Flagging Exchange Income (EIF), which was down 6% Friday after announcing it lost its bid for a large Australian surveillance contract…
… which management previously said could double revenue in its higher margin ISR business if they were successful.
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During the quarter, we also submitted our proposal to the Australian government for their maritime surveillance contract. This is the Super Bowl of maritime surveillance contracts, and we were 1 of 3 bidders on the contract.
Michael Pyle (CEO) - EIF Q4/24 call
With shares re-rating over the past year on the defence theme, the failed bid could weigh on valuation in the near-term…
… but with Carney’s Defence Industrial Strategy creating surveillance opportunities in the north, the negative sentiment could be short-lived.
