Theon International Plc raised its medium-term organic revenue growth goal to more than 20% a year after nine-month revenue advanced 37.1%, while maintaining its 2026 sales and margin guidance.
Revenue for the three months ended Sept. 30 reached €134.1 million, up 40.4% from a year earlier. Adjusted earnings before interest and taxes (EBIT) totaled €35.1 million, compared with €22 million in the same quarter last year. The quarterly adjusted EBIT margin was 26.2%, against 23.1%; for the first nine months, it was 26.2%, compared with 24.8% in 2025.
The revised medium-term target replaces THEON’s previous goal of annual organic growth above 15%. The company said stronger sales traction, a clearer revenue outlook and a wider product range support the higher goal. Non-night-vision products made up 17.6% of revenue for the first nine months, up from 7.1% a year earlier. THEON attributed the shift to a more varied portfolio and a larger contribution from Kappa.
Nine-month order intake rose 22.5% to €285.2 million. THEON expects orders to pick up in the fourth quarter, pointing to typical sector seasonality and its historical business pattern. It said this acceleration would support a full-year book-to-bill target of about 1.0, compared with 0.74 for the first nine months.
The company kept its 2026 revenue guidance at about €600 million and its adjusted EBIT margin target above 26%. It cut its capital spending estimate to about €25 million from €30 million, citing the timing of investments and saying some planned spending is now expected in 2027. A new Athens facility for intelligence, surveillance and reconnaissance products is expected to open in Q2 2027.
At Sept. 30, soft backlog stood at €1.377 billion, down 5.4% from June 30. Net debt was €251.1 million, compared with €237.8 million at the end of June; leverage was 1.6 times net debt to last-12-month adjusted EBITDA.
After the reporting period, THEON completed its purchase of an 80% stake in MERIO and received an initial order worth about €5 million for the unit’s unmanned aerial vehicle solutions. The company also reported about €45 million in night-vision contract awards from two European NATO member states, subject to final approvals, with deliveries expected to start in 2026. Its planned acquisition of HGH remains in the approvals process, with completion expected in late Q4 2026.
Founder and CEO Christian Hadjiminas forecast a strong finish to 2026 and said momentum should continue into early 2027. CFO Dimitris Parthenis is scheduled to host a presentation and live Q&A on Nov. 18 at 9 a.m. ET (14:00 UTC).
