Exail's Order Intake for Underwater Drones Surges 519%
By Anna Peverieri
(Reuters) - French high-tech industrial group Exail Technologies on Wednesday reported a 519% rise in its order intake in the first quarter of the year, driven by higher defence spending by European governments.
The maker of underwater drones and navigation equipment said its order intake for the first quarter totalled 487 million euros ($554.30 million), boosted by a new contract for drone systems worth several hundred million euros.
The company did not give further details on the deal, announced in February, when it said it was placed by a "leading Navy".
Exail is the latest small defence tech supplier propelled by prospects of a military ramp-up in Europe as the region increases its defence budgets, after shrinking them for decades.
Its shares have gained 153% so far this year.
The company reported a backlog worth 1.1 billion euros ($1.25 billion) at the end of the first quarter. Of total orders, 75% were placed by the defence sector, Exail said in a statement.
Group sales increased 18% in the first three months of the year, supported by the performance of its navigation and maritime robotics business, which accounts for three-quarters of total revenue.
European countries are boosting defence spending and maintaining support for Ukraine on worries that the United States, which has guaranteed Europe's security since the end of World War Two, is no longer keen to do so.
Exail confirmed its 2025 outlook of double-digit revenue growth for 2025.
($1 = 0.8786 euros)
(Reporting by Anna Peverieri; Editing by Kirsten Donovan)
