Theon (1K) | Hold | The(heat is)on

Research evidence excerpt

Theon (1K) | Hold | The(heat is)on

#EarningsPreview #TPchange #FlashReport

Release date: 23 June 2026

Company research

HoldTheon

Greece | Aerospace & defence Beta Profile: MCap: EUR2.6bn

Target Price: EUR36.00 (34.00) Change in TP: 5.9 % Bloomberg: THEON NA Reuters: THEON.AS

Current Price: EUR33.06 Change in Sales: none 26E/8.3% 27E Free float 30%

Up/downside: 8.9% Change in Adj EBIT: none 26E/14.5% 27E Avg. daily volume (EURm) 9.0

YTD abs performance 23.4% Market data: 22 June 2026 Change in Adj. EPS: none 26E/3.6% 27E

52-week high/low (EUR) 35.66/21.97

The(heat is)on Price performance

Why this report?

We reiterate our Hold rating on Theon, whose recent acquisitions further

cement the ambition to reach EUR 1bn+ revenues at mid twenties margins by

2029E. Although this comes at the cost of higher financial leverage, the

acquisitions of Merio (already consolidated in our model) and HGH (bought

EUR300m capital outlay for EUR40m turnover) to be consolidated fully in

27E), coupled with the signature of JV with Safran, further boost the group's

reach to high-margin thermal imaging segments, adding drone cameras, as a

15% CAGR new end-market. The prospects of greater diversification and M&A

are what led us to turn more constructive on the sustainability of the recent

re-rating back in Q1. We roll forward our TP with higher 2029E earnings now

embedding what we used to treat as M&A optionality to EUR 36. FY to 31/12 (EUR) 12/26E 12/27E 12/28E

Key findings Sales 611 769 882

EBITDA adj. 151 201 228

Order momentum continues to be solid and more diversified as witnessed by the EBIT adj. 147 195 222

latest EUR 70m Rheinmetall ARMED order and thermal imaging deals set to take Net profit adj. 104 131 154

order intakes 33% above last year's H1 to EUR 223m.