THEON INTERNATIONAL PLC (THEON), one of the leading manufacturers of night vision and thermal imaging systems for defence and security applications with a global footprint, has announced its 2023 financial results.

Demonstrating resilience, adaptability, and a commitment to innovation, THEON has achieved great success, exceeding expectations and setting new benchmarks in the industry.

THEON achieved revenues of €218.7 million, an annual increase of 53.0%, with an adjusted EBIT of €56.8 million, corresponding to a margin of 26.0%. In the last 5 years, the company has been growing at an average rate of 50% per year, maintaining its very high level of profitability. THEON’s ever-growing customer base now spans 69 countries worldwide, 24 of which are NATO members.

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Analytically:

• Order intake reached a record €506m for FY2023, an increase of 51.7% compared to FY2022, resulting in a Book-to-Bill ratio of 2.3x. In addition, the order backlog amounted to €540.2 million, corresponding to 2.5 times the 2023 revenue
• Revenue soared to €218.7m in FY2023, reflecting a remarkable 53.1% increase compared to FY2022
• Adjusted EBIT amounted to €56.8m in FY2023, showing a significant increase of 41.3% compared to FY2022 and implying a profit margin of 26.0%, best in class among competitors
• As of December 31, 2023, the company reported a net cash position of €13.9 million, in contrast to a net debt position of €10.9 million at the end of the previous financial year
• Due to the strong operating performance, resilient cash flow generation, and optimistic outlook for 2024, the board intends to propose to the AG a dividend distribution of 40% in relation to the results of financial year 2023, one year earlier than already announced in the IPO Prospectus.

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THEON was founded in 1997 and has since become one of the most important manufacturers of night vision and thermal imaging instruments in the global market. It has a global footprint with offices in, among others, Athens, Nicosia, Arlington, Abu Dhabi, Dubai, and Singapore, as well as 3 manufacturing facilities in Athens, Wetzlar (Germany) and Plymouth (USA).

Through this network of companies, offices, and facilities around the world, THEON has more than 150,000 systems in service with the Armed Forces and Special Forces around the world.

Expanding its presence in the market, THEON announced, before the end of 2023, that Elbit Systems of America has been awarded a five-year, $500 million IDIQ contract to supply Squad Binocular Night Vision Goggle (SBNVG) systems to the Marine Corps of USA (USMC) subcontracted to THEON.

In the same period, THEON signed two framework agreements of up to 7 and 5 years with the NATO Support and Procurement Agency (NSPA) for the supply of thermal systems, while another contract was awarded to a European NATO member state for the systems Extra Long Range THERMIS.

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In December 2023, in a joint venture with Hensoldt the company was invited to the signing ceremony of contract amendment 2.1 (signed on January 27, 2024). This amendment includes 3,500 night vision goggles for Belgium as well as 16,041 night vision goggles and 8,423 head support systems for Germany, which were recently approved by the German Parliament. In addition, the said contract includes an option for up to 50,000 additional night vision goggles for Belgium and Germany.

THEON’s years-long extroverted strategy has enabled the company to capitalize on emerging opportunities and strengthen its competitive advantages. THEON’s exports represent 97% of its total turnover, of which 81% is directed to Europe, 7% to North America and 9% to the Middle East.

The company continues to invest in research and development, conducting more than 400 hours of training, hiring 50% more people in the R&D department, and introducing new innovative products that meet the evolving needs of its customers and market trends, such as TALOS, the first stabilized multi-sensor system officially presented during the DSEI 2023 exhibition in London.

Also read: THEON SENSORS | Sub-manufacturer in $500 million framework contract for night vision binoculars to the US Marine Corps

Investing in innovation, as of 2023 THEON has developed new technologies in the field of image fusion (thermal and night) and augmented reality (AR) systems for the company’s range of portable product solutions, thus offering sophisticated, complete, connected optronic solutions to the modern soldier.

Giving back to society is an integral part of THEON’s corporate culture. Throughout 2023, THEON has actively participated in various CSR initiatives, supporting vulnerable social groups, promoting employee volunteering, managing its environmental footprint, supporting a diverse work environment, increasing female hiring by 4%, but also strengthening the connection between employees and the company.

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THEON has won the Great Place To Work™ certification for 2023, which proves that the company stands out for its corporate culture and working environment. Recently, the company was included in the FINANCIAL TIMES & STATISTA list of the 1000 Fastest Growing Companies in Europe for 2024.

“Throughout fiscal year 2023, we’ve had outstanding performance across multiple undertakings in our industry and we’re proud to have accomplished more than we advocated on the company’s path to IPO.

None of this would be possible without the dedication of our executives, whom I want to thank for their professionalism, quality, and hard work,” Christian Chatziminas, Founder and CEO of THEON, commented.

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