Bet Shemesh Engines Holdings (1997) (BSEN) Q4 2024 earnings summary

Executive summary

• Revenue grew 23.5% year-over-year to $259.0M, driven by both engine parts and engine segments.

• Net income reached $36.4M, up from $60.0M in 2023 (which included a one-time real estate gain), with adjusted EBITDA at $59.8M, a 78% increase.

• Gross margin improved to 24.6% from 16.4% in 2023, reflecting operational efficiencies and favorable sales mix.

• The company maintained business continuity despite the Israel-Gaza conflict, with no material impact on operations to date.

• Significant long-term contracts and acquisitions position the company for continued growth in both civil and defense aviation markets.

Financial highlights

• Revenue: $259.0M in 2024, up from $209.7M in 2023 and $163.7M in 2022.

• Net income: $36.4M (2023: $60.0M, including $59.9M from a real estate sale; 2022: $4.7M).

• Adjusted EBITDA: $59.8M, up from $33.5M in 2023 and $18.9M in 2022.

• Gross margin: 24.6% (2023: 16.4%; 2022: 11.2%).

• Operating cash flow: $10.6M, with cash and equivalents at $0.1M at year-end.

Outlook and guidance

• Order backlog stands at $723M, with $1.7B in expected long-term orders over up to 20 years.

• Management expects continued growth in both segments, leveraging new contracts and expanded production capacity.

• Ongoing investments in technology and capacity are expected to support further efficiency and margin improvements.