Theon International Plc announced first‑half 2026 results that beat consensus on both revenue and earnings. Revenue reached EUR 248.7 million, up 35.4% year‑over‑year, with organic growth of 24.7%. Adjusted EBIT climbed 38% to EUR 65.1 million, translating to an adjusted EBIT margin of 26.2%, a 40‑basis‑point improvement from the prior year. Adjusted EBITDA rose 42% to EUR 70 million, yielding a 21.1% margin, up 130 basis points.
Net income more than doubled year‑on‑year to EUR 74.3 million. Order intake increased 38% to EUR 232.5 million, while the soft backlog stood at EUR 1.46 billion, complemented by EUR 902 million of contractual options, bringing total soft backlog plus options to roughly EUR 2.36 billion. Return on equity was 37% and the current ratio remained strong at 3.0. Capital expenditure in the period was EUR 11.8 million (4.7% of revenue) and R&D expense EUR 5.6 million (2.3% of revenue). Operating cash flow totaled EUR 30.7 million, delivering a cash conversion rate of 83.2%.
On the earnings per share front, adjusted EPS of $0.2813 topped the consensus estimate of $0.2762, a 1.85% beat. Revenue in dollar terms was $128.6 million versus $126.18 million expected, a 1.92% beat. After the release, shares rose 1.84% to $33.18, within a 52‑week range of $23.56 to $39.50 and up 43.1% over the past year.
Guidance was reaffirmed at EUR 600 million for full‑year 2026 revenue, while the EBIT margin target was lifted to at least 26% for the full year and the medium term. The company reiterated a medium‑term organic growth ambition of 15% annually, excluding the impact of acquisitions.
The product mix continued to be dominated by night‑vision systems (about 85% of H1 revenue). Non‑night‑vision offerings accounted for roughly 15% of revenue and are projected to reach 19‑20% by year‑end.
Geographically, Europe contributed about 80% of revenue, the Americas 6%, and the rest of the world 14%.
Strategic activity remained robust. Theon agreed to acquire an 80% stake in French unmanned‑vehicle systems firm Merio, with closing expected in Q4 2026. An acquisition of HGH for an enterprise value near EUR 300 million is slated for early Q1 2027 and is expected to be margin‑accretive within the first year. A memorandum of understanding with Safran was signed to create a joint venture for UAV gimbals, with Theon holding 51% and production partly in Greece; the JV aims to become the global leader in gimbals by the end of 2027. The company invested EUR 3 million in U.S. AI venture Twin Prime and entered a JV to develop bespoke AI solutions. Expansion plans in the United States involve roughly $30 million of investment over the next two to three years across facilities in Virginia and Oregon.
The addressable market was said to have expanded from about EUR 4 billion to EUR 8 billion through recent deals. Theon paused its board‑seat pursuit at Exosens, deeming its current stake sufficient and focusing on the partnership.
Financing arrangements include a EUR 400 million revolving credit facility secured in October 2025 and a new EUR 325 million five‑year term loan signed in September 2026. Pro‑forma leverage is expected to rise temporarily to around 3‑times net debt after the HGH and Merio transactions, with a planned reduction to below 2.5× in 2027 and under 2× in 2028.
CEO Christian Hadjiminas emphasized the expanded market opportunity, strengthened backlog and sustained profitability, while CFO Dimitris Parthenis noted that performance remains firmly aligned with medium‑term guidance and highlighted strong cash generation and operating leverage.
