Theon International reveals new 2026 expansion plan after major deals in Europe and the U.S..

Theon International Plc announced updated guidance of €435–445 million in revenue for FY 2025 and introduced a new FY 2026 target of €570–590 million. The company cited expected organic growth, the planned acquisition of Kappa Optronics, and expanded defense program deliveries across Europe as key drivers.

On November 3, 2025, the Greek company Theon International Plc released its Q3 2025 trading update, confirming revised full-year guidance and setting a new 2026 revenue objective of €570–590 million. Theon stated that this outlook reflects higher order intake, integration of new industrial assets in Germany and Belgium, and the planned consolidation of Kappa Optronics within its defense optronics portfolio. The company will present detailed targets and execution plans for its THEON NEXT strategy at its Capital Markets Day in Athens on November 6.
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Theon International raised its 2025 revenue guidance to €435–445 million, set a 2026 target of €570–590 million backed by acquisitions, new contracts, and expanded European production, and outlined plans to sustain double-digit growth through its THEON NEXT strategy. (Picture source: Theon International)

In its Q3 2025 Trading Update, Theon announced a revised full-year revenue guidance of €435–445 million for FY 2025 and, for the first time, set a revenue target of €570–590 million for FY 2026. The company indicated that the 2026 target includes at least 20% organic growth and approximately 30% total growth when accounting for the pending acquisition of Kappa Optronics GmbH. Theon stated that these targets align with its multi-year THEON NEXT strategic plan, which focuses on scaling its digital, thermal, and augmented-reality optronics capabilities across its global portfolio. The update was presented as a transition between a strong 2025 financial year and an expanded 2026 operational scope supported by capacity investments, technology partnerships, and new program deliveries. Theon confirmed that the FY 2025 guidance includes a 35% dividend distribution of net income, with a reduced 20–30% target payout for FY 2026. A Capital Markets Day in Athens is scheduled for 6 November 2025 at 15:00 local time, during which Theon will provide additional details about THEON NEXT’s structure and execution plan. Presentation materials will be made available following the event.

For the first nine months of 2025, Theon reported order intake of €232.7 million, representing a 92.3% year-on-year increase. The company also recorded an additional €150 million of options with a high probability of conversion over the coming years. Revenue for the same period reached €279.3 million, an increase of 25.5%, which the company described as its highest nine-month turnover to date. Adjusted EBIT was €69.4 million, up 32.8%, corresponding to a 24.8% adjusted EBIT margin that, while higher than the previous year, was slightly reduced compared to the first half of 2025 due to the ongoing dilutive impact of Harder Digital at the group level. Earnings per share stood at €0.70, marking a 25% increase, while capital expenditures totaled €12.5 million. As of the end of September 2025, Theon’s soft backlog stood at €591.7 million, compared with €622.2 million at the end of June. Management expects order intake to accelerate during Q4 in line with typical seasonal trends, further supporting the transition toward 2026 growth objectives. The combination of order intake, backlog, and option value forms the base for production and delivery planning over the next twelve months.

The company reported net working capital of €177.6 million at the end of Q3, an increase in absolute value but a smaller proportion of last-twelve-months revenue compared to September 2024. Theon attributed this rise solely to higher inventories required to sustain strong Q4 delivery schedules. Net cash, excluding a €3.5 million share buyback liability, was €0.5 million compared with €38.1 million in June, reflecting the impact of strategic investments made to expand technology access and industrial capabilities. Treasury share purchases totaled 292,751 shares at an average price of €27.85, equivalent to approximately 0.42% of the company’s issued capital. To strengthen liquidity and refinance short-term debt, Theon signed a €300 million senior facility agreement in October 2025, aimed at improving financial flexibility. The company indicated that this facility would be used to support working capital requirements, acquisitions, and potential future investments. The financial structure adjustments align with the company’s plan to maintain operational funding capacity while preserving capital discipline across its European and transatlantic projects.

Operational developments in Q3 focused on expanding production capacity, securing critical supply chains, and reinforcing technology partnerships across Europe. Theon completed a strategic investment in Baltic Photonics in Riga, Latvia, to enhance its access to advanced optics and photonics manufacturing. It also inaugurated a new production facility in Belgium and opened a liaison office in Brussels to strengthen participation in European Union and NATO defense programs. The group invested €1.1 million for a 10% equity stake in Andres Industries with an option to increase to 24.99%. Theon also reached an agreement to acquire 100% of Kappa Optronics GmbH, based in Germany, for an enterprise value of €75 million, with the transaction expected to close by year-end pending regulatory approvals. This acquisition is intended to expand Theon’s aviation and land-based optronics capabilities and further integrate German industrial capacity within its portfolio. These Q3 initiatives were complemented by production network optimization and incremental capacity adjustments to meet growing demand for imaging, targeting, and night-vision systems across multiple defense contracts.

