Bet Shemesh Engines Holdings (1997) (BSEN) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 reached $62.0M, up 20.2% year-over-year, driven by growth in both main business segments and price updates to customers.

• Net income for Q2 2024 was $9.0M, compared to $3.0M in Q2 2023, reflecting improved business performance and higher sales volume.

• The company continues to operate under the challenges of the ongoing Israel-Gaza conflict, but reports no material impact on its business as of the report date.

Financial highlights

• Gross profit for Q2 2024 was $14.8M (23.9% margin), up from $8.0M (15.4%) in Q2 2023.

• Operating income for Q2 2024 was $11.2M (18.1% margin), up from $5.0M (9.7%) in Q2 2023.

• EBITDA for Q2 2024 (excluding real estate transaction) was $14.1M (22.7% margin), compared to $7.7M (15.0%) in Q2 2023.

• Cash flow from operating activities for Q2 2024 was $18.6M, compared to $5.1M in Q2 2023.

• Inventory as of June 30, 2024, was $125.3M, up from $102.4M a year earlier.

Outlook and guidance

• The company holds long-term frame orders totaling approximately $1.7B, spanning up to 20 years, supporting future sales visibility.

• Management expects continued growth in both business segments, with ongoing recovery in civil aviation and strong demand in defense markets.