Theon International Plc

THEON International Plc announced total new order intake of approximately €70 million, with a significant portion coming from Rheinmetall for the Bundeswehr's Future Soldier program, including a new firm order and exercised options for products from its A.R.M.E.D ecosystem portfolio. Order intake accelerated in the second quarter to around €153 million, plus an additional €27 million in options, bringing year-to-date order intake to roughly €223 million with a further €68 million in options, figures that reflect the full consolidation of Kappa and Harder Digital order intake. THEON expects further acceleration in the second half of the year, mainly toward the end of the fourth quarter, and reiterated its guidance of maintaining an organic book-to-bill ratio above 1.0x for fiscal year 2026. The company also highlighted recent strategic moves, including a joint venture with Safran to enter drone technologies, in which THEON will hold a 51% stake with equal governance rights, and an initial agreement to acquire HGH Systèmes Infrarouges for an enterprise value of about €300 million, marking its entry into counter-drone systems.

THEON International Plc has entered into an exclusivity agreement with Carlyle to acquire SAS Stéropès, the holding company of HGH Systèmes Infrarouges, for an enterprise value of approximately €300 million. HGH designs and manufactures electro-optical and infrared systems for defense and civil applications, employs over 130 people, and generated around €40 million in revenue with an EBITDA margin above 40% and a roughly 30% compound annual growth rate since 2023. The acquisition is expected to be mid-single-digit earnings-per-share accretive in 2027 and will be financed through a bridge facility from BNP Paribas, with no equity capital increase planned. The deal, which remains subject to works council consultation and regulatory approvals, is anticipated to close by the fourth quarter of 2026 and would broaden THEON's multi-domain intelligence, surveillance, and reconnaissance portfolio and counter-drone solutions.