Under its THEON NEXT initiative, the company launched several new strategic technology partnerships aimed at expanding its global optronics portfolio. Theon invested $15 million in the U.S.-based Kopin Corporation to strengthen micro-display and subsystem expertise in the United States and the United Kingdom. It also invested €5 million in Finland’s Varjo to develop mixed-reality visualization systems for military applications. The group renewed a multi-year supply agreement with eMagin Corporation for OLED micro-displays used in its night-vision and fused optical devices, ensuring supply chain continuity for future production. Additionally, Theon entered into an industrial collaboration with Alereon to co-develop ultra-wideband (UWB) wireless technology intended to improve low-latency communication between soldiers and systems. The company also signed, through the European procurement agency OCCAR, a new contract for next-generation IRIS-C thermal clip-on systems for Germany and Belgium, valued initially at €50 million, with an embedded €150 million option for future orders. These initiatives support Theon’s long-term objective of achieving higher vertical integration and broader geographic coverage within the defense optronics sector.

Subsequent to the reporting period, Theon signed an agreement to purchase a 9.8% strategic stake in Exosens SA, with the transaction expected to close in early Q1 2026 following required notifications. The company stated that this investment would ensure long-term supply continuity for imaging tubes while also fostering future collaboration opportunities. Theon also finalized a multi-year framework agreement with a European NATO member state for the supply of night-vision goggles and IRIS-C systems, valued at more than €300 million, with deliveries expected between 2026 and 2028. In addition, Theon was named among Europe’s Long-Term Growth Champions 2026, recognizing its growth trajectory over recent years. The company emphasized that the framework agreement and new industrial partnerships reinforce mid-term order visibility and production predictability. Management expects these programs to drive a steady revenue contribution into 2026 while sustaining a high utilization rate across the newly expanded facilities in Belgium and Germany. Theon confirmed that these developments are key to bridging the 2025 guidance to the 2026 revenue target.

Theon’s updated guidance and financial targets outlined clear quantitative parameters for growth, investment, and shareholder distribution. FY 2025 revenue is guided at €435–445 million, with capital expenditure expected at approximately €20 million and dividend distribution set at 35% of net income. For FY 2026, revenue is targeted between €570 million and €590 million, with an estimated €30 million in capex and a dividend payout ratio between 20% and 30%. The group’s mid-term ambitions include maintaining a mid-twenties adjusted EBIT margin and sustaining organic growth above 15%. Management stated that the 2025 profit and margin guidance will not be restated until further integration progress is made with Harder Digital, whose contribution remains dilutive but is expected to normalize over time. Theon confirmed that future profitability will depend on delivery mix, production efficiency, and geographic diversification. These financial parameters are designed to ensure stable cash generation while funding growth in high-technology optronics segments across Europe, North America, and Asia.

The Q3 2025 update positions Theon’s 2026 revenue ambition within an expanded operational and technological framework built around multiple European production nodes and transatlantic technology partnerships. The combination of the Belgian facility, the Kappa Optronics acquisition, the Exosens stake, and the Andres Industries participation strengthens the company’s role as a regional and cross-domain optronics supplier. The OCCAR contract for IRIS-C systems and the NATO-member framework agreement provide long-term volume stability, while the Riga photonics investment and UWB wireless collaboration support component-level independence. The new €300 million credit facility, treasury share purchases, and rising capex indicate an active investment phase preceding delivery acceleration in 2026. These measures align with Theon’s objective to sustain its growth trajectory while maintaining financial discipline and technological control. Management will detail the next phases of THEON NEXT at the November Capital Markets Day, outlining how volume growth, integration, and innovation are expected to support the progression from the revised 2025 guidance to the 2026 revenue target.

Written by Jérôme Brahy

Jérôme Brahy is a defense analyst and documentalist at Army Recognition. He specializes in naval modernization, aviation, drones, armored vehicles, and artillery, with a focus on strategic developments in the United States, China, Ukraine, Russia, Türkiye, and Belgium. His analyses go beyond the facts, providing context, identifying key actors, and explaining why defense news matters on a global scale.