TSG IT Advanced Systems (TSG) Q4 2025 earnings summary

Executive summary

• FY2025 was a record year: revenue rose 34% to ₪430.3m, with growth in adjusted gross profit, operating profit, EBITDA and net income.

• Strategic priorities include expanding low-altitude air-defense capabilities, growing internationally and strengthening municipal operations.

Financial highlights

• Revenue was ₪430.256m, up 34% YoY; adjusted gross profit reached ₪113.233m, up 44%, with gross margin rising to 26% from 24%.

• Adjusted operating profit was ₪57.509m, up 34%; operating margin was 13% in both 2025 and 2024.

• Adjusted EBITDA, including right-of-use asset depreciation, reached ₪63.781m, up 31%; margin was 15%, or 17% excluding that depreciation.

• Adjusted net income was ₪34.639m, up 48%; net margin was 8%, versus 7% in 2024.

• Q4 revenue rose 34% YoY to ₪115m; operating profit increased 24% to ₪15m and net income rose 57% to ₪10m.

Outlook and guidance

• Strategy targets a complete solution to advanced low-altitude threats, deeper operational AI use, international partnerships and national-scale municipal leadership.

• Counter-drone expansion combines acquisitions, organic AI development using existing data-fusion and command-and-control capabilities, and entry into international markets with competitive pricing.