Exosens H1 Profit Beats Forecasts as Defense Demand Drives Growth

Exosens (EPA: EXENS) reported stronger-than-expected first-half fiscal 2026 profitability, supported by robust demand for its defense imaging technologies, although revenue came in slightly below market expectations. Investors reacted cautiously, sending the company's shares down about 4.5% after the earnings release.

The French imaging and detection technology company posted adjusted EBIT of €71 million, exceeding analyst expectations of €67 million. The result represented a 19.2% year-over-year increase, with an adjusted EBIT margin of 28.4%, highlighting continued operational efficiency.

First-half revenue reached €253 million, just below the €254 million consensus estimate but still 11.4% higher than the same period last year. Second-quarter revenue totaled €130.5 million, narrowly missing forecasts of €131.6 million, while delivering 10.3% like-for-like growth.

Exosens' Amplification division generated €176 million in revenue, growing 10% from a year earlier as production capacity continued to expand to meet customer demand. Meanwhile, the Detection & Imaging segment delivered €77 million in revenue, up 14.6%, driven by strong demand for drone and counter-drone imaging solutions amid increasing global defense spending.

The company's profitability also exceeded expectations at other levels. Gross margin reached 51.3%, outperforming the 50.3% consensus estimate, while adjusted EBITDA climbed to €83.6 million, ahead of the expected €82 million, resulting in a solid 33% EBITDA margin.

Looking ahead, Exosens reaffirmed its fiscal 2026 guidance, projecting revenue between €520 million and €540 million and adjusted EBITDA of €168 million to €178 million. Management said it now expects results to land toward the upper end of both ranges, signaling confidence in continued business momentum. The high end of its EBITDA forecast exceeds the current analyst consensus of €169 million, suggesting room for upward estimate revisions.

To support rising demand, particularly in defense applications, Exosens also announced plans to triple its thermal camera production capacity during fiscal 2026, accelerating from its earlier goal of doubling output. Although thermal camera products accounted for less than 7% of fiscal 2025 revenue, the company expects the rapidly expanding drone market to become a meaningful long-term growth driver. Production capacity in the Amplification business is also being increased as customer demand continues to outpace supply.