Exosens lifts capacity plans as defense demand drives 23% revenue gain

Exosens (OTC:EXOSF) on Monday said it will nearly double its previously announced production expansion after reporting a 23% increase in revenue for the first nine months of 2025, supported by higher defense spending and sustained orders for night-vision technology from NATO countries.

The French defense and imaging technology group now plans to boost its global manufacturing capacity by 40% by 2027, up from the 25% target announced earlier this year, following an additional €17 million investment in Europe. The expanded plan brings total 2025 investments to €37 million.

Chief Executive Jérôme Cerisier said the company decided to increase its production plans “in response to sustained demand,” as militaries continue to modernize surveillance and optical systems. Exosens (OTC:EXOSF) expects night-vision components to remain in short supply through 2027, as NATO members work to meet their procurement targets amid a broader increase in defense budgets.

For the nine-month period ending September 30, Exosens (OTC:EXOSF) recorded revenue of €327.8 million ($381.5 million), up from €266.2 million a year earlier. Growth was led by a 20.6% rise in the Amplification segment, which produces image-intensifier tubes used in night-vision goggles, and a 26.2% increase in the Detection & Imaging division, supported by acquisitions and steady demand from defense and nuclear markets.

The company cited strong orders from European and allied militaries, with recent contracts including a program to supply 17,000 monoculars to the Spanish Army. It also highlighted demand linked to emerging technologies such as drone and counter-drone systems.

The expansion comes as NATO governments accelerate rearmament plans in response to heightened geopolitical tensions. At a June summit, member states agreed to target defense spending equivalent to 3.5% of GDP for core programs, compared with the previous 2% benchmark.

Exosens (OTC:EXOSF) said it remains on course to meet its 2025 financial targets, forecasting full-year revenue growth in the high-teens and adjusted EBITDA growth in the low-twenties.

The company also confirmed plans to divest its loss-making Microwave Amplification unit under an asset purchase agreement expected to close by early 2026, a move intended to focus resources on higher-margin activities in amplification, detection and imaging.

Full-year 2025 results are scheduled for release on Feb. 23, 2026.