Theon International Plc (THEON) has reported its financial results for the third quarter and nine months of 2026, for the period ended 30 September 2026, recording strong financial performance and steady progress in delivering on its strategic priorities.
At the same time, the company remains on track to meet its recently upgraded guidance for the full 2026 financial year.
THEON continued its strong growth trajectory in the third quarter of 2026, following strong performance in the second quarter, achieving revenue growth of 40.4% and an Adjusted EBIT Margin of 26.2%, among the highest in the sector. This performance reflects both persistently strong demand and THEON’s broader strategic platform, which is strengthening the company’s presence in new market segments with strong growth prospects.
Activity and new orders are expected to accelerate further in the final quarter of the year, in line with the seasonality typical of the sector and the historical pattern of THEON’s business. This momentum is supported by the company’s flexibility and ability to respond quickly to customer needs. At the same time, THEON sees significant new opportunities in key geographic markets, as well as growing prospects for the newer products and technologies in its expanded ecosystem.
THEON reaffirms its guidance for the 2026 financial year, which was upgraded last September when the Group published its first-half 2026 results.
Specifically, the company expects revenue of about €600 million, at the top end of its previous guidance range, and an Adjusted EBIT Margin of around 26%, which is now the new baseline. THEON also expects capital expenditure of about €25 million for the 2026 financial year, compared with its previous estimate of about €30 million. The difference is due solely to the timing of some planned investments, with the relevant amount shifted to the 2027 financial year. All key investment projects are progressing as planned, including the new Athens facility for ISR products, which is expected to become operational in the second quarter of 2027, and the investment to expand and upgrade Harder Digital. In addition, THEON has upgraded its medium-term organic growth target to annual revenue growth of more than 20%, from its previous estimate of more than 15%. This reflects the company’s continued increase in commercial activity, improved visibility on future revenue and broader growth opportunities arising from its evolving product portfolio.
THEON has also completed its acquisition of MERIO SAS (Merio), while the process to complete the acquisition of HGH Systèmes Infrarouges (HGH) is progressing as planned.
Key Highlights
Financial Developments
• New orders rose 22.5% to €285.2 million in the first nine months of 2026 compared with the same period in 2025, confirming strong demand for THEON’s expanded portfolio, which includes night-vision systems, digital man-portable systems and ISR products.
• The Group’s book-to-bill ratio stood at 0.74x in the first nine months of 2026, with the expected acceleration in new orders in the fourth quarter supporting the Group’s target of about 1.0x for the 2026 financial year.
• Revenue growth momentum continued, with revenue up 37.1% to €382.8 million. in the first nine months of 2026 compared with the first nine months of 2025. This growth is supported by the increasing diversification of THEON’s product portfolio and Kappa’s growing contribution, lifting revenue from products outside night vision to 17.6% in the first nine months of 2026 (first nine months of 2025: 7.1%).
• The Adjusted EBIT Margin was 26.2%, remaining high for the sector and slightly above the 2026 financial year guidance. This strong profitability was maintained alongside the launch of new products and continued investment across the Group’s businesses.
• The backlog stood at €1,377.0 million, slightly below its level in June 2026, while new orders are expected to accelerate further in the fourth quarter of 2026.
• Net working capital absorption stood at 42.7% of trailing 12-month revenue, lower than in September 2025, with the elevated level mainly reflecting higher inventories to support a strong fourth quarter.
• The balance sheet remains strong, with financial leverage (net debt / trailing 12-month EBITDA) of 1.6x at 30 September 2026 and strong cash generation to fund investments that support organic growth.
Operational and Strategic Highlights
• THEON continued to make strong progress integrating its recent acquisitions in the third quarter of 2026, advancing the integration of its Business Development and Research & Development (R&D) activities. This strengthens the Group’s ability to offer a comprehensive global electro-optical platform.
• The acquisition of HGH is undergoing the required approval process and remains on track for completion towards the end of the fourth quarter of 2026.
• Demand for THEON’s leading night-vision solutions remains strong, supported by ongoing programmes to modernise the equipment of armed forces in NATO member and allied countries. This momentum further strengthens the Group’s leading position in a market with stable growth prospects.
• THEON continues to expand its technology portfolio and customer base through the ongoing development of new products and the growing contribution of recent strategic investments to the Group’s results and activities.
Corporate Highlights
• In the third quarter of 2026, THEON further strengthened its strategic position in Harder Digital, increasing its stake from 60% to 65%, and committed an additional €15 million to support future growth. The investment is progressing as planned, with Harder Digital tubes already being used in recent THEON orders.
• In September, the Group secured a new syndicated loan of up to €325 million to finance the acquisition of HGH, while maintaining its financial flexibility.
Significant Events After the Reporting Period
• THEON secured new contracts for night-vision systems worth about €45 million from two European NATO member countries, subject to the usual final approvals from the relevant authorities. Deliveries are expected to begin in 2026.
• THEON completed the acquisition of an 80% stake in MERIO and has already secured the first order, worth about €5 million, for MERIO’s UAV (unmanned aerial vehicle) solutions, confirming the first Business Development synergies.
2026 Financial Year Guidance and Outlook
THEON is now targeting medium-term organic revenue growth of more than 20% a year, supported by strong commercial momentum, improved visibility on future revenue and a significant expansion of its addressable market as a result of its enriched product portfolio.
Christian Hadjiminas, Founder and Chief Executive Officer of THEON, said:
«We are very pleased to report strong results once again, confirming our continued momentum and reflecting both the positive outlook for the sector and the strength of our business model and strategy. In the coming months, we expect to reach important milestones, including the launch of new products and completion of the HGH acquisition, which is progressing in line with the announced timetable. Given the sector’s usual seasonality and our proven ability to respond quickly to our customers’ needs and orders, we expect to finish 2026 strongly, with positive momentum continuing into early 2027. Our performance in 2027 is expected to be further strengthened by our expanded strategic and technology platform, as well as our growing presence in new, fast-growing market segments.»