Core Insights - Theon International Plc has extended its commercial agreement with Exosens for the supply of Image Intensifier Tubes (IITs) by an additional three years, now covering deliveries through to the end of 2030 [2][3] - This extension is expected to secure a higher annual supply of IITs to meet the increasing demand for Night Vision systems across Europe, MENA, and APAC regions [3][4] - The global availability of IITs is projected to remain tight, with supply falling short of demand despite capacity increases from Exosens and Harder Digital, in which Theon holds a 60% stake [4] Supply Agreement Details - Theon anticipates procuring over 400,000 IITs in the next five years through this supply agreement, reinforcing its position in the global Night Vision market [6] - The agreement allows Theon to exercise options for 2027 and 2028 into firm orders, enhancing its competitive advantage [3][5] Strategic Developments - Theon recently acquired a 9.8% stake in Exosens, becoming its largest strategic investor, which strengthens coordination in production and delivery schedules [5] - The CEO of Theon emphasized that this partnership extension is a strategic milestone that will help meet the accelerating global demand for Night Vision systems [7] Company Background - Theon Group develops and manufactures advanced night vision and thermal imaging systems for defense and security applications, with a global presence [8] - The company has over 240,000 systems in service with armed and special forces in 71 countries, including 26 NATO countries [8]

Core Insights - Theon International Plc has secured a framework agreement with the German Bundeswehr for up to 25,000 thermal weapon mounted clip-on sights, marking the largest procurement of such technology within the European Union to date [1][8] - The initial firm order consists of approximately 6,000 units, with additional options for around 19,000 units under a multi-year agreement [1][8] - Theon plans to assemble these systems in Wetzlar, Germany, as part of its local fulfillment strategy and geographic expansion [2] Company Performance - This contract represents Theon's largest order for thermal clip-on sights to date and follows a competitive tender process conducted by the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support [3][4] - Theon has previously won another tender in Germany for the IRIS-C thermal clip-on earlier this year, indicating a strong foothold in the digital/thermal technology sector [3][8] - The Deputy CEO of Theon highlighted the contract as a recognition of the company's technology reliability and competitiveness, emphasizing their expertise in both night vision and thermal imaging technologies [4] Market Position - Theon is establishing itself firmly in the digital/thermal imaging technology market, building on its market-leading position in night vision technology [8] - The company has expanded its production capacities in both Greece and Germany to meet growing demand for its products [4] - Theon Group has a significant global presence, with over 240,000 systems in service across 71 countries, including 26 NATO member countries [10]

Core Points - Theon International Plc has entered into a definitive agreement to acquire a 9.8% stake in Exosens SA for €268.7 million, equating to €54.0 per share [2][3] - Upon completion of the transaction, Theon will become the second largest shareholder in Exosens, following Groupe HLD [3] - The transaction is subject to regulatory notifications and is expected to close in early Q1 2026 [3] Financial Arrangements - UBS Europe SE and Citibank Europe PLC will provide a bridge facility for the transaction, which will be refinanced through a mix of debt and newly issued equity [4] - UBS Europe SE served as the sole financial advisor to Theon, while Clifford Chance provided legal advice [4] Company Background - Theon Group specializes in developing and manufacturing advanced night vision and thermal imaging systems for defense and security applications [6] - Theon Group has a global presence with subsidiaries and production facilities in multiple countries, including Greece, Cyprus, Germany, and the United States [6] - Theon International PLC has been listed on Euronext Amsterdam since February 2024 [6]

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]

Core Insights - Theon International Plc launched the NYX-BiNOD, a state-of-the-art night vision binocular, at the DSEI London 2025 Exhibition, designed to meet U.S. Army specifications and ready for production [5][10] Product Overview - The NYX-BiNOD is tailored for the U.S. market, adhering to specific requirements set by the U.S. Army, differentiating it from other global users [6] - It is an evolution of the successful NYX family of night vision systems, leveraging existing technology used by the U.S. Marine Corps and NATO allies, ensuring immediate production readiness [7] - Key features include compliance with U.S. Army specifications, combat-proven lineage, enhanced situational awareness, high-performance optics, rugged and lightweight design, and ergonomic modularity [9] Market Position - Theon holds over 50% of the global binocular/goggle market share, emphasizing its strong position in the industry [8] - The NYX-BiNOD is positioned as a reliable, high-performance night vision solution for U.S. Government, Federal, and Law Enforcement customers [10] Additional Offerings - During DSEI 2025, Theon showcased a comprehensive portfolio of man-portable equipment, including various night vision monoculars, modular binoculars, clip-on sights, thermal sights, and the TALOS family of observation systems [11] - Theon also introduced its Augmented Reality Modular Ecosystem of Devices (A.R.M.E.D.), aimed at enhancing tactical situational awareness and operational effectiveness for modern warfighters [12] Company Background - Theon Group has been operational since 1997, with a global presence and over 220,000 systems in service across 71 countries, including 26 NATO countries [13]

