TSG IT Advanced Systems (TSG) Q2 2026 earnings summary

Executive summary

• Achieved double-digit growth in revenue, gross profit, operating profit, EBITDA, and net profit in Q2 2026 compared to Q2 2025.

• Significant growth in both revenue and profitability, driven by organic expansion and acquisitions.

• Engaged in research, development, supply, implementation, consulting, and maintenance of systems and software for defense and civilian sectors, with two main business segments: defense and civilian.

• Completed major bond and equity issuances, supporting liquidity and future investments.

• Launched new products and expanded advanced manufacturing capabilities, including the DroneWeaver System.

Financial highlights

• Q2 2026 revenue: 248.3 million ₪, up from 190.3 million ₪ in Q2 2025; H1 2026 revenue: 430.3 million ₪, up from 325.9 million ₪ in H1 2025.

• Adjusted EBITDA for H1 2026: 38.2 million ₪, up from 29.8 million ₪ in H1 2025.

• Net income for Q2 2026: 8.1 million ₪, up from 4.7 million ₪ in Q2 2025; H1 2026: 16.3 million ₪, up from 8.1 million ₪ in H1 2025.

• Cash and equivalents at June 30, 2026: 149.5 million ₪, up from 117.5 million ₪ at June 30, 2025.

• Raised 221.8 million ₪ gross from bond issuance and 192 million ₪ from private equity placement in H1 2026.

Outlook and guidance

• Management highlights ongoing double-digit growth and expects continued expansion in both core and new markets.

• Continued demand in the defense sector, especially following operational use of new systems.

• Focus on integrating new acquisitions and expanding advanced manufacturing for defense applications.

• Uncertainty remains due to ongoing regional security tensions, making future impact difficult to estimate.