TSG IT Advanced Systems (TSG) investor relations material

Executive summary

• Achieved record results in Q3 2025 and strong revenue and profit growth for the nine months ended September 30, 2025, driven by organic expansion and acquisitions.

• Completed significant acquisitions in both defense and civil sectors, including PSI and Ashd, and raised capital through a private placement.

• Global expansion efforts include strategic partnerships, acquisitions, and increased presence in key markets.

• Focus on advanced technology integration, especially AI, and transition to comprehensive system solutions.

• Maintained robust liquidity and met all financial covenants, with a notable increase in cash and equivalents.

Financial highlights

• Q3 2025 revenue reached ₪110 million, a 30% year-over-year increase; nine-month revenue totaled ₪322.1 million, up from ₪236.5 million.

• Q3 gross profit was ₪27 million, with gross margin improving to 25%; nine-month gross profit was ₪76.3 million.

• Q3 operating profit was ₪12 million, margin up to 11%; nine-month operating profit was ₪28.6 million.

• Q3 EBITDA increased 29% to ₪18 million, maintaining a 17% margin; adjusted EBITDA for nine months was ₪52.3 million.

• Q3 net income climbed 38% to ₪6.6 million, with a 6% margin; nine-month net income was ₪11.3 million.

Outlook and guidance

• Ongoing international growth through local partnerships, acquisitions, and expansion in defense and civil markets.

• Continued investment in AI-driven solutions and modular, scalable systems.

• Management expects continued growth from organic operations and new long-term contracts.

• Anticipates further benefit from rising global defense budgets and increased geopolitical tensions.