Bet Shemesh Engines Holdings (1997) (BSEN) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 reached $76.9M, up 24% year-over-year, driven by growth in both main business segments and the consolidation of Turbine Standard Ltd.

• Net income for the quarter was $7.2M, compared to $9.0M in Q2 2024, mainly due to higher finance and tax expenses.

• Gross margin improved to 24.4% from 23.9% year-over-year.

• The company completed the acquisition of Turbine Standard Ltd. in March 2025, enhancing its MRO capabilities.

Financial highlights

• Operating income for Q2 2025 was $13.1M, up from $11.2M in Q2 2024.

• EBITDA for the quarter was $17.0M, up from $14.1M in Q2 2024.

• Net financial debt increased to $76.0M as of June 30, 2025, from $37.4M a year earlier, mainly due to the Turbine acquisition.

• Current ratio declined to 1.5 from 1.9 year-over-year.

• Inventory rose to $166.0M, reflecting business growth and Turbine integration.

Outlook and guidance

• Backlog of expected orders stands at $2.1B, up from $1.7B at year-end 2024, covering up to 20 years.

• Management expects further sales and profitability growth as new part certifications are completed and serial production begins.

• No material impact from the Israel-Gaza conflict or new US tariffs has been observed to date, but risks remain.