Theon International (THEON) H1 2026 earnings summary

Executive summary

• Achieved record H1 2026 revenue of €248.7 million, up 35.4% year-over-year, with strong profitability, margin expansion to 26.2% EBIT margin, and robust order intake supporting future growth.

• Expanded addressable market to nearly €8 billion through acquisitions, partnerships, and entry into UAV, counter-UAV, and AI-driven defense technologies.

• Major acquisitions included 80% of Merio (UAVs), 100% of HGH (counter-UAV/AI), minority stakes in Twin Prime (AI) and ShockEOS, and JV with Safran (gimbals/UAV EO/IR systems).

• Integration of acquired companies progressing rapidly, delivering early synergies, increased capacity, and operational improvements.

• Strategic focus on organic growth, especially in the U.S., leveraging new capabilities for global expansion and innovation.

Financial highlights

• Revenue grew 35.4% year-over-year to €248.7 million in H1 2026; order intake reached €232.5 million (+38.5% YoY), with a book-to-bill ratio of 1.0x.

• Adjusted EBIT rose 37.5% to €65.1 million; EBIT margin improved to 26.2%.

• Adjusted EBITDA increased 42.2% to €70.0 million; margin expanded to 28.1%.

• Net income nearly tripled to €74.3 million, including fair value gains on financial assets.

• Capex increased to €11.8 million (up 74.7% YoY), supporting capacity expansion and new product development; cash conversion at 83.2%.

Outlook and guidance

• FY 2026 revenue guidance maintained at €600 million, with adjusted EBIT margin expected above 26%.

• Medium-term organic growth target above 15% per annum, aiming for €1 billion revenue by 2029.

• Dividend payout policy set at 20–30% of net income, with €24.1 million paid (30% of FY 2025 net income).

• Focus on improving cash generation, working capital absorption, and international expansion.

• Confident in positive surprises to guidance as integration and synergies materialize.