Bet Shemesh Engines Holdings (1997) (BSEN) investor relations material

Executive summary

• Q2 2026 revenue rose 18.9% YoY to $91.447M; operating income increased 31.6% to $17.292M, net income 111.7% to $16.003M and EBITDA 23.6% to $21.016M.

• Growth across both segments was supported by strong demand and long-term agreements; shekel appreciation weighed on earnings, while regional conflict remained an uncertainty.

Financial highlights

• Q2 gross profit was $21.168M, up 9.6% YoY; gross margin was 23.1% versus 25.1%.

• H1 revenue rose 19.7% to $180.624M and operating income increased 27.5% to $34.686M; net income was $18.371M versus $30.709M.

• H1 EBITDA increased 22.5% to $42.143M; gross profit rose 11.9% to $43.630M, with gross margin of 24.2% versus 25.8%.

• Q2 net finance expense declined to $1.2M from $2.8M, including a $1.1M reduction in interest expense attributed to lower financial debt.

Outlook and guidance

• Expected orders total ~$3.3B and span up to ~16 years, versus $3.2B at Dec. 31, 2025; framework orders are estimates and do not require customers to place specific orders.

• Growth priorities include small jet engines and MRO, U.S. market penetration, and parts demand linked to LEAP and GTF programs; management expects growth in both segments, particularly defense engines.

• Plans include activating an advanced facility in Israel and completing a small-engine assembly and test line at JetCat Defense in the U.S.; execution depends on capacity expansion and supply-chain conditions.