By Hugo Lhomedet and Jakob Van Calster
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.
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.
Exail said tensions around critical passages confirm the trend of accelerating demand for demining systems as it targets an increased order book this year.
“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.
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.
“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.”
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)
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