Theon International — Strong FY24 results; FY25 guidance confirmed

Theon International (AMS: THEON)

Last close As at 20/02/2025

EUR17.42

−0.66 (−3.65%)

Market capitalisation

EUR1,266m

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Research: Industrials

Theon International — Strong FY24 results; FY25 guidance confirmed

Theon has reported a strong set of maiden results as a listed company, along with good growth in order backlog, supporting positive guidance for FY25. Equally important are the operational milestones, in particular an initial contract win supporting the strategy for integrated and connected soldier optronic solutions. We expect to see the launch of new platform-based solutions in FY25 supported by the €10m committed investment. With such positive momentum, the shares remain attractive on a forward multiple of sub 13x.

David Larkam

Written by

David Larkam

Analyst, Industrials

Industrials

Preliminary results

17 February 2025

Price €14.50
Market cap €1,019m

Net cash at 31 December 2024

€41.9m

Shares in issue

70.0m
Code THEON
Primary exchange AEX
Secondary exchange N/A
Price Performance

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.

Analyst

David Larkam
+44 (0)20 3077 5700

Theon International is a research client of Edison Investment Research Limited

Note: 2024 revenue has been confirmed; PBT, EPS and DPS have not yet been released.

Year end Revenue (€m) PBT (€m) EPS (EUc) DPS (EUc) P/E (x) Yield (%)
12/22 142.9 37.8 - -
12/23 218.7 49.9 - -
12/24e 352.4 82.9 92.60 31.00 15.7 2.1
12/25e 420.1 105.2 114.00 38.00 12.7 2.6

FY24 sales of €352.4m were up 61.1% on FY23 and ahead of our forecast of €349.6m. Underlying EBIT was €88.2m, up 56.1% on FY23 and ahead of our forecast of €84.4m. The operating margin remained strong at 25.0% (FY23: 25.8%). We note that Q4 was clearly the strongest quarter; we calculate sales of €129.8m (36.9% of the full year figure), EBIT of €37.6m and an operating margin of 26.7%, reflecting the normal seasonality associated with government spending patterns. Year-end net cash of €41.9m was assisted by the net IPO proceeds of €93.9m and was below our forecast of €78.4m due to the strong Q4 trading leading to an increase in debtors, highlighted by net working capital absorption of 44.2% in FY24, which the company says has unwound in Q125. Capex was €11.4m, an increase of 48.1%. Detailed financial results will be published after market close on 14 April.

Order intake in the year was €466m (a book-to-bill ratio of 1.3x) leading to a 20% increase in the soft backlog to €654m, with additional embedded options of €301m offering further visibility. Since the year-end, the company reported January order intake of €53m with embedded further options of €95.5m. This strong opening position has led management to confirm guidance for FY25: sales of €410–430m, EBIT margins in the mid-20s, capex of €20m and dividend 30–40% of net income. Our forecasts are unchanged.

The highlight of the order intake in FY24 was the third option of the OCCAR contract for binocular night vision goggles through Theon’s consortium with HENSOLDT Optronics. Theon’s product strategy involves fully integrated, connected soldier optronic solutions promoting fused imagery, enhanced situational awareness and enhanced interconnectivity through its Augmented Reality Modular Ecosystem of Devices (A.R.M.E.D.). The first orders for such systems were announced in January 2025, incorporated into the German Future Soldier Program (IdZ). In addition, Theon has committed to a €10m R&D programme to develop a new range of platform-based products, to supplement the strong portfolio in the military man-portable sector. From an operational delivery perspective, Theon signed a long-term supply agreement with Exosens for the supply of image intensifying tubes (IITs) and acquired a 60% holding in Harder Digital, a manufacturer of IITs, securing medium-term supply of this critical component.

See our Edison interview with Dimitris Parthenis, Theon’s CFO, discussing the company’s activities and strategy.

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