Next Vision's profit jumped 130% in the quarter; stock surges in Tel Aviv

Revenues of the manufacturer of stabilized cameras for drones, Next Vision, led by Chen Golan, rose by 138% in the second quarter and totaled approximately $88.2 million. This growth was driven by an increase in sales volume and the number of the company's customers. According to Next Vision, the revenue growth demonstrates the company's ability to "continue and expand its operations in several markets simultaneously, while increasing production capacity and deepening its activity among a global customer base." Bottom line: the company's net profit rose by 130% in the second quarter and totaled approximately $53.6 million.

The company currently has over 300 Western aircraft manufacturers that use its products, 150 of which were active during the first half of the year. "The company continues to benefit from a global operational base, with Europe and North America continuing to be its main demand drivers, alongside the continued expansion of operations in additional markets."

Next Vision's operating profit totaled approximately $51.8 million, compared to approximately $23 million in the corresponding quarter, reflecting an operating profit margin of 58.8%. The continued growth in activity volumes, alongside an efficient expense structure, continues to support high operating profitability and demonstrates the company's ability to benefit from economies of scale while maintaining high operational discipline.

Next Vision also announced that it is raising its revenue target for this year to $355 million. This is the second update to the forecast target since the beginning of the year. The updated revenue target reflects growth of about 111% compared to 2025, against the backdrop of continued demand for the company's systems.

It should be noted that the company's gross profit margins are very high for a company that ultimately manufactures products, standing at 65.2%, very close to "pure" software companies. The company has a cash flow of approximately $43.8 million, alongside continued investment in inventory and the expansion of production infrastructure as part of the company's preparation for continued growth.

Decrease in order backlog

However, even at Next Vision, there are figures that are declining. Its order backlog as of August 9 totaled approximately $265.2 million and, according to the company, continues to "provide high business visibility that supports the continued implementation of the growth plan."

This backlog is a decrease of over $20 million compared to the backlog at the end of the first quarter, which stood at $288.6 million. In the defense world, sources previously told Globes that this is not necessarily negative news, but rather reflects the company's increased efficiency in delivering its products to its customers.

Next Vision's stock is one of the most successful on the stock exchange in light of the almost constant dramatic improvement in its business in recent years. In three years, the stock has jumped by 1,130%, but in the last three months, it has corrected and fallen by a quarter in light of the weak performance of the defense sector. This is against the backdrop of relative calm on the Iranian front. Next Vision's current market value stands at 22 billion shekels, and in the last five years, investors in its stock have recorded a dream return of about 4,000%.