By Anna Peverieri
(Reuters) -French high-tech industrial group Exail Technologies on Wednesday reported a 52% rise in second-quarter sales, as geopolitical tensions fuel military spending in Europe.
The underwater drone maker reported quarterly revenue of 126 million euros ($148 million), boosted by programmes to counter mines and solid navigation system deliveries.
“The defense sector is making a significant contribution to commercial expansion, with the signing of numerous sovereign programs during the quarter, particularly in Europe and Asia,” the group said in a statement.
Exail’s shares have leapt almost 500% so far this year.
NATO alliance members have committed to increase defence budgets, which is expected to trigger more military spending and orders.
President Emmanuel Macron pledged earlier in July to double France’s military budget by 2027, three years ahead of the original 2030 target.
Exail’s backlog stood at 1.1 billion euros at the end of the second quarter, while its order intake for the quarter totalled 125 million euros.
Orders were up 51% from the same period a year ago, driven by strong demand in maritime robotics for defense.
Exail confirmed its 2025 guidance for a double-digit percentage rise in revenues and an increase in current core profit (EBITDA) outpacing revenue gains.
($1 = 0.8520 euros)
(Reporting by Anna PeverieriEditing by Mark Potter)
