THEON INTERNATIONAL PLC (Euronext Amsterdam, AMS: THEON) announces its financial results for the period nine months ended on September 30, 2024.

Financial Performance

THEON continued its growth and profitability in the 9 month period of 2024. New orders increased by 47.4% compared to 9 months of 2023 at €121 million, with the receipt of significant new orders expected in the next months. The outstanding balance of €400 million offers good predictability for the current year and already covers part of its revenue fiscal year 2025, with an expected increase in the backlog.

THEON is in an advantageous position in terms of current and upcoming competitive procedures and expects significant orders that will increase predictability and will ensure its development. The company achieved record revenue of €222.6 million in 9M 2024, with a 92% increase compared to the 9th month of 2023 (€115.8 million) as a result of new contracts signed and the exercise of options by existing contracts.

THEON recorded strong profitability in the first nine months of the year, with a 115.3% increase in adjusted earnings before interest and taxes (Adjusted EBIT) at €50.6m. This led to the achievement of adjusted margin earnings before interest and taxes (Adjusted EBIT margin) by 22.7%, from 20.3% recorded in the same period of 2023, providing confidence in the achievement of the profitability target for the financial year 2024.

In the same period, THEON’s capital expenditure amounted to €11.5m, with the company expecting them to be slightly increased for the financial year 2024 at €15 million as it seeks to accelerate the development of advanced products platform-based technology to leverage further opportunities revenue.

The net cash position totaled €35.9 million as of September 30, 2024. Net working capital increased to €136.5 million, an increase of 15.9% in the first half of 2024 but 16 percentage points lower as a percentage of revenue. This is partly explained by the strategic decision to increase stocks, which enables the company to exploit ad-hoc opportunities arising in the fourth quarter globally.

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Strategic Directions

As mentioned, and in line with the strategy for innovation and new products with the aim of signing new contracts and increasing the volume of orders, THEON proceeds with a new investment of €10 million for the development of innovative platform-based products over the next 15 months. 50% of the investment will be made within the financial year 2024, with the first advanced prototype expected to be delivered by the end of 2025 and the first sales results to be visible in 2026. 

The development of the new product will be carried out through close cooperation with an external partner of the company and the in-house teams of THEON. At the same time, the company has already set up specially trained research teams and Development and Commercial Development, with the aim of strengthening and promoting its complete TALOS product line, already available on the market.

THEON is also actively pursuing additional acquisitions to further strengthen and diversification of its product portfolio, with some of them entering a due diligence review process. As recently announced, THEON has successfully implemented two strategic decisive moves in September 2024: the acquisition of Harder Digital and the long-term commercial agreement with Exosens.

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Achieving Goals

THEON maintains a steady course to achieve its financial goals for the year 2024 (revenues ranging from €330-350 million). The company participates actively in numerous competitions for night vision systems, thermal imaging, and the soldier equipment of the future, the total value of which exceeds €500 million (with a pre-approved budget), a fact that is expected to further boost the company’s sales in the coming years. 

The expected new orders give the company confidence that it will maintain its growth trajectory in 2025 and will repeat a double-digit rate development. Specific quantitative data will be announced before its end year, after the completion of tender procedures. Capital expenditure projections for fiscal year 2024 have been revised from €10 million to €15 million.

Christian Hatziminas, Founder and CEO of THEON, commented on the results of the 9th month: “We remain consistent in the promises we made the past year. The financial results of the 9th month of 2024 prove once again that THEON holds an advantageous position in market growth rates while presenting a strong margin profitability. 

It is expected that this positive trend will continue, with the recent and upcoming orders already offering strong predictability to 2025. The current quarter marks significant progress in Platforms production, where the company aims to repeat the success it already has in mobile systems products. The company implements strategies and moves in this direction, with the prospect of substantial results visible from 2026 onwards. 

At the same time, THEON is in negotiations for targeted acquisitions to accelerate development both in the main and related markets of its activity in the future years.”

Basic Financial Data

* Due to the issuance of new shares before and during the Initial Public Offering (IPO).

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