THEON signs a sizeable new contract with OCCAR for its new generation thermal clip-on IRIS-C

Core Insights - Theon International Plc (THEON) and Andres Industries AG (ANDRES) signed a significant contract through OCCAR for the delivery of THEON's new generation thermal clip-on IRIS-C in Germany and Belgium, with ANDRES responsible for maintenance [3][4] - The initial order is valued at approximately €50 million, with an embedded option of around €150 million, enhancing THEON's mid-term revenue visibility and growth trajectory [4][11] - The IRIS-C thermal clip-on is expected to become a key upgrade for existing night vision goggles (NVGs), with strong global demand anticipated [5][11] Financial Impact - The contract is expected to significantly increase THEON's revenues, with projections indicating that the contribution of A.R.M.E.D. and Thermal Imaging products to total revenues will double to about 20% by 2026 [7][11] - The company anticipates achieving substantial sales from new platform-related products starting in 2027, aiming for 50% of revenues to come from products outside of Night Vision in the mid-term [7] Market Position and Strategy - Europe and the Middle East are identified as key markets for THEON, with increasing demand for man-portable equipment expected [6] - The contract reflects THEON's successful diversification of its product portfolio through innovation, positioning its thermal clip-ons and heads-up displays as reference products for advanced armies [6][11] - Theon has initiated production expansion in Belgium, leveraging local technical expertise and its strategic location as a host for EU and NATO headquarters [8] Leadership Commentary - The CEO of THEON highlighted the significance of winning this major tender with a new product, emphasizing the quality and rapid development capabilities of the company's engineering team [12] - The Deputy CEO noted that these new orders reinforce the long-term relationships with clients and the robustness of THEON's products under extreme conditions [12]