Greece's Theon International reports record revenue and 182 percent order growth in 2025.

Theon International Plc reported its preliminary financial results for the year ended December 31, 2025, confirming record revenue and profit in its 28 year history.

On February 16, 2026, the Greek company Theon International Plc reported its preliminary financial results for the year ended December 31, 2025, confirming record revenue and profit in its 28-year history. Order intake increased 182 percent to €1.3139 billion, while revenue rose 25.9 percent to €443.5 million. The company entered 2026 with a backlog of €1.4143 billion and revenue guidance of €570 to €600 million.
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Theon International Plc reported its preliminary financial results for the year ended December 31, 2025, in which order intake increased 182 percent to €1.3139 billion, while revenue rose 25.9 percent to €443.5 million. (Picture source: Theon)

Theon International Plc announced its preliminary results for the twelve months ended December 31, 2025, confirming record revenue and profit in its 28-year history and stating that performance met the upgraded FY 2025 guidance issued in November 2025. The company reported that it entered 2026 with historically high backlog levels, expanded framework agreements extending visibility toward 2029, and a broadened product portfolio following acquisitions and strategic investments completed or finalized around year-end. It also reiterated that small bolt-on acquisitions are envisaged in FY 2026 without the need for a new share capital increase, while maintaining a capital structure supported by the December 2025 rights issue and a €300 million revolving credit facility signed in October 2025.

The €150 million rights issue was supported by majority shareholders, who subscribed pro-rata for approximately €107 million of the offering. Order intake for FY 2025 reached €1,313.9 million, compared with €466.0 million in FY 2024, representing a 182.0 percent increase driven in part by a firm order routed through OCCAR for night-vision man-portable equipment for the German Armed Forces, identified as the largest single order in the company’s history in this segment. Revenue increased to €443.5 million from €352.4 million, up 25.9 percent, while adjusted EBITDA rose to €120.1 million from €93.3 million and adjusted EBIT to €116.1 million from €90.8 million, corresponding to a 26.2 percent adjusted EBIT margin versus 25.8 percent in FY 2024.

In the fourth quarter alone, revenue amounted to €164.2 million versus €129.8 million a year earlier, adjusted EBIT was €46.7 million versus €38.6 million, and the adjusted EBIT margin stood at 28.4 percent versus 29.7 percent. The company linked profitability to disciplined expense management, operational leverage, and improved performance at Harder Digital following active management measures. The group indicated that profitability margins exceeded internal expectations during the year. Backlog and option metrics reflected the expansion of long-term agreements, with soft backlog reaching €1,414.3 million at December 31, 2025, compared with €654.0 million a year earlier, and options totaling €856.4 million versus €298.2 million.

The company stated that soft backlog now provides visibility beyond the typical 18-month horizon and, in some cases, spans to 2029, supported by longer-term framework agreements with key customers and expected orders for platform-based systems that follow longer equipment life cycles. Net working capital absorption declined to 41.0 percent of revenues from 44.2 percent, while capital expenditure increased to €18.6 million from €10.7 million, and cash conversion, defined as (adjusted EBITDA minus capex) divided by adjusted EBITDA, stood at 84.5 percent versus 88.5 percent. Net cash at year-end was €126.9 million compared with €41.9 million at December 31, 2024, reflecting operating cash flow and the net proceeds of €147.7 million from the €150 million rights issue completed in December 2025. 

On a pro-forma basis, including the rights issue proceeds and deducting €69.9 million for the acquisition of Kappa Optronics and €268.7 million for the 9.8 percent stake in Exosens, the group would have reported net debt of €211.7 million with leverage of 1.8x last-twelve-month EBITDA. The acquisition of Kappa Optronics GmbH, completed following an August 4, 2025, agreement for an enterprise value of €75 million, adds about 200 employees, including 60 engineers, and was projected to generate more than €37 million in revenue in fiscal year 2025 with EBITDA of about €8 million. Kappa’s integration is intended to expand production capacity for land and aviation electro-optics, including driver vision systems and visual components for MRTT aircraft, and is expected to contribute approximately €40 million to FY 2026 revenues.

