PRESS RELEASE
Bloomberg (THEON:NA) / Reuters (THEON.AS)
5 May 2026 -- Theon International Plc (THEON) publishes its Q1 2026 Trading Update. The results and activity reflect another period of consistent delivery on promises, with THEON remaining highly confident in its FY 2026 Guidance and Medium-Term Targets.
Theon has entered Q2 2026, actively pursuing actively pursuing numerous opportunities across multiple areas to sustain high organic growth, in line with its Medium-Term organic growth commitment of above 15%. THEON is confident in maintaining its Book-to-Bill Ratio of above 1.0x and strong backlog, with structural growth trends and the move towards longer-term framework agreements to provide greater visibility than historically.
In parallel, inorganic growth contributes to THEON's growth trajectory; Monday's announcement of MERIO is the latest development, with an active pipeline of acquisitions and strategic partnerships expected to be finalized throughout the year.
Financial Summary
EURm Q1 2026 Q1 2025(1) Change ------------------------- ---------- ---------- --------- Order intake 70.0 117.9 -40.6% ------------------------- ---------- ---------- --------- Revenue 120.1 90.8 +32.3% ------------------------- ---------- ---------- --------- Adjusted EBITDA 31.8 24.7 +28.5% ------------------------- ---------- ---------- --------- Adjusted EBIT 30.0 23.8 +26.2% ------------------------- ---------- ---------- --------- Adjusted EBIT Margin 25.0% 25.3% -0.3 p.p. ------------------------- ---------- ---------- --------- Earnings Per Share (EPS) EUR0.69(2) EUR0.25 +175.3% ------------------------- ---------- ---------- --------- NWC Absorption (% of LTM Revenues) 41.1% 41.1% +0.0 p.p. ------------------------- ---------- ---------- --------- Capex 3.9 3.3 +15.6% ------------------------- ---------- ---------- --------- % Cash Conversion(3) 87.8% 86.5% +1.3 p.p. ------------------------- ---------- ---------- --------- EURm 31 Mar-26 31 Dec-25 Change ------------------------ --------- ---------- ------ Soft Backlog 1,420.3 1,414.3 +0.4% ------------------------ --------- ---------- ------ Options on Soft Backlog 896.9 856.4 +4.7% ------------------------ --------- ---------- ------ Net Debt/ (Cash) 228.2 (126.9)(4) n/a ------------------------ --------- ---------- ------
(1) Reflects a change in accounting policy to include the Group's share of profits from core equity- accounted investees within operating profit, adopted in Q2 2025 - effective from 1 January 2025.
(2) Net income and EPS of Q1 2026 include the impact of the mark--to--market valuation of our investment in Exosens, which is classified as a financial asset measured at fair value through profit or loss.
(3) Defined as (Adjusted EBITDA - Capex) / Adjusted EBITDA
(4) Includes net proceeds of EUR147.7 million from the rights issue offering completed in December 2025
Key Highlights
Financial Highlights
-- Order intake reached EUR70m, down c.40% year-on-year, primarily due to
seasonality. In addition, a total of EUR40m in options have been added,
contributing to the Group's future potential. Year--to--date order intake
amounts to EUR102m, with a very good mix of NVGs and the new digital
products, while accelerated order intake is expected in the coming
quarters.
-- Revenues increased to EUR120.1m, representing 32.3% growth compared to Q1
2025, reflecting the Group's ongoing momentum. THEON continues growing
faster than the addressable market, while KAPPA is contributing to
top-line growth and supporting accelerated entry in the Platforms-based
market.
-- Adj. EBIT Margin of 25% reflects high resilience and still best-in-class
margins despite the integration of new businesses.
-- Soft Backlog of EUR1,420m reflecting the consolidation of Kappa Optronics
GmbH. Despite high growth in Q1, backlog remains stable. Exercise of
options is expected to have significant contribution to order intake and
backlog in 2026.
-- EPS higher by 189%, reinforced by the appreciation of strategIc stake in
Exosens.
-- Balance sheet remains strong, with leverage (Net Debt/LTM EBITDA) of 1.8x
and cash generation providing headroom to support meaningful investment
in organic growth (capacity, geographical footprint, local fulfillment,
and product development) as well as further small strategic bolt-on
acquisitions to continue being at the cutting-edge of technological
advancements.
Operational and Strategic Highlights
-- Continued improving performance by Harder Digital, supported by
acceleration of investment, to increase product quality towards average
FOM >2,000 and boost annual capacity output of Gen III 18mm tubes by >20%
in FY 2026 compared to FY 2025.
