(Corrects headline and paragprah 1 to say order intake grew 87%, not order book.) March 18 (Reuters) - French underwater drone maker Exail Technologies said on Wednesday its full-year current core
Underwater drone maker Exail's profit leaps as 'high-intensity conflicts' spur demand
Exail Technologies Reports Strong Financial Growth Amid Rising Geopolitical Tensions
By Hugo Lhomedet and Jakob Van Calster
Profit Surge Driven by Major Contract Wins
March 18 (Reuters) - French underwater drone maker Exail Technologies' core profit grew 40% to 103 million euros ($119 million) in 2025 driven by big contract wins for its mine countermeasure drone system, it said on Wednesday.
Impact of Middle East Conflicts on Oil Markets
Oil markets, already reeling amid the escalating conflict in the Middle East, face the prospect of Iran deploying mines in the Hormuz Strait, further locking down the narrow route through which a fifth of global oil exports are shipped.
Rising Demand for Demining Systems
Exail said tensions around critical passages confirm the trend of accelerating demand for demining systems as it targets an increased order book this year.
Transformation of Naval Forces
"The return of high-intensity conflicts and the rise of asymmetric threats are accelerating a structural transformation of naval forces," the company said in a statement. "In Europe, this evolution of doctrine is part of a sustainable rearmament effort."
Exail's order intake surged 87% to 844 million euros last year, whilst its backlog at the end of the period stood at more than 1 billion euros.
"Recent geopolitical developments could eventually lead some navies to increase the size of their needs and possibly accelerate certain programs," it said.
Market Performance and Future Outlook
Shares Outperform Defence Peers
SHARES OUTPERFORM DEFENCE PEERS
Shares of Exail rose more than 5% in volatile early trading in Paris. They have gained more than 60% so far this year as drone warfare revolutionises the military landscape. The company is one of only a handful worldwide to produce mine-hunting underwater drones.
Analyst Perspectives
"Business prospects have never looked so promising," French brokerage Portzamparc said in a note to clients. "We remain particularly attentive to any new opportunities that might arise from the threat of mining the waters of the Strait of Hormuz."
Financial Forecasts and Strategic Targets
For 2026, Exail forecast revenue growth in a double-digit percentage, with earnings before interest, taxes, depreciation and amortisation rising more than its revenues.
It continues to target an EBITDA margin of 25% when its new major mine-hunting programme enters the production phase.
($1 = 0.8664 euros)
(Reporting by Hugo Lhomedet, Jakob Van Calster and Elena Smirnova in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)