The 9.8 percent stake in Exosens was signed subsequent to the reporting period and is intended to secure a long-term supply of 16 mm image intensifier tubes and foster collaboration on new ITAR-free technologies. The industrial footprint expanded across Europe and the United States during 2025, including the creation of Theon Belgium as a wholly owned subsidiary with a 420 square meter production site in Zaventem and a liaison office in Brussels, designed to support export-oriented electro-optical systems and local customer needs and expected to employ up to 12 staff initially. The group invested €1.1 million for a 10 percent stake in Andres Industries AG with an option to increase to 24.99 percent within two years for a total of €4.5 million, and relocated its German headquarters to Berlin within the Andres premises to support operational alignment and maintenance activities.

A strategic investment was also completed in Baltic Photonics in Riga to strengthen access to optics and photonics manufacturing, and capacity increases were implemented at Harder Digital and Exosens. In the United States, following Direct Foreign Investment approval on October 16, 2025, the company confirmed the establishment of a facility in Reston, Virginia, in partnership with Kopin Corporation to produce and integrate thermal and augmented vision systems incorporating Kopin’s DarkWave module. The expansion of the global footprint also included a more meaningful operational presence in Denmark, alongside Latvia and South Korea. Contract activity during 2025 included an OCCAR agreement for the supply of 100,000 Mikron night vision goggles to the German Armed Forces valued at approximately €500 million, with Belgium converting an option into a firm order for 4,000 units, and involving 200,000 compact 16 mm image intensifier tubes produced by Exosens.

In December 2025, a contract revision between OCCAR and the THEON/Hensoldt consortium formalized what the company identified as the largest single procurement of night vision goggles in the history of a European NATO member. A separate OCCAR contract signed on September 24, 2025, covered the IRIS-C thermal clip-on system for Germany and Belgium with an initial value of about €50 million and an embedded option of around €150 million, with deliveries mainly scheduled for 2026 and 2027 and maintenance handled by Andres Industries. IRIS-C is designed as a clip-on compatible with both Theon and third-party night vision devices, providing fused intensified and thermal imagery and, when integrated with the Smart Battery Pack or Smart Gateway, augmented reality overlays and connectivity to battle management systems, including ATAK.

The product portfolio also includes Orion fused binoculars, THEA head-up display, Thermis thermal sights in Medium, Long, and Extra-Long Range variants, and the TALOS and TRITON ISR electro-optical families for land and maritime surveillance across patrol boats, OPVs, corvettes, and frigates. Under the THEON NEXT initiative, the company aims to increase the share of digital, thermal, and augmented systems from below 10 percent of revenue in 2025 to about 20 percent in 2026 and toward 50 percent in the mid-term, while maintaining demand for night vision products where penetration remains limited in many markets.

For FY 2026, revenue guidance is set at €570–600 million (an expected revenue increase of approximately 30 percent compared with FY 2025) with organic growth above 15 percent per annum supported by bolt-on M&A, adjusted EBIT margins in the mid-twenties, capex of €30 million including construction of a new facility in Greece for vehicle-mounted stabilized systems following a first order from a leading armored vehicle manufacturer, and a dividend payout ratio of 20–30 percent of net income. The €30 million capex guidance represents approximately 4 percent of projected revenue.

For FY 2025, the company maintained a dividend distribution equivalent to 35 percent of net income, while the FY 2026 payout ratio is guided at 20 to 30 percent. More than 20 percent of this projected growth is expected to be organic, with the remainder driven by consolidation effects, including Kappa Optronics. The company stated that this organic growth trajectory exceeds the expected annual growth rate of defense spending among major NATO member states. Following foundational work undertaken during 2025, the company was accepted as a member of the United Nations Global Compact on January 6, 2026. 

Order intake is projected to more than cover deliveries with a book-to-bill ratio above 1.0x, and the company stated that acceleration of investment in Harder Digital was announced in January 2026 to respond to global demand for image intensifier tubes exceeding current supply. Theon reiterated its medium-term ambition to reach €1 billion in revenue ahead of the original 2030 projection and to expand from leadership in night vision into the broader defense optoelectronics sector, supported by more than 250,000 systems in service in 72 countries, including 26 NATO members, and a listing on Euronext Amsterdam since February 2024.

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.