Investment case

Investment case

Theon is a leading developer and manufacturer of customizable night vision and thermal imaging systems for both dismounted and platform-based applications. It is focused on delivering operational superiority and safety through best-in-class products. Theon will continue growing globally, building on its successful track-record, both organically and through acquisitions.

Theon is listed on Euronext Amsterdam (AMS: THEON). It is also included in Euronext Tech Leaders’ segment showcasing high-growth and leading tech companies.

Key Stats

  • +28 years of expertise
  • Customers in 71 countries
  • 200,000 systems manufactured and sold until June 2024
  • > 50% revenue CAGR last 6 years
  • 25.1% Adjusted EBIT margin in 2024
  • Committed 30-40% dividend payout ratio
  • 1.3x FY24 book-to-bill ratio
  • +13% forecast growth in total addressable market from 2024-2027
  • €94 m net proceeds from IPO in February 2024 supporting growth strategy
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Strong global commercial presence

  • Established track-record and reputation, with more than 28 years of expertise
  • Global footprint, with customers across 71 countries (26 NATO), including multiple MoDs and Armed Forces
  • Market-leading innovation and in-house design and manufacturing capabilities
  • Full products customization, based on customer requests
  • Fastest delivery timeframes, cost-competitive, limited direct competition and high barriers to entry.

Significant growth prospects

  • Strong market drivers are expected, with the addressable market in defense spending projected to grow by 13% from 2024 to 2027*.
  • Solid order backlog and significant number of contractual options, providing good visibility on future revenues
  • Product innovation and diversification (adjacent products) supporting new contracts, contract uplifts, and increasing order sizes
  • Good pipeline of partnerships and M&A opportunities, including vertical integration opportunities solidifying the supply chain

* Renaissance Strategic Advisors, IPO prospectus

A platform to grow and provide returns

  • High and sustainable margins, with an EBIT margin around the mid-twenties
  • Low capex requirements and asset-light business model
  • Well-invested platform (facilities) with an existing capacity to support growth, and high operational leverage
  • Cost-efficient operating structure, and well controlled R&D spending
  • Robust balance sheet, providing the ability to both execute on the growth strategy and provide shareholder returns.