Telsys (TLSY) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was ₪107.8M, with gross profit of ₪44.2M and net income of ₪103.9M, reflecting strong profitability.

• SOM segment sales declined 7.4% year-over-year, while Distribution segment sales grew 40% year-over-year.

• Cash and cash equivalents at March 31, 2025, totaled ₪81.9M, with total assets of ₪455.3M and equity of ₪281.4M.

• Dividends of ₪40M were distributed in Q1 2025, with an additional ₪35M declared for payment in July 2025.

Financial highlights

• Q1 2025 revenue: ₪107.8M, down from ₪115.8M in Q1 2024.

• Gross margin for Q1 2025: 41%, compared to 44% in Q1 2024.

• Net income for Q1 2025: ₪103.9M, up from ₪29.0M in Q1 2024.

• Operating cash flow increased by ₪9M year-over-year, mainly due to lower receivables and inventory.

• EPS for Q1 2025: ₪10.57, compared to ₪2.33 in Q1 2024.

Outlook and guidance

• Management notes no material impact from the ongoing Israel conflict as of report approval, but future sales and profit could be affected.

• U.S. import tariffs currently do not apply to SOM products, but future policy changes remain a risk.