France's Exail posts revenue surge as drone demand climbs
22/10/2025 17:38
By Hugo Lhomedet and Gianluca Lo Nostro Oct 22 (Reuters) - French underwater drone maker Exail Technologies EXA.PA posted an 18% surge in quarterly revenue, the latest defence firm in Europe boosted by higher military budgets in the region, as it signaled strong demand for drones. WHY IT'S IMPORTANT Drones have gained prominence as European militaries assess their air and maritime defence capabilities following Russian attacks on Ukraine and a spate of airspace incursions across the continent. Exail stands to benefit from military applications of drone technologies, which have been increasingly used in the Russia-Ukraine conflict. Its drones are used to detect and neutralize sea mines and have been chosen by several navies, including France and Indonesia, giving the company a pipeline of potential orders worth nearly 3 billion euros. The group also appointed former NATO maritime commander Vice-Admiral Didier Maleterre as defence advisor to strengthen ties with military clients CONTEXT The European Union wants half of its defence equipment to come from European suppliers by 2030, a target that has raised demand for homegrown technologies. Earlier this year, Exail secured a demining contract in Ukraine as part of the French government's Ukraine Fund project. BY THE NUMBERS Third-quarter revenue jumped 18% from a year ago to 105 million euros. Exail's order intake more than doubled in the first nine months of the year to 697 million euros. The company forecasts annual revenue to grow between 20% and 25%, with core profits outpacing the growth in sales. Exail's shares have soared over 370% this year, lifting its market value above 1.4 billion euros from less than 300 million euros a year ago. (Reporting by Hugo Lhomedet and Gianluca Lo Nostro; Editing by Matt Scuffham) ((hugo.lhomedet@thomsonreuters.com))