The IMCO USA company, ADTI, Wins a Substantial Order from a U.S. Defense Integrator
August 29, 2024 - IMCO Group (TASE: IMCO), a leading provider of advanced defense solutions, has announced a significant achievement through its U.S. subsidiary, Advanced Defense Technologies Inc. (ADTI). ADTI has secured a substantial order for the production and supply of assemblies and harnesses for a prominent U.S.-based defense company. This order, valued at approximately USD 7 million (approximately NIS 26 million), marks a pivotal milestone in ADTI's endeavor to expand its market presence within the American defense sector.
The current order is a testament to the growing trust and confidence that customers have in the quality and reliability of IMCO Group's products and services. ADTI's ability to consistently meet and exceed stringent industry requirements has solidified its position as a trusted supplier in the defense industry. This order underscores the increasing demand for IMCO Group's advanced defense solutions in the U.S. market, highlighting the company's commitment to delivering excellence and innovation.
In parallel, during the last few days, IMCO Group reported its remarkable financial results for the first half of 2024, showcasing exceptional growth in order backlog and profitability. At a record NIS 799 million, the backlog has more than doubled compared to NIS 299 million in H1 2023. This robust backlog, comprised of long-term multi-year contracts, is expected to fuel the company's continued growth as these contracts materialize in future financial results.
IMCO Group's financial performance in H1 2024 reflects significant improvements across key metrics. Revenue increased to NIS 128.1 million, representing a 2.6% growth compared to the same period last year. This growth is resulting from the groups' operational efficiencies and organizational restructuring, which led to an impressive jump in gross profit to NIS 25.7 million, pushing the gross margin above 20% for the first time and to a net profit soaring to NIS 5.3 million, indicating a staggering 179% year-over-year increase.
The combination of improved profitability and a substantial order backlog positions IMCO Group for sustained expansion in the coming years, reflecting its strengthened market position in both defense and civilian sectors.
Ariel Kendel, CEO of IMCO Group, commented on the financial results: "The results of the first half of 2024 reflect IMCO Group's significant progress. The increase in gross profit margin, which led to a surge in net profit, highlights our operational efficiency. The dramatic growth in our order backlog to a record of 799 million NIS ensures business continuity and provides a solid foundation for continued growth in future revenues and a basis for expansion in the global defense and civilian markets."
Yoav Ben Shem, Chief Business Officer at IMCO Group, added: "The significant order we received in the U.S. is a testament to our global expansion strategy and the quality of solutions we offer. The American market is a strategic target for us, and our success there highlights our ability to meet the highest standards of the global defense industry. We see significant growth potential in this market and intend to continue investing in developing innovative products and strengthening relationships as long-term partners to leading integrators in the market."
IMCO Group and ADTI will present their latest technology and solutions at the AUSA exhibition – Booth 1342.
