Source:

https://www.calcalist.co.il/market/article/hytjtdozxl

The drone imaging solutions manufacturer is benefiting from rising global defense budgets amid the ongoing war between Russia and Ukraine. NextVision concluded the quarter with a 33% increase in revenue and a 42% surge in net profit to $20.6 million. The order backlog reached $123.2 million by the end of the quarter.

NextVision, which develops and markets stabilized imaging solutions for drones, reported double-digit growth across nearly all key financial metrics in its Q1 financial results released today.

Revenue for the first quarter of the year rose 33% to $36.2 million. This increase is attributed to a 5.7% growth in the number of active customers, which reached 111 — customers who also purchased more units of the company’s products.

NextVision’s proactive preparation for rising demand included bulk orders of raw materials, which secured quantity discounts. Combined with increased production efficiency, this led to a 38% jump in gross profit, reaching $26.5 million.

Operating profit climbed even more sharply — up 40% to $22.2 million — despite a slight rise in R&D, marketing, and general and administrative expenses.

The company’s cash and short-term deposits reached $103 million by the end of the quarter, generating $1.9 million in financing income — more than double compared to the same period last year. As a result, net profit soared 42% to $20.6 million.

The order backlog reached $123.2 million at the end of the quarter — a 34% increase compared to Q1 2024, when it stood at $91.7 million. Compared to the end of 2024 (with a backlog of $101 million), this marks a 22% increase.

The company reaffirmed its guidance for 2025 revenue of $160 million. If achieved, this would represent a 40% year-over-year growth compared to 2024.

According to the company’s presentation, this growth forecast is driven by the global “winds of war” blowing stronger since Russia invaded Ukraine in February 2022.

NextVision presented its forecast for the world’s cumulative defense budget in 2027, showing a significant revision: from $1.3 trillion (pre-war estimates) to nearly $1.7 trillion post-invasion. The annual growth rate compared to 2021 was 1.5% before the war and is now projected at 5.4%.

Indeed, the winds of war that boosted NextVision’s performance have also lifted its stock price. The company went public in June 2021 at a valuation of just 407 million shekels, and today it trades at a market cap of 7.5 billion shekels.