If Iran Blocks Oil Lifelines, Who Makes the Most Money? A French "Minesweeper Drone" Family Enters the Billionaire Ranks

French defense technology giant Exail Technologies is becoming one of the most notable beneficiaries of the global arms expansion wave.

In the face of joint invasion by the US and Israel, and Iran’s threat to mine the Strait of Hormuz, this French company specializing in underwater drones has quickly entered the naval procurement radar of various countries. Its stock price has surged by over 700% since mid-2024.

The worsening situation has directly fueled market enthusiasm for Exail, with the company’s stock reaching a record high last week.

Exail CEO Raphaël Gorgé said the company continues to receive capability assessments and procurement inquiries from multiple parties. “If I had 12 systems available for immediate delivery, it wouldn’t be hard to find buyers.”

As the market value of the Gorgé family, which holds about 41% of Exail, rises, their net worth has climbed to approximately $1 billion, making them members of the Bloomberg Billionaires Index. This week, the family’s holding company took advantage of the trend to cash out, selling €75.6 million worth of stock.

Hormuz Crisis Sparks Procurement Demand

Exail’s core product is a top-tier mine-hunting drone system, costing about €500 million (approximately $580 million) per unit, with an 18-month delivery cycle. The system consists of an unmanned surface vessel carrying a fleet of underwater drones that autonomously detect and destroy mines in minefields. Belgium and the Netherlands Navy were the first to purchase this system in 2019, with a joint order of over 1,000 drones.

Before Iran’s threat to mine the Strait, Exail had already been accumulating orders.

According to Gorgé, the UAE—under ongoing pressure from Iran threats—placed an order with Exail more than a year ago. The company’s stock price truly began to soar after a €400 million mine-hunting drone order from an unnamed navy early last year.

Exail’s competitors in underwater drones include larger groups such as France’s Thales SA, Sweden’s Saab AB, and Norway’s Kongsberg Gruppen ASA.

European Defense Restructuring Creates SME Winners

Exail’s rise reflects a deep transformation in Europe’s defense industry. After Russia’s invasion of Ukraine in 2022, European countries significantly increased their defense spending, highlighting demand for mine clearance in the Black Sea; meanwhile, doubts about the durability of US security commitments have also driven Europe to boost autonomous defense investments.

Jean-Francois Delcaire, fund manager at Paris-based HMG Finance, said, “Global rearmament is a major trend, already reflected in soaring stock prices, indicating solid outlook expectations. However, defense contract execution carries risks, and implementation takes time.”

This year, three European defense contractors have gone public, and the Franco-German joint tank manufacturer KNDS NV is preparing for a large IPO. Exail’s market cap, which had long been below €500 million, has surpassed €2.5 billion this month.

Acquisition and Integration Build Technical Foundations

Exail’s technological accumulation did not happen overnight. Raphaël Gorgé joined the family business in 2004 and led the company’s most significant strategic acquisition—purchasing civilian marine drone manufacturer iXblue for €410 million in 2022—and merged it with the group’s own military marine robotics business, partly financed by UK private equity firm ICG Plc.

This move proved highly effective. Post-merger, Exail’s profits nearly doubled, with demand for sonar and anti-interference navigation systems boosting performance, and backlog orders rising sharply.

The family’s business footprint continues to expand. Jean-Pierre Gorgé, founder of the Gorgé family and father of Raphaël, established the company in 1988. This month, another company under the family completed a nearly €100 million funding round for research and development of small modular nuclear reactors.

High Valuation Risks

Although the stock price fell back to about €129 this week, Exail’s current P/E ratio remains around 71 times expected earnings, more than double its average valuation over the past decade.

François Dossou, stock manager at Sienna Gestion, pointed out that the company still needs to fulfill its existing order backlog. “They have the technical capability, but for a company of this size, execution risk cannot be ruled out.”

Gorgé remains optimistic about the outlook. He expects the order book “to fill more quickly and strongly in the coming months and over the next five to ten years,” and believes that modern warfare is changing—countries are realizing that four frigates with 200 drones are more cost-effective than six frigates, and drones can be delivered within 18 months, unlike traditional equipment that takes five or six years.

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