French Underwater Drone Maker Exail Soars 370% as European Defense Boom Fuels Growth

French underwater drone manufacturer Exail Technologies posted an 18% surge in third-quarter revenue as European defense spending accelerates in response to Russia’s war in Ukraine, according to Baird Maritime. The company’s stock has rocketed 370% this year, lifting its market value above €1.4 billion ($1.5 billion USD) from less than €300 million ($320 million USD) a year ago.

The explosive growth positions Exail as a prime beneficiary of Europe’s pivot toward homegrown defense technology, with autonomous underwater drones increasingly viewed as essential for modern naval warfare and mine countermeasure operations.

Revenue and Order Intake More Than Double

Exail Technologies reported third-quarter revenue of €105 million ($122 million USD), an 18% increase from the same period last year. More dramatically, the company’s order intake more than doubled in the first nine months of 2025, reaching €697 million ($812 million USD).

The company now forecasts annual revenue growth between 20% and 25%, with core profits expected to outpace sales growth. Exail’s pipeline of potential orders has swelled to nearly €3 billion ($3.5 billion USD) across multiple naval contracts, including recent wins with the French and Indonesian navies.

Mine-Hunting Drones Answer Growing Threat

Exail specializes in autonomous underwater vehicles designed to detect and neutralize sea mines, a critical capability as European militaries reassess their maritime defense posture. The company’s UMIS (Unmanned MCM Integrated System) combines surface drones, underwater detection vehicles, and mine identification and destruction systems into a unified platform.

Recent contracts demonstrate the system’s appeal. In June 2025, Indonesia selected Exail to provide multiple autonomous drone systems for two next-generation mine countermeasure vessels. The contract, similar in scale to a 2024 deal with the United Arab Emirates Navy, will be executed over three years.

In May 2025, Singapore’s Navy ordered multiple robotic systems including SEASCAN underwater drones for identification missions and expendable K-STER drones that self-destruct during mine neutralization operations.

Ukraine Contract Highlights Demining Priority

Earlier this year, Exail secured a €15 million ($17.5 million USD) contract as part of France’s Ukraine Fund, a €200 million ($233 million USD) government initiative supporting Ukraine’s reconstruction. The project, presented in partnership with French demining specialist Géomines, includes both underwater and land drones plus training for Ukrainian personnel. The contract runs through 2026.

The Ukraine selection came from more than 70 applications, with only 19 projects chosen across critical sectors including energy, health, water, and demining.

Former NATO Commander Joins as Defense Advisor

To strengthen ties with military clients, Exail appointed Vice-Admiral Didier Maleterre, former NATO maritime commander, as defense advisor. The move signals the company’s ambition to expand its footprint among allied navies as underwater drone technology gains prominence in naval operations.

Maleterre’s NATO experience could prove valuable as the alliance nations coordinate defense procurement and operational standards for autonomous maritime systems.

European Defense Spending Wave Lifts All Ships

Exail’s growth mirrors a broader surge in European defense investment driven by Russia’s invasion of Ukraine and subsequent airspace incursions across the continent. The European Union has set an ambitious target: 50% of defense equipment should come from European suppliers by 2030, up from current levels.

The EU’s Defense Readiness 2030 plan proposes up to €150 billion ($163 billion USD) in loans for joint procurement from European defense companies. Priority capability areas include drones, counter-drone systems, air defense, and military mobility.

European defense stocks have repeatedly hit records in 2025 as nations commit to increased military spending. At the 2025 NATO Summit in The Hague, alliance members pledged to invest 5% of GDP annually on defense and security-related spending by 2035.

Production Capacity Scales to Meet Demand

Formed through the merger of ECA Group and iXblue, Exail operates a dedicated drone assembly facility in Ostend, Belgium, designed for serial production. The company emphasizes its vertical integration across drone systems, sensors, and navigation technology—capabilities that enable rapid scaling as orders accelerate.

Exail’s previous-generation mine countermeasure robots set industry standards, with nearly 500 PAP drone systems sold worldwide over four decades. The company now aims to replicate that success with its next-generation UMIS platform.

DroneXL’s Take

The 370% stock surge tells you everything about where defense investors see the future—and it’s autonomous, it’s underwater, and it’s European.

We’ve covered the U.S. Navy’s Manta Ray program extensively, watching Northrop Grumman test massive autonomous underwater vehicles off California’s coast. Now Europe is playing catch-up with serious money behind it. Exail’s growth isn’t just about one company—it’s a window into how the Ukraine conflict has fundamentally reshaped defense priorities across the Atlantic.

The mine countermeasure mission is particularly interesting because it’s one area where autonomous systems offer overwhelming advantages over traditional methods. Why risk human crews in minefields when drones can map, identify, and neutralize threats? The technology has matured to the point where navies can deploy integrated systems combining surface vessels, underwater scouts, and disposable kill vehicles—all coordinated through unified command software.

What’s striking is the speed of this transformation. Three years ago, Exail was worth under €300 million. Today it’s a €1.4 billion company with a €3 billion order pipeline. That’s not hype—that’s validated demand from multiple allied navies who’ve done their homework and committed real money.

The EU’s push for 50% European-sourced defense equipment by 2030 creates a structural advantage for companies like Exail. When you combine that policy goal with €150 billion in procurement loans and the hard lessons from Ukraine about autonomous systems, you get a perfect storm for European drone manufacturers.

One question worth watching: Can European companies scale production fast enough to meet demand? Exail’s Belgium facility is designed for volume, but defense manufacturing historically struggles with rapid expansion. The company’s 18% revenue growth is impressive, but with orders doubling, there’s clear tension between what customers want and what factories can deliver.

For drone operators and industry watchers, Exail’s trajectory reinforces a broader truth: The barrier between “underwater drones” and “aerial drones” is dissolving. The same autonomy, sensor fusion, and command-and-control principles apply whether you’re 400 feet underwater or 400 feet in the air. Companies that master autonomous systems—regardless of domain—are positioned to capture defense budgets for years to come.

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