Press release

Paris, 15 September 2025 at 18h

Key figures for the 1^st half of 2025

• Record order intake: more than €600 million in the 1^st half of 2025
• Strong revenue growth, up 35%,
• Stronger growth in current EBITDA: +45%, including +54% in the Navigation & Maritime mobotics segment,
• Increased cash flow from operations before WCR: €40 million, up 48%,
• A marked deleveraging, with an improvement in net debt[1] of €34 million over 12 months.

Exail Technologies generated very strong growth in the 1^st half of 2025 across all its indicators. Revenues increased by +35%, thanks in particular to the significant order intake generated last year (€451 million in 2024), the ramp-up of maritime robotics programs and the increase in the production rate of navigation equipment. Commercial activity accelerated this half-year with €612 million in new orders, including a new large-scale program worth several hundred million euros.

Other processes for potential orders for the mine countermeasures application have progressed this half-year. They concern new customers who wish to equip themselves, significant additional needs for existing customers as well as the resumption of previous processes that may have been postponed. Some of them could be signed soon.

The strong revenue growth generated significant growth in current EBITDA, which increased by more than 2 points in the main Navigation & Maritime robotics segment. This improvement in profitability has led to a strong increase in cash flow from operation, which, combined with good control of working capital and capex, allows the continuation of the debt reduction trajectory.

These good results are the direct consequence of the commercial dynamism and operational efforts initiated several years ago. For the moment, they incorporate almost no positive effect of new trends in the defense sector. These new trends should fuel the growth of the next five years. The beginning of 2025 revealed new opportunities for Exail Technologies for the future, driven by the rapid increase in defense budgets. The group stands out today as one of the leaders in fast-growing strategic areas: maritime drone systems and critical navigation equipment.

H1 2025 income statement

The consolidated financial statements presented below were approved by the Board of Directors, which met on September 15, 2025. The financial statements have been reviewed by the Statutory Auditors and their reports are in the process of being issued. The financial statements are available as an appendix to this press release.

€220 million in revenues, up +35%

Exail Technologies generated remarkable revenue growth in the 1^st half of 2025, up +35%. This performance is the combined result of:

• the ramp-up of maritime robotics programs, with the entry into the delivery phase of the Belgian-Dutch program and the start of contracts signed last year (France, UAE, etc.);
• the acceleration of sales of DriX surface drones with new successes for defense applications in addition to civilian uses;
• deliveries of navigation systems, which increased once again this half-year, by nearly 20%, thanks to the rapid increase in production capacity;
• a favorable base effect (the 2^nd quarter 2024 had been disrupted by the intense commercial activity at the beginning of 2024).

A press release dedicated to 1^st half 2025 revenue and orders was published on July 23, 2025 (link to the press release).

€44 million in current EBITDA

The group's profitability improved in the 1st half of 2025, with current EBITDA growth faster than revenues, up 45%. As a result, the group's current EBITDA margin increased by 1.3 points compared to the 1^st half of 2024 and stood at 20%.

Current EBITDA and income from ordinary activities by segment[3]

The improvement in the Group's profitability is mainly due to the Navigation & Maritime robotics segment, thanks to the increase in its current EBITDA of +54%. This change is explained by an increase in the volume of robotics activity, linked to the multiplication of contracts in progress. The start of the delivery phase, a critical stage in the Belgian-Dutch program, is leading to an increased workload. The drone assembly plant in Ostend is therefore gradually ramping up its production rate. Profitability generated by navigation systems sales also increased thanks to the efficient management of production flows in a context of sustained growth.

The profitability of the Advanced Technologies segment was down due to a less favorable product mix over the period and the disruptions caused by the relocation of part of the photonics activities to a new, larger site. This move, which has now been finalized, has made it possible to regroup teams and increase production capacity for products in high demand, such as integrated photonic systems.

Operating income

Depreciation, amortization and provisions amounted to €15 million in the 1^st half of 2025, bringing income from ordinary activities to €29 million.

Other items of the operating income amounted to a charge of €14 million, essentially with no impact on cash. They include €9 million in depreciation of assets recognized at fair value in accordance with IFRS 3R, €2.8 million related to employee incentive and retention share plans and €1.8 million in restructuring costs.

As a result, the Group's operating income amounted to €14 million, up from last year.

