THEON has signed a strategic agreement with Rheinmetall Electronics GmbH for the development, qualification, and serial supply of its PHYLAX stabilized multi-sensor electro-optic system, in a move that marks a significant expansion of the Greek defence technology group into advanced vehicle optronics.

The agreement was signed by Christian Hadjiminas, Founder and CEO of THEON, and Timo Haas, CEO Division Digital Systems of Rheinmetall, in the presence of senior executives from both companies. Under the arrangement, Rheinmetall has selected THEON’s PHYLAX solution for integration into the SEOSS 210 P stabilized electro-optical sight, intended for Rheinmetall’s 25mm medium-caliber compact lightweight turret solutions for modern land platforms.

The cooperation establishes a long-term industrial and technological partnership between the two groups. It also reflects Rheinmetall’s broader system-integration model, combining its own expertise in platforms and fire-control systems with high-performance subsystems from specialized European suppliers. In this context, the program supports the strengthening of a more resilient and interoperable European defence industrial base.

According to THEON, once development and qualification are completed within the agreed timelines, the program is expected to move into serial production. The initial application is linked to the fire-control system of the Luchs 2 reconnaissance vehicle, with a committed contract value exceeding €40 million for several hundred systems. Additional quantities may follow if the system is adopted for other vehicle platforms and turret programs.

PHYLAX is designed as a compact stabilized electro-optic system to improve situational awareness, reconnaissance, and target acquisition for combat vehicles. The system integrates a high-definition day camera, a mid-wave thermal imager, and an eye-safe laser rangefinder in a lightweight architecture optimized for crewless turrets and remotely operated weapon stations. With armed forces increasingly seeking enhanced sensing capabilities for digitalized battlefields, the agreement places THEON in a fast-growing segment of the land systems market.

Commenting on the development, Christian Hadjiminas said the contract demonstrates THEON’s growing design, development, and industrial capabilities in platform-based optronics, adding that the company’s progress in the segment has been accelerated through targeted investments in ShockEOS and Kappa Optronics. He noted that the deal is expected to open the door to additional opportunities in the international market.

To support this expansion, THEON has already begun construction of a new production facility in Athens, its third building in the area, dedicated to PHYLAX and other platform-based products. The new factory is expected to be ready by Q2 2027 and is intended to meet growing capacity requirements. The project is valued at around €10 million and is already included in the company’s 2026–2027 capital expenditure guidance.

Philippe Mennicken, Deputy CEO and Business Development Director of THEON, described the agreement as an important milestone as the company enters the rapidly expanding market for advanced electro-optical systems for land platforms. He also underlined THEON’s intention to deepen cooperation with Rheinmetall Electronics across future vehicle programs, while also leveraging its broader portfolio, including PHYLAX, the TALOS/TRITON series, and KAPPA’s optronics solutions.

The agreement further strengthens THEON’s position as one of Europe’s rising defence technology players, broadening its portfolio beyond its internationally established night-vision systems and into next-generation stabilized electro-optical solutions for combat vehicles.