Theon International posted strong fundamentals and accelerating growth momentum in FY2025, according to its preliminary results. Revenue increased by 25.9% to €443.5 million, while order intake surged to a record €1.31 billion. The company’s order backlog more than doubled, providing clear revenue visibility through 2029. Profitability remained solid, with an EBIT margin of 26.2%, and net cash amounted to €126.9 million.
However, despite the robust headline figures, the results also point to several areas that merit closer scrutiny by international investors. In the fourth quarter, operating profitability softened, with the adjusted EBIT margin declining to 28.4% from 29.7% in the same period last year, indicating rising cost pressures even as revenues continued to grow strongly.
Cash flow quality also weakened, as the cash conversion ratio fell to 84.5% from 88.5%, reflecting higher funding needs for ongoing operations. Although working capital absorption eased compared with 2024, it remained at elevated levels, continuing to tie up significant liquidity.
At the same time, investment spending increased sharply, with capital expenditure rising by nearly 74% year on year. While this supports the company’s longer-term growth strategy, it places short-term pressure on free cash flow. In addition, recent acquisitions and strategic investments, while enhancing the group’s technological capabilities, have weighed on the balance sheet on a pro forma basis, with net debt rising to €211.7 million and leverage reaching 1.8 times EBITDA.
