TSG IT Advanced Systems (TSG) Q4 2024 earnings summary

Executive summary

• Achieved record year in all operational metrics, with double-digit growth in revenue, EBITDA, and adjusted net income, and significant order backlog increase.

• Completed IPO in Q3 2024, raising approximately NIS 62 million and becoming a public company.

• Expanded through acquisitions of ARTES, Puzzle, and full ownership of EPR, strengthening defense and civil sectors.

• Signed a strategic partnership with a major US defense company in March 2025.

• Strengthened management team with key executive appointments.

Financial highlights

• Annual revenue grew 9% year-over-year to 322 million NIS; H2 revenue up 17% vs. H2 2023.

• Adjusted EBITDA rose 19% year-over-year to 55 million NIS; EBITDA margin at 17%.

• Adjusted net income increased 59% year-over-year to 20 million NIS.

• Operating cash flow increased to 48 million NIS, up from 39.2 million NIS in 2023.

• Dividend of 5 million NIS (2.09 NIS per share) declared in March 2025.

Outlook and guidance

• Sustained growth momentum expected into early 2025, supported by robust order backlog and ongoing expansion initiatives.

• Management expects continued growth in defense revenues due to increased demand post-2023 conflict and global security trends.

• Focus on expanding international business, leveraging new US partnership.