Federal Court to slug EOS with $4m penalty for failing to disclose revenue downgrade
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The news: Federal Court Judge Ian Jackman said he intends to order counterdrone manufacturer Electro Optic Systems to pay a $4 million fine for breaching its continuous disclosure obligations by not disclosing a materially significant revenue decline in 2022.
The numbers: Electro Optics Systems initially issued 2022 revenue guidance of $212.3 million between May and June 2022.
It later became aware by 25 July 2022 that it was likely to be $164 million, with a possible extra $27 million, but this was not disclosed until 14 weeks later on 31 October 2022.
The context: The fine amount of $4 million was jointly submitted with corporate regulator ASIC in November 2025.
Separate to this case, Electro Optic Systems in March 2026 also had to update its continuous disclosure policy after the ASX found that a conditional high energy laser contract announced in December 2025 “failed to adequately describe market sensitive information”.
What they said: During the Federal Court penalty hearing on Thursday, Justice Jackman said: “I indicate that I’m prepared to make orders as sought by the parties, and the declaration is sought by the parties.
“I’ll circulate reasons, I hope sometime next week, but I won’t, for the sake of good order. I won’t formally make the declaration in order today. I’ll do that when I publish reasons, but you can anticipate that I will make the orders sought.”
The source: Federal Court of Austalia
