23, with deliveries supposedly occurring in 2027-28. How can such a critical sub-system still not be under contract by now is puzzling. Integration of the R400 with the turret and vehicle systems will be one of the critical pieces of systems integration in the program and should be seen as a very high priority. Why would Hanwha delay the start of such critical work? What is wrong with the negotiations to have delayed things so far?

As to your comments about the management navigating the historical issues - you may be right, only time will tell. The new leadership have not been able to do is sign a significant RWS or Directed Energy contract since they were appointed. All we hear is variations on the story about how close all these big contracts are. The same comments are peddled out at every briefing and stated as a matter of faith that they are assured. The world has flashpoints popping up in Europe, Middle East and potentially the Pacific. Defence spending globally is up and still no sales. The promises being made by EOS Leadership must be critically challenged as they are starting to look hollow.