French electro-optical technology group Exosens reported a more than doubling of net profit from continued operations in 2025, reaching €70.2 million despite a sharp decline in cash reserves. The company's strong performance was driven by surging defense demand, with defense and surveillance markets accounting for 75% of total sales of €468.2 million, up 22.1% from the previous year.

While adjusted EBITDA rose 26.6% to €151.6 million and gross margin expanded to 50%, free cash flow slipped to €57.3 million from €58.7 million as working capital requirements jumped. Capital expenditure excluding capitalized R&D costs increased 25.4% to €36.4 million, while cash and cash equivalents fell to €68.6 million from €117.2 million. The company completed three acquisitions during the year, including infrared camera specialist Noxant and night vision device maker NVLS.

Despite the cash flow pressure, Exosens guided revenue of €520 million to €540 million for 2026, with adjusted EBITDA of €168 million to €178 million. The company's leverage ratio rose to 1.3 times adjusted EBITDA from 1.2 times, with management stating it may temporarily reach around 2.0 times as it pursues acquisitions toward a €1 billion annual revenue target. The board proposed a €0.30 per share dividend for 2025.