Cost of financial debt: €12 million, mostly with no effect on cash flow

The cost of net financial debt recorded was €12 million, of which only €4.9 million was bank interest payments that generated a disbursement. This share is down sharply compared to last year, by nearly 20%, thanks to deleveraging and changes in interest rates. The balance of the financial charge is related to the bonds held by ICG whose interest is capitalized and therefore has no effect on cash.

Overall, net income was €3 million.

Increased operating cash generation

As a direct result of the improvement in profitability, Exail Technologies generated an operating cash flow before working capital of €40 million, up +48%. Working capital requirement (WCR) increased by €14 million in the 1^st half of 2025, a contained level indicating the good control of the group's cash position, as the 1^st half is traditionally much more unfavorable in terms of working capital evolution.

Capex was down slightly by one million over the half-year, representing €14 million. This decrease is due to a slight decrease in capitalized R&D expenses in the Maritime Robotics business due to a higher share of R&D funded by new customers.

Financial debt: €155 million of net debt⁴ at the end of June 2025

The group's net debt, excluding ICG bonds[4] , is therefore stable compared to the end of December 2024 (€153 million) and down sharply over the last 12 months (-€34 million). The Group also owns 2.6% treasury shares, the value of which has increased considerably since the end of the 2024 financial year, now amounting to €45 million (compared to €8 million at the end of December 2024). Adjusted for treasury payments, net debt (excluding ICG) would amount to €110 million.

The evolution of debt over 12 months clearly shows, beyond seasonal variations, the continuation of the Group's deleveraging trajectory.

Perspectives

€612 million in new orders in the 1^st half of 2025 and an order backlog of €1.1 billion

Order intake reached a record level in the 1 half, up +279%. This performance is mainly due to the mine countermeasures contracts signed since the beginning of the year. In particular, the company has won a second program worth several hundred million euros to supply UMIS robotic systems (read the dedicated press release). This program began in July 2025.

At the same time, sales of navigation systems continue to grow at a steady pace, driven by both the defense sector and civil applications. Land and air-land defense applications were one of the important growth drivers of the quarter: in this fast-growing market, Exail gained market share thanks to its mastery of fiber optic gyroscope technology, which equips more and more vehicles as well as tactical aerial drones. The other growth driver comes from civil maritime operations, driven in particular by the growing activity in the North Sea in the field of marine energy and offshore construction.

Evolution of order intake (see pdf)

Mine-hunting application: Exail aims to set a market standard

Exail has won nearly €550 million in orders for this application in the last 12 months, with a 100% success rate on the calls for tenders on which the company has positioned itself.

During the 1^st half of 2025, in addition to the major program of several hundred million euros, the UMIS drone system was selected by the Indonesian Navy, which will thus be equipped with the latest generation systems[5]. Another Asia-Pacific navy has also chosen the group to supply several MIDS (Mine Identification and Disposal Systems) drone systems. Exail's ability to offer comprehensive and combat-proven mine countermeasures drone systems has played a key role in the decision-making of these navies. The group is now the only company in the world in this position.

These orders represent several hundred drones in total. They will be assembled in the Ostend plant, dedicated to UMIS drone systems, which is gradually ramping up. A short video illustrates the production capabilities of this site: link to the video.

Many other mine countermeasures capacity renewal processes are underway around the world. They represent nearly €3 billion in potential new orders on which the group is positioned. Some of them have made progress during the 1^st half of the year and could be signed soon. They concern new customers who wish to equip themselves, significant additional needs for existing customers as well as the resumption of previous processes that may have been postponed.

Advances in new maritime drone markets for defence

The beginning of 2025 revealed major new opportunities for Exail Technologies for the future, driven by the rapid increase in defense budgets. The development of operational concepts implementing drone fleets is accelerating in most of the world's navies in order to complement or replace traditional ships. These missions concern surveillance, control of the marine environment and threat detection. Exail has won the first contracts in recent quarters for these new applications, including:

• the first sale of a fleet of five DriX surface drones for ISR (Inspection, Surveillance, Reconnaissance) missions to a European navy;
• the first sale of a new long-range DriX drone model for a defense application, to a leading global hydrographic authority;
• Last year, the sale to the French Navy of a deep-sea underwater drone, capable of operating at a depth of 6,000 meters.

