Theon International (THEON) H2 2025 TU earnings summary

Executive summary

• FY 2025 marked a transformative year with record order intake of €1.3 billion, driven by the largest-ever OCCAR contract for night vision equipment for the German Armed Forces and the largest single order in Europe.

• Achieved record revenue and profit for FY 2025, surpassing upgraded guidance and marking the best performance in 28 years.

• Strategic acquisitions and partnerships, including a 9.8% stake in Exosens and full acquisition of Kappa Optronics, expanded the product portfolio and secured supply chains.

• Entered 2026 with strong momentum, a historically high backlog, and an expanded product portfolio.

• Expansion into new geographies and increased investment in R&D and production capacity supported growth and local fulfillment.

Financial highlights

• FY 2025 revenue rose 25.9% year-over-year to €443.5 million; adjusted EBIT up 27.9% to €116.1 million, with a margin of 26.2%.

• Adjusted EBITDA increased 28.7% to €120.1 million; capex rose 73.8% to €18.6 million.

• Net working capital absorption improved by 3.2 percentage points to 41.0% of revenue.

• Net cash at year-end was €126.9 million, bolstered by a €150 million rights issue.

• Dividend payout for FY 2024 was €23.8 million, representing 35% of net income.

Outlook and guidance

• FY 2026 revenue guidance is €570–600 million, with organic growth targeted above 15% annually, supported by bolt-on M&A.

• FY 2026 revenue expected to grow 30% over FY 2025, with over 20% organic growth and the remainder from Kappa Optronics consolidation.

• Medium-term ambition is to reach €1 billion in revenue, maintaining mid-twenties EBIT margins.

• Revenue from new digital products expected to more than double in FY 2026, reaching 20–25% of total revenue.

• FY 2026 capex guidance set at €30 million, including new facility construction in Greece.