Telsys (TLSY) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was ₪392 million, down from ₪549 million in 2023, mainly due to reduced sales in both SOM and distribution segments as customers used up excess inventory accumulated during the global component shortage.

• The company completed the acquisition of 100% of Variscite, consolidating its position in the SOM market.

• No material impact from the ongoing Iron Swords war was observed on operations as of the report date, though future risks remain.

Financial highlights

• Gross profit for 2024 was ₪174 million, with a gross margin of 44.4%, compared to ₪251 million and 45.8% in 2023.

• Net income attributable to shareholders was ₪95.7 million, down from ₪128.4 million in 2023.

• EPS (basic) for 2024 was ₪10.57, compared to ₪18.99 in 2023.

• Cash and cash equivalents at year-end were ₪67.2 million, compared to ₪81.9 million at the end of 2023.

• Dividends distributed in 2024 totaled ₪120 million.

Outlook and guidance

• Management does not expect sales growth in H1 2025 due to continued customer inventory drawdown, but anticipates improvement in H2 2025.

• The SOM segment expects to increase sales in 2025, leveraging its order backlog and anticipated new orders.