Theon International (THEON) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 financial performance with revenue up 160.73% year-over-year to €152.4 million and strong profitability, driven by night vision demand, new contracts, and successful execution of growth strategy.

• Completed first acquisition since IPO, acquiring a 60% stake in Harder Digital, and made a strategic investment in a South Korean manufacturing plant.

• Expanded geographic reach with new facilities in Denmark and South Korea, and advanced further acquisition opportunities.

• IPO on Euronext Amsterdam in February 2024 raised €93.9 million in net proceeds to fund growth and acquisitions.

• Night vision devices accounted for 93% of revenue, driven by new and expanded contracts, especially in Europe.

Financial highlights

• Revenue reached €152.4 million, up 160.73% year-over-year; adjusted EBIT rose to €36.93 million (+270.34%) with a 24.23% margin; adjusted EBITDA increased 252% to €38.01 million.

• Order intake reached €77 million, up 35.1% year-over-year; soft backlog at €427 million, 1.3x FY24 revenue guidance.

• Net cash position at €53.3 million, up from €0.1 million at year-end 2023, supported by IPO proceeds; leverage at (0.6)x LTM.

• Paid interim dividend of €14.44 million, representing 40% of FY23 net income.

• Trade working capital increased to €133.3 million, reflecting business growth.

Outlook and guidance

• FY 2024 revenue guidance confirmed at €330–350 million, with mid-twenties EBIT margin and €10 million capex.

• Confident in achieving full-year 2024 targets, with anticipated 45/55 revenue split between H1 and H2.

• Strong order book and pipeline, with €427 million soft backlog and €590 million in contract options.

• Ongoing investment in R&D and production capacity to sustain innovation and market leadership.

• Anticipate increased order intake in H2 and improved visibility for 2025 guidance.