TSG IT Advanced Systems (TSG) Q2 2026 earnings summary

Executive summary

• Revenue and profitability grew significantly year over year, driven by organic expansion and acquisitions.

• Defense and civilian operations span systems and software research, development, supply, implementation, consulting, and maintenance.

• Bond and equity issuances strengthened liquidity and supported future investment.

Financial highlights

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

• Q2 adjusted gross profit: ₪31.3M (+12%); adjusted operating profit: ₪18M (+21%, 14% margin); adjusted EBITDA: ₪19M (+24%, 15% margin); adjusted net profit: ₪12.4M (+45%, 10% margin).

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

• Adjusted EBITDA for H1 2026: ₪38.2M, up from ₪29.8M.

• Operating cash flow: ₪13.8M, up from ₪13.7M.

Outlook and guidance

• Continued defense-sector demand, particularly following operational use of new systems.

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

• Regional security tensions create uncertainty about future performance.