THEON announces Q3 2025 Trading Update and FY 2026 Revenue Target

Core Insights - Theon International Plc has increased its FY 2025 revenue guidance to €435-445 million, up from the initial range of €410-430 million, and has set a revenue target for FY 2026 of €570-590 million, aiming for at least 20% organic growth and approximately 30% total growth including the acquisition of Kappa Optronics [3][4][12] Financial Summary - Order intake for the first nine months of 2025 reached €232.7 million, a 92.3% increase compared to €121.0 million in the same period of 2024 [4][5] - Revenue for 9m 2025 was €279.3 million, reflecting a 25.5% increase from €222.6 million in 9m 2024, marking the strongest performance in the company's history [4][5] - Adjusted EBIT rose to €69.4 million, a 32.8% increase year-over-year, resulting in an adjusted EBIT margin of 24.8%, which is higher than the previous year but shows a deceleration compared to H1 2025 [4][5] - Earnings per share increased by 25% to €0.70 in 9m 2025 compared to €0.56 in 9m 2024 [4][5] - Capital expenditures (Capex) for 9m 2025 were €12.5 million, an 8.8% increase from €11.5 million in 9m 2024 [4][5] Operational Highlights - The soft backlog stood at €591.7 million as of September 2025, slightly down from €622.2 million in June 2025, but the company anticipates an acceleration in order intake by year-end [4][5] - The company has made significant investments and acquisitions, including the acquisition of Kappa Optronics for €75 million and a strategic investment in Baltic Photonics [11][12] - A new €300 million senior facility agreement was signed in October 2025 to refinance existing short-term debt and enhance financial flexibility [11] Guidance and Targets - The company has set a mid-term target of achieving an adjusted EBIT margin in the mid-twenties and aims for organic growth exceeding 15% [12] - The dividend policy is to distribute 35% of net income for FY 2025, with a target of 20-30% for future years [12]