Greek defense technology group Theon International Plc has kicked off 2025 with a robust first-quarter performance, signaling both financial strength and operational expansion. The company’s Q1 2025 trading update, released on April 28, reflects rising global demand for advanced night vision and thermal imaging technologies — areas in which Theon has strategically positioned itself through innovation, international partnerships, and consistent investment.
Theon’s adjusted EBIT surged to €23.0 million in Q1 2025, a 34.2% increase from €17.2 million in the same period last year. This pushed the adjusted EBIT margin to 25.3%, up from 22.6%, highlighting improved operational efficiency. Earnings per share rose to €0.25, representing a 38.9% increase from €0.18 in Q1 2024. This trajectory underscores the success of the company’s expanding footprint and product range.
Capital expenditures also saw a 33.7% rise, reaching €3.3 million, in line with Theon’s strategic focus on capacity expansion and product innovation. This increase supports ongoing R&D initiatives and upgrades across the company’s global manufacturing and logistics infrastructure.
Net cash levels improved significantly to €61.2 million, a 46.8% increase over the €41.7 million recorded at the end of December 2024. Simultaneously, net working capital slightly declined by 3.3% to €160.0 million, reflecting enhanced operational efficiency and supply chain optimization.
New orders in Q1 2025 totaled €117.9 million — a remarkable 202.3% year-on-year increase. This translated into a book-to-bill ratio of 1.3x, which rises to over 2x when including €100 million in new contractual options likely to be converted into backlog. As of March 2025, Theon’s soft backlog stood at €668.6 million, up 2.2% from December 2024.
The company attributes this visibility to consistent demand across multiple regions, especially Europe and the Middle East, along with increasing traction in North America and Asia-Pacific markets. Contractual options valued at €289.0 million further underscore growth potential through the remainder of the year.
Operationally, Theon achieved key international wins in Q1. One of the most notable is its contract under the German Future Soldier Program (IdZ), for which it is supplying its newly launched Heads-Up Display system. The display is a cornerstone of the A.R.M.E.D. (Augmented Reality Modular Ecosystem of Devices) suite — a next-gen solution that integrates night vision, thermal imaging, and real-time battlefield data.
In addition to Germany, Theon continues to participate in a series of large-scale tender processes in NATO and allied nations. These efforts reflect sustained international demand for high-performance soldier systems that enhance situational awareness and survivability.
In March 2025, Theon’s majority shareholder placed 3.2 million shares, equivalent to 4.5% of total share capital. This move expanded the company’s investor base and enhanced stock liquidity on the Euronext Amsterdam exchange. The broader market presence aligns with Theon’s February 2024 IPO, which raised €94 million in net proceeds used for growth and acquisitions.
Recognition followed, as Theon was once again listed among the Financial Times’ top 1,000 fastest-growing companies in Europe. The company has also started steps toward joining the United Nations Global Compact — a move to align its business with global sustainability and ethical frameworks.
The Q1 update builds on Theon’s strong FY 2024 results, released earlier this month. Full-year 2024 revenue reached €352.4 million, marking a 61.1% increase from the previous year. Adjusted EBIT climbed to €88.4 million (up 56.5%), with a consistent EBIT margin of 25.1%. Net cash more than tripled year-on-year to €41.7 million, while capital expenditures totaled €10.7 million, up 40.1%.
Though the FY 2024 order intake of €466 million represented a slight year-on-year dip of 7.9%, the soft backlog grew to €654 million — indicating a healthy pipeline and forward-looking confidence. Theon also proposed a dividend of €0.34 per share (a 35% payout ratio), subject to shareholder approval.
Theon’s transformation into a global defense tech leader accelerated in 2024. The IPO on Euronext Amsterdam not only brought in €94 million in capital but also increased the company’s visibility among institutional investors. That capital has since funded strategic acquisitions, including Harder Digital, which supplies critical components, and a commercial alliance with Exosens to boost supply chain resilience.
The expansion allowed Theon to internalize key elements of its production process, reduce dependency on third-party suppliers, and enhance responsiveness to demand surges — a crucial advantage amid global geopolitical tensions and defense rearmament cycles.
Product innovation remains a cornerstone of Theon’s strategy. In 2024, the company introduced the Iris thermal clip-on system, compatible with both Theon and third-party monocular and binocular night vision gear. Orders have already been received from three NATO nations and two Middle Eastern countries.
Iris overlays thermal imagery onto traditional night vision and its advanced model integrates with Battle Management Systems (e.g., ATAK) through AR capabilities, offering strategic advantages in complex combat environments. Theon positioned Iris as a cost-effective solution for militaries seeking thermal fusion without a full system overhaul.
Parallel to Iris, the Orion fused binocular system was launched to complement existing platforms. These launches build on the legacy of the Nyx night vision binocular — a flagship product in service with the U.S. Marine Corps (as AN/PVS-31A) and several European armies. Local production agreements with Safran-Vectronix and Elbit Systems of America have bolstered Theon’s embedded presence in allied defense supply chains.
In June 2024, Theon diversified its portfolio with the launch of its ISR (Intelligence, Surveillance, Reconnaissance) Electro-Optical Solutions segment. Two new product families — TALOS and TRITON — were unveiled to support land and maritime surveillance operations.
TALOS, with its range of short- to long-range systems, includes gyro-stabilized optics and AI-powered processing for tasks such as border surveillance, urban security, and military reconnaissance. TRITON systems are optimized for maritime deployment and can be integrated onto vessels from small patrol boats to full-sized naval frigates.
This diversification helps Theon mitigate market volatility by addressing adjacent defense needs beyond dismounted soldier systems. The ISR segment also opens doors to civil security, law enforcement, and critical infrastructure protection.
Since its founding in 1997, Theon Sensors has grown from a Greek startup into a multinational group with operations in over 70 countries. Its systems are deployed by 26 NATO members and a broad range of allied forces globally. The company operates facilities in Athens, Wetzlar (Germany), and Plymouth (USA), and employs more than 300 personnel worldwide.
Theon’s international strategy is rooted in localization — not just through exports but by embedding itself into local ecosystems via production agreements, technical support, and training partnerships. This approach has been instrumental in building long-term customer relationships and securing repeat contracts.
While Theon’s trajectory is undoubtedly upward, the company remains vigilant amid a rapidly changing global security landscape. Political instability, supply chain pressures, and intensifying competition in the defense tech sector all pose potential risks. However, the company’s balance sheet strength, product innovation, and growing backlog provide resilience.
Theon’s strategic roadmap includes continued investment in R&D, exploring AI-enhanced vision systems, expanding its ISR solutions, and deepening its footprint in the Indo-Pacific — a region marked by growing demand for next-generation surveillance and soldier systems.
Theon International’s Q1 2025 results reinforce the company’s standing as one of Europe’s most dynamic defense technology firms. With a solid financial foundation, strong order book, expanding global presence, and commitment to innovation, Theon is poised to play a key role in shaping the future of soldier systems and surveillance technology — in Europe and beyond.
