French underwater drone maker Exail Technologies posted an 18 per cent surge in quarterly revenue, the latest defence firm in Europe boosted by higher military budgets in the region, as it signalled strong demand for drones.
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 neutralise 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.
The group also appointed former NATO maritime commander Vice-Admiral Didier Maleterre as defence advisor to strengthen ties with military clients.
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.
Third-quarter revenue jumped 18 per cent from a year ago to €105 million ($122 million).
Exail's order intake more than doubled in the first nine months of the year to €697 million.
The company forecasts annual revenue to grow between 20 per cent and 25 per cent, with core profits outpacing the growth in sales.
Exail's shares have soared over 370 per cent this year, lifting its market value above €1.4 billion from less than €300 million a year ago.
(Reporting by Hugo Lhomedet and Gianluca Lo Nostro; Editing by Matt Scuffham)