Theon International — €1bn contract expands visibility to 2029

Theon International (AMS: THEON)

Last close As at 10/12/2025

EUR30.05

−1.20 (−3.84%)

Market capitalisation

EUR2,104m

More on this equity

Research: Industrials

Theon International — €1bn contract expands visibility to 2029

Theon’s recently announced c €1bn contract is the largest ever awarded by European NATO members for night vision goggles, highlighting the group’s strong market position and market leading technology as well as providing sales visibility out to 2029. We see this announcement as an inflection point in establishing Theon as a premium defence-related investment.

David Larkam

Written by

David Larkam

Analyst, Industrials

Aerospace and defence

Contract announcement

11 December 2025

Price €31.25
Market cap €2,240m

Net cash at 30 September 2025

€0.5m

Shares in issue (excluding ongoing December 2025 rights issue)

70.0m
Free float 30.0%
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: PBT and EPS are normalised, excluding exceptional items and share-based payments. Forecasts are before the effect of the rights issue and investment in Exosens.

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 31.9 1.1
12/25e 440.0 105.2 114.00 28.50 27.4 0.9
12/26e 580.2 130.5 141.00 35.25 22.2 1.1

The Theon/Hensoldt consortium has signed an updated contract with the European Organisation for Joint Armament Cooperation (OCCAR) for the supply of an additional 100,000 night vision goggles (NVGs) to the German Bundeswehr and 4,000 NVGs to the Belgian Armed Forces. The deal is for Mikron binoculars.

As part of Theon’s local fulfilment strategy, as followed in previous orders, part of the assembly will take place in Germany, at the joint company Hensoldt Theon NightVision (HTN), which is relocating to a larger facility. We also note the recent expansion undertaken in Theon’s Greek facilities. Supply of image intensifier tubes has been secured through the recently announced extended agreement with Exosens and internal investment in Harder Digital.

Theon’s 2025 year-to-date order intake stands as €1.3bn (3x FY25 expected revenue) and, inclusive of new options attached to this (OCCAR and Theon/Hensoldt) order intake, comes to c €2bn. The total backlog, inclusive of additional options of c €865m, totals c €2.4bn. The company reports that it now has secured a significant backlog out to 2029.

Management has stated that it will provide updated guidance for FY25 and FY26 following completion of the current rights issue and the lifting of associated restrictions. The results of the rights issue are expected post 15 December market close.

General disclaimer and copyright

This report has been commissioned by Theon International and prepared and issued by Edison, in consideration of a fee payable by Theon International. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright 2025 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or sol icitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on Theon International

View All

Latest from the Industrials sector

View All Industrials content

Research: Healthcare

Mendus — ASH 2025 update supports renewed strategy

Mendus has presented incremental clinical data for vididencel at the American Society of Hematology (ASH) 67th Annual Meeting, involving long-term follow-up for the ADVANCE II trial. This study is testing the ability of the candidate to prolong survival in acute myeloid leukaemia (AML) as a maintenance therapy. The data showed that at a median follow-up of 55 months, 13/20 patients treated with vididencel were alive, with eight patients having passed the five-year follow-up, and overall survival at 63%. (The prior update was at a median follow-up of 48 months, where 13/20 patients were alive, with five having reached the five-year follow-up). Immunological data tracked with survival, consistent with prior readouts, adding further confidence in vididencel as an active immunotherapy against residual disease in AML. Importantly, we believe this update supports Mendus’s renewed clinical strategy for the candidate, which is set to position it more broadly in this disease area.

Continue Reading