Theon International — 2024 full results published

Theon International (AMS: THEON)

Last close As at 21/04/2025

EUR26.55

−0.65 (−2.39%)

Market capitalisation

EUR1,859m

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Research: Industrials

Theon International — 2024 full results published

Theon’s FY24 results gave further detail on the positive progress made in the year, with FY25 guidance unchanged. The market remains positive, with defence spend rising, particularly in Theon’s key market of Europe. Along with the strong order book (€654m soft backlog and €301m of options), the company remains well positioned to deliver on its growth ambitions.

David Larkam

Written by

David Larkam

Analyst, Industrials

Aerospace and defence

FY24 results

22 April 2025

Price €26.55
Market cap €1,904m

Net cash/(debt) at end FY24

€41.7m

Shares in issue

70.0m
Code THEON
Primary exchange AEX
Secondary exchange N/A
Price Performance
% 1m 3m 12m
Abs 38.8 97.1 126.5
52-week high/low €25.7 €8.6

Business description

Theon International develops and manufactures customisable night vision and thermal imaging systems, primarily for military and security applications. These optoelectronic devices are developed for both man-portable and platform applications.

Next events

Q1 results

28 April 2025

Analyst

David Larkam
+44 (0)20 3077 5700

Theon International is a research client of Edison Investment Research Limited

Note: PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue (€m) PBT (€m) EPS (EUc) DPS (EUc) P/E (x) Yield (%)
12/23 218.7 49.9 - 0.00 N/A
12/24 352.4 86.7 98.00 34.00 27.1 1.3
12/25e 420.0 105.2 114.00 39.90 23.3 1.5
12/26e 483.0 123.8 133.00 46.55 20.0 1.8

FY24 results in line with prelims

The detailed results were in line with the preliminary announcement on 14 February. Details are available in our flash note published on 17 February. The gross margin declined by around 1% to 31.0%, while R&D increased by 70% to €4.8m (1.4% of sales), with a 24.6% operating margin (25.1% on an adjusted basis). EPS was 98 cents, leading to a proposed dividend of 34.0 cents, in line with Theon’s stated payout ratio of 30–40%. In terms of sales breakdown, Night Vision, the traditional optronics product line, grew by 54% and remains the key category accounting for more than 91% of group revenue, while Thermal, the alternative imaging technology, grew by 125% to 7.7% of group revenue. Operational cash outflow was €22.7m, with cash conversion affected by a significant increase in receivables of €74.4m to support the sales growth, in particular the strong fourth quarter. Assisted by the €100m raise on listing, the group is in a strong financial position, with €41.7m in net cash at end FY24. The balance sheet benefited from the equity raise and trading performance, and includes the Harder Digital acquisition, with group net assets increasing from €77.4m to €236.2m (including €11.8m in minorities).

2025 outlook

There is no change to the outlook or guidance from the provisional results in February. Guidance for FY25 includes revenues of €410–430m, operating margins in the mid-20s percent range and capex of €20m. There are no changes to our profit forecasts. The dividend has been increased from 38.0c to 39.9c reflecting mid-30–40% payout range.

End markets remain positive

End markets are supported by a number of external dynamics. Penetration of night vision goggles per soldier has reached to 1:1 in North America, compared with 30% in Europe and lower levels elsewhere. Military spend in Europe (82% of Theon revenues) is set to rise following broad government commitments, with expectations it will be orientated to European suppliers. Asia and Middle East and North Africa defence spend is also increasing. Tariffs could affect Theon’s US activities (the Americas account for 11% of revenues), although Theon assembles its night vision systems in the US with Elbit, so any impact could be mitigated and potentially offset by gains in other regions. Internally, the group has committed €10m in development spend in FY25, with further platform products expected to launch.

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