-- Official opening of THEON Belgium's new state-of-the-art product facility
in Zevantem, further expanding capacity and European footprint.
-- As communicated during the FY2025 earnings call, THEON expects to be
ready to introduce its first integrated visual augmentation system
prototype under the ARMED NEXT initiative before the end of 2026, much
faster than what was orginally communicated during the CMD.
-- Post period-end, strategic agreement signed with Rheinmetall marking a
highly significant milestone in THEON'S expansion into platform-based
products, with platform products targetted to represent 20% of group
revenues in the medium-term.
Corporate Highlights
-- Completed previously announced acquisitions in Exosens (EUR268.7m, with
the 9.8% stake having been secured at EUR54.0 per share) and Kappa
Optronics (EUR69.9m, with Kappa expected to contribute c. EUR40m to group
revenues in FY 2026).
-- Exercised convertible loan option in Varjo Technologies Oy, committing an
additional EUR5m (taking total investment to EUR10m).
-- Post the period-end, completed the acquisition of a 30% equity interest
in the holding company of ShockEOS which has already resulted in the
introduction of the PHYLAX system. THEON intends to exercise its option
to acquire a majority stake in the company in the coming quarters.
-- Accepted as a member of the United Nations Global Compact (UNGC) from
January 2026, reflecting commitment to aligning with the Ten Principles
of the UNGC and dedication to the advancement of the UN Sustainable
Development Goals (SDGs).
-- Included in the Amsterdam Mid-Cap $(AMX)$ Index, and ranked among Europe's
Fastest Growing Companies by The Financial Times for the third
consecutive year.
-- Earlier this week, entered into an exclusive agreement with the sole
shareholder of Merio SAS (MERIO), RPL Développement, to acquire
upfront an 80% stake of MERIO. The conclusion of the transaction is
subject to consummation of long-form documentation and customary closing
conditions, including regulatory approvals.
The full Q1 2026 Trading Update is available on the Company's website and can be found here
Group Outlook
Guidance remains unchanged, and is per the below:
FY 2026 Guidance Mid-Term Targets
-------------------- --------------------------- ---------------------------
Revenue EUR570-600m Organic Growth >15% per
annum, supported by bolt-on
M&A
-------------------- --------------------------- ---------------------------
Adjusted EBIT Margin Mid-twenties
-------------------- --------------------------------------------------------
Capex EUR30m c.4% of Revenue
-------------------- --------------------------- ---------------------------
Dividend EUR24.4 m proposed at 20-30% of Net Income
forthcoming AGM (30% of FY
2025 Net Income)
-------------------- --------------------------- ---------------------------
Christian Hadjiminas, Founder and CEO of THEON, stated: "Q1 2026 demonstrates once again the resilience, diversification and huge growth potential of our business. While order intake was softer year-on-year due to market seasonal patterns and phasing of contracts, momentum is building and strong inflow of orders is expected over the coming quarters. On our 32% revenue growth, this represented both increased product and geographic diversification, with platform products now contributing to our top line, in line with our commitment to our investors. On M&A, we remain highly active, our agreement to acquire 80% of MERIO is a strategically significant move, giving THEON a direct presence in the drone and light aerial platform segment as warfare tactics continue to evolve rapidly. Looking ahead, we will continue to advance our technological capabilities and execute on our growth strategy, progressing toward our EUR1 billion revenue target by 2029."
For inquiries, please contact:
Investor Relations Media Contact Nikos Malesiotis Elli Michou E-Mail: ir@theon.com E-Mail: press@theon.com Tel: +30 210 6772290 Tel: +30 210 6728610
About THEON GROUP
THEON GROUP of companies develops and manufactures cutting-edge night vision and thermal imaging systems for Defense and Security applications with a global footprint. THEON GROUP started its operations in 1997 from Greece and today occupies a leading role in the sector thanks to its international presence through subsidiaries and production facilities in Greece, Cyprus, Germany, the Baltics, the United States, the Gulf States, Switzerland, Denmark, Belgium, Singapore and South Korea. THEON GROUP has more than 280,000 systems in service with Armed and Special Forces in 72 countries around the world, 26 of which are NATO countries. RNATIONAL PLC has been listed on Euronext Amsterdam (AMS: THEON) since February 2024.
www.theon.com
Attachment
-- Theon Q1 26 Trading Update vF
(END) Dow Jones Newswires
May 05, 2026 16:09 ET (20:09 GMT)
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