THEON: third-quarter revenue up 40% – what changes in the growth targets

THEON closed the July-September 2026 period with third-quarter revenue up 40.4%, and raised its medium-term organic growth target to above 20% a year, from above 15% until now. The figures are in the third-quarter and nine-month trading update the company published on Monday, November 9.

Quarterly revenue reached 134.1 million euros, against 95.5 million a year earlier. Adjusted operating profit (EBIT) came to 35.1 million euros, up 59.5%, with a margin of 26.2% from 23.1%.

The nine months in numbers

For the nine months as a whole, turnover was 382.8 million euros (+37.1%) and adjusted EBITDA 107.3 million (+48.4%). New orders amounted to 285.2 million euros, 22.5% more than last year. The ratio of new orders to revenue stood at 0.74, with the company targeting about 1 for the full year, with the expected acceleration of orders in the fourth quarter supporting the target.

The soft backlog fell to 1,377 million euros on September 30, from 1,455.9 million at the end of June, with additional options of 897 million. Net debt was 251.1 million euros, equal to 1.6 times adjusted EBITDA of the last twelve months. Activities outside night vision reached 17.6% of revenue, from 7.1%, with a growing contribution from Kappa.

For 2026 the company confirms revenue of about 600 million euros, at the top of the previous range, and an adjusted EBIT margin of 26%, which it now defines as the new baseline. Capital expenditure for the year is trimmed to about 25 million euros, from about 30 million in the previous guidance, as part is shifted to 2027. The new ISR unit in Athens is expected to begin operating in the second quarter of 2027.

Acquisitions and new contracts

After the close of the quarter, THEON secured new night vision contracts of about 45 million euros from two European NATO countries, subject to the usual final approvals by authorities, with deliveries expected to start within 2026. It also completed the acquisition of 80% of France’s MERIO and has already secured a first order of about 5 million euros for MERIO’s UAV systems. The acquisition of HGH, for which a syndicated loan of up to 325 million euros was secured in September, is expected to close at the end of the fourth quarter. The stake in Harder Digital was also raised from 60% to 65%.

Founder and CEO Christian Hadjiminas called the results a sign of “continuing momentum” and forecast a strong close to the year. The company will present the results to investors on November 18.