Core Viewpoint - Theon International Plc is expanding its operations by establishing a wholly owned subsidiary, Theon Belgium, to enhance its production capabilities and support its growing A.R.M.E.D. product line, aiming for significant revenue growth in the coming years [2][5][10]. Group 1: Establishment of Theon Belgium - Theon International Plc has formed a 100% owned subsidiary, Theon Belgium, to capitalize on the global traction of its A.R.M.E.D. product series [2]. - A new production facility is being established in Zaventem, Belgium, along with a liaison office in Brussels to support European Union and NATO programs [2][3]. - The facility will cover 420 square meters and is strategically located within the Ikaros Business Park, which is home to several high-tech companies [3]. Group 2: Operational Plans and Workforce - Theon Belgium has appointed a Belgian citizen as the Plant Manager, who will oversee the facility setup and recruit up to 12 employees in the initial phase [3]. - Production is expected to commence in the fourth quarter of 2025, with plans for future R&D integration as part of the company's long-term expansion strategy [3]. Group 3: Strategic Partnerships and Agreements - Theon Belgium has signed local cooperation agreements with major electro-optic manufacturers and local subcomponent producers to leverage Belgium's capabilities in thermal and digital technologies [4]. - This investment aims to create an export-oriented hub that will serve both local and global customer needs [4]. Group 4: Revenue Growth Strategy - The company plans to increase the proportion of A.R.M.E.D. products in its annual revenue from below 10% in 2025 to approximately 20% in 2026 [5]. - Theon aims for 50% of its revenues to come from products outside of Night Vision in the medium term, supported by organic growth and strategic acquisitions [5]. Group 5: Acquisition of Stake in Andres Industries - Theon has acquired a 10% strategic equity stake in Andres Industries AG for €1.1 million, with options to increase this stake to 24.99% within two years for a total consideration of €4.5 million [6]. - This acquisition is part of Theon's strategy to expand its presence in Germany and enhance its digital and thermal capabilities [6][8]. Group 6: Commitment to European Defense Integration - The establishment of Theon Belgium and the investment in Andres Industries reflect the company's commitment to the European Defense Industry Integration (EDII) [10]. - Theon aims to be a catalyst for EDII, aligning its strategic moves with the integration efforts pursued by European Union member states [10].

Core Viewpoint - Theon International Plc (THEON) reported strong Q1 2025 performance with significant growth in order intake, revenue, and earnings, driven by high demand for night vision technologies and advanced augmented reality capabilities [2][6][9]. Financial Summary - Order intake reached €117.9 million in Q1 2025, a 202.3% increase from €39.0 million in Q1 2024 [3]. - Revenue for Q1 2025 was €90.8 million, up 19.8% from €75.8 million in Q1 2024 [3]. - Adjusted EBIT was €23.0 million, reflecting a 34.2% increase compared to €17.2 million in Q1 2024, with an adjusted EBIT margin of 25.3% [3][9]. - Earnings per share increased by 38.9% to €0.25 from €0.18 in Q1 2024 [3]. - Capital expenditures (Capex) were €3.3 million, a 33.7% increase from €2.5 million in Q1 2024 [3]. Operational Highlights - The soft backlog at the end of Q1 2025 was €668.6 million, up 2.2% from €654.2 million in December 2024, providing solid visibility for future growth [3][9]. - The company secured several new contracts, including participation in the German Future Soldier Program, enhancing its product offerings in the A.R.M.E.D ecosystem [9]. - THEON's majority shareholder placed approximately 3.2 million shares, improving stock liquidity and broadening the investor base [9]. - The company was recognized in the FT Europe 1,000 fastest growing companies list for the second consecutive year [9]. - THEON initiated the process to join the United Nations Global Compact, emphasizing its commitment to sustainable practices [9].