Through the numerous naval exercises organized by various navies, Exail regularly demonstrates the capabilities of its surface and submarine drones. A new NATO exercise dedicated to dronised solutions, REPMUS, is being held this September in Portugal. On this occasion, Exail is deploying the new model of transoceanic DriX surface drone, with an autonomy at sea of up to 30 days.

These exercises allow the group to highlight its technological leadership in the field of maritime drone systems and generate strong interest from several potential customers. New sales of surface drones could thus materialize in the short term.

2025 Objectives

Building on its commercial successes, an order book of €1.1 billion at the end of June 2025 and structurally buoyant commercial trends, Exail Technologies is confident in its ability to maintain sustained growth in the years to come.

For 2025, Exail Technologies confirms its objectives: double-digit revenue growth and current EBITDA growth above that of revenues.

Exail Technologies enters the SBF120 index

Thanks to the increase in the stock market capitalization and liquidity (which has been multiplied by more than 20 times in capital value compared to last year), Exail Technologies announces its entry into the SBF 120 index. The SBF 120 is one of the main indices of the Paris Stock Exchange grouping together the top 120 stocks listed on Euronext Paris. This change will be effective from Monday 22 September.

Upcoming financial communications

• October 22, 2025: activity of the 3^rd quarter 2025.

About Exail Technologies

Exail Technologies is a high-tech defense company specializing in the fields of autonomous robotics and navigation systems, with a strong vertical integration of the businesses. The group offers maritime drone systems, particularly for countering underwater mines, and inertial navigation units using state-of-the-art fibre-optic gyroscope technology.

Exail Technologies ensures performance, reliability and safety to its civil and military customers operating in harsh environments and generates its revenues in nearly 80 countries. The company generates most of its revenues in the defense sector, but also from civilian customers.

Exail Technologies is listed on Euronext Paris Compartment B (EXA) and on the OTCQX (EXALF) listing market. The company is part of the SBF 120 index and the Euronext Tech Leaders segment, which includes more than 110 leading tech companies in their field or fast-growing. It is part of the MSCI Global Small Caps Index.

www.exail-technologies.com

APPENDIX

Definition of alternative performance indicators

• Current EBITDA : operating income before net depreciation, amortization and provisions, share-based payment expenses, amortization of intangible assets recognized at fair value and other operating income.

• Operating income : operating income before share-based payment expenses, amortization of intangible assets recognized at fair value and other operating income.

• Cash flow from operations before WCR : Cash flow generated from operations before changes in working capital requirements and after neutralization of the cost of net financial debt and taxes.

• Net debt : Financial debt less cash and cash equivalents, excluding IFRS 16 lease liabilities.

• Net debt excluding ICG: Net debt excluding the value of ICG bonds, which do not result in cash outflows before their maturity and are not included in the calculation of covenants.

• Adjusted net debt : Net debt excluding ICG and treasury shares

H1 2025 income statement

Balance sheet - Assets

Balance sheet - Liabilities

Cash flow statement

Segment reproting – H1 2025

Segment reporting – H1 2024

[1] Net debt is financial debt excluding the application of IFRS 16, less available cash. ICG bonds are excluded as they do not generate cash disbursements prior to maturity and are not included in the calculation of covenants. Detailed information on the group's financial structuring is available in previous financial presentations and in the 2024 URD.

^[2] Current EBITDA: operating income before net depreciation, amortization and provisions, share-based payment expenses, amortization of intangible assets recognized at fair value and other items of the operating income.

Income from ordinary activities: operating income before share-based payment expenses, amortization of intangible assets recognized at fair value and other items of the operating income.

[3] The sum of the aggregates of the two divisions must be supplemented by intra-group eliminations, the impact of IFRS 16 and the structure to obtain the consolidated result presented above. Details of these elements are available in the appendix to this press release.

[4] Net debt excluding ICG bonds: net debt is financial debt excluding the application of IFRS 16, less available cash. ICG bonds are excluded as they do not generate cash disbursements prior to maturity and are not included in the calculation of covenants. Detailed information on the group's financial structuring is available in previous financial presentations and in the 2024 URD.

[5] For usual administrative reasons relating to the signing of the contract, this order is included in the order intake for the 3^rd quarter.