TSG IT Advanced Systems (TSG) Q2 2025 earnings summary

Executive summary

• Achieved record revenues and profitability in Q2 2025, with double-digit growth across all key financial metrics compared to the same quarter last year.

• Report covers six and three months ended June 30, 2025, with comparative data for 2024 and full year 2024.

• Global provider of advanced technology solutions for defense and civil sectors, with 800 employees and 70% engineers.

• The group operates in defense and civil sectors, providing systems, software, and services.

• No material impact from recent military operations; demand in defense sector expected to strengthen.

Financial highlights

• Q2 2025 revenues reached ₪105 million, up 35% year-over-year.

• H1 2025 revenues totaled ₪322.1 million, up from ₪248.3 million year-over-year.

• Gross profit for six months: ₪73.4 million, up from ₪49.3 million year-over-year.

• EBITDA increased 35% to ₪18 million in Q2 2025, maintaining a 17% margin.

• Net income for six months: ₪11.3 million, up from ₪8.1 million year-over-year.

Outlook and guidance

• Continued organic and inorganic growth expected in both defense and civil sectors.

• Management expects continued organic growth and contribution from acquired subsidiaries.

• No material adverse effects expected from recent military events; defense sector demand anticipated to grow.

• Identified growth potential in service center software and increased demand for advanced testing equipment.