Defense Sector Drives TSG to Record Revenues

18 August, 2025

TSG’s defense revenues surged by nearly 50% in the second quarter, reaching 78% of the company’s overall revenue mix, driven by major projects in Israel, Europe, and its first entry into the U.S. market

[Illustrative image courtesy of TSG]

Information technologies firm TSG reported a sharp increase in defense-related revenues in Q2 2025, underscoring the sector’s role as its primary growth engine in recent quarters. Defense revenues totaled ₪82.2 million, up nearly 50% from the same quarter last year and accounting for about 78% of total revenues. In Q2 2024, the defense segment represented roughly 70% of overall sales.

While the civilian business posted a slight decline, total revenues still climbed 35% year-over-year to ₪104.6 million. The same trend appears in the first half of 2025, where defense revenues reached ₪161.6 million, up 50% and representing 78% of TSG’s total revenue base.

Expanding in Europe, First U.S. Defense Customer

TSG positions itself as a multidisciplinary technology company, dividing activity between civilian and defense markets. Civilian projects cover transportation, energy, emergency services, and control centers—but defense remains the cornerstone of its growth. The company focuses on command-and-control (C2) systems, operational IT, technological integration, and intelligence analysis capabilities.

In recent years, TSG has secured several high-profile defense projects in Israel and Europe. In June, it signed a strategic partnership with Czech company Retia to jointly bid on a Czech Ministry of Defense tender for a NATO-standard advanced air management system. Under the agreement, TSG develops the software while Retia provides the hardware and leads field integration. The company also reported a €3 million contract with a European naval defense firm, further expanding its European footprint. These developments align with Europe’s post-Ukraine war military buildup and the growing demand for advanced C2 systems.

In Israel, TSG plays a central role in developing and deploying advanced C2 platforms for the IDF, including battlefield management and maneuver force command systems. It is also engaged in air defense and homeland security projects, supplying operational IT and intelligence solutions for combat units and national security control centers. In July 2025, the company signed a deal with a U.S. defense technology supplier to integrate its solutions into advanced U.S. Army systems—marking TSG’s first foothold in the American market.

Primarily an integrator, TSG combines software, hardware, and communications components into end-to-end command-and-control platforms for armed forces and security agencies. At the same time, it develops its own dedicated software solutions in areas such as C4I, battlefield management, air control, and intelligence systems.

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Posted in: Aerospace & Defense , News

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