TSG IT Advanced Systems (TSG) Q4 2025 earnings summary

Executive summary

• Completed IPO in Q3 2024, becoming a public company; significant capital raised through public and private offerings in 2024–2026.

• Operates in two main segments: defense (security) and civilian, with diversified product and service offerings for both sectors.

• 2025 marked by continued impact from regional conflicts, driving increased demand in the defense segment and expansion in international markets.

Financial highlights

• Revenue for 2025: ₪430.3M, up from ₪322.1M in 2024 (33.7% YoY growth).

• Gross profit for 2025: ₪104.4M (gross margin ~24.3%), up from ₪73.8M in 2024.

• Operating profit for 2025: ₪37.2M, up from ₪26.8M in 2024.

• Net income for 2025: ₪11.3M, down from ₪16.3M in 2024, mainly due to higher finance costs and tax expenses.

• Adjusted EBITDA for 2025: ₪63.8M, up from ₪48.7M in 2024.

• Cash and cash equivalents at year-end 2025: ₪90.6M.

Outlook and guidance

• Management expects continued growth in defense revenues due to increased security budgets and international demand.

• Ongoing focus on expanding international presence, especially via strategic partnerships and acquisitions.

• Plans for further M&A activity in both defense and municipal/civilian tech sectors.