TSG IT Advanced Systems (TSG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached NIS 101.0m, up 34.8% YoY, driven by organic growth and acquisitions, including in defense.

• Net income was NIS 11.3m, up from NIS 2.3m in Q1 2024.

• Record revenue growth reflected rising demand for advanced defense technology and activity in municipal systems and solutions.

• IPO completion in Q3 2024 strengthened the capital base; a NIS 5m dividend was approved and paid in April 2025.

Financial highlights

• Gross profit was NIS 23.7m, up from NIS 16.9m in Q1 2024; operating profit was NIS 11m, up 29% from NIS 8m.

• Adjusted EBITDA was NIS 16.4m, up from NIS 12.8m in Q1 2024.

• Net cash from operating activities was NIS 15.7m, compared with NIS 9.0m in Q1 2024.

• Cash and cash equivalents were NIS 90.6m at March 31, 2025, versus NIS 49.5m a year earlier.

• Reported revenue, gross profit and EBITDA figures were NIS 101.0m, NIS 23.7m and NIS 16.4m, respectively.

Outlook and guidance

• Strategic priorities include organic growth and acquisitions, maintaining high profitability, and expanding solutions across defense and municipal markets.

• Priorities include expanding operational engineering, maintenance and advanced testing equipment, and deepening work with defense industries.

• Expected continued growth across defense and civilian segments, leveraging acquisitions and strategic partnerships; all financial covenants remain satisfied.