Q2 2026 M.T.I Wireless Edge Ltd Earnings Call

August 17, 2026

Speaker #1: Perfect. That's 's probably a good amount of people that have joined so far for us to kick off today's webinar. But good morning, and thank you all for joining us for NCI Wireless Edges 2026 interim results webinar.

Speaker #1: Throughout the presentation, attendees will be on listening mode; however, questions are encouraged throughout today's webinar. So these can be submitted by the chat function in the bottom-right corner of your screen, simply type in your question and press send.

Speaker #1: The company might not be in a position to answer every question submitted today, however we will review all questions and, where where appropriate, share responses following today's webinar.

Speaker #1: The webinar today is also being recorded and will be published on the NCI website, after today. Or for later this afternoon. I'd now like to hand you over to NCI Group CEO Moni Borovitz and CEO of MoTech, David Shani.

Speaker #2: Thank you, Polly. Good morning, everyone. And thank you for joining our call today. Polly, can you jump to the next two slides? One more, please.

Speaker #1: Thank you. For small tech, with excellent results—David will elaborate about it, but part of it is the new hardware that we developed by ourselves.

Speaker #2: So we'll start with the results. We are very delighted with those results, showing double digits, growth, both in 2025 and in the first half of 2026, from revenue all the way down to the earnings per share.

Speaker #1: And all of this together, all the new solutions that we bring, helps us to further increase margin and shows that we are growing both in revenue and profitability.

Speaker #2: I would like to emphasize the operational cash flow that we had in the first half of this year. If people heard me before, they know that we are trying to convert about 70% to 80% of the EBIT into operational cash flow, and this was the case in the first half.

Speaker #1: Rolly, can you move to the next slide? And David will take it from here.

Speaker #2: Good morning, everybody. Let me start with the foundation of our small tech business. We have been working in water and irrigation control for more than 33 years, including our long partnership with Motorola.

Speaker #2: So we are very happy with that. Can you move to the next slide, please? So what pushes our business? First of all, of course, it's the defense market.

Speaker #2: Today we are active in five competitors, with more than 150,000 control units in the field. This installed base is very important for us.

Speaker #2: As everybody is well aware, the conflicts are continuing around the world, and nothing seems to be solved yet. In Europe, a lot of funds were directed into defense after many years that not enough funds were spent on defense.

Speaker #2: It creates opportunities for additional sales, system expansion and upgrade, and, of course, growing our recurring revenue. And when I speak about recurring revenue, I am speaking about recurring service and management revenue.

Speaker #2: And it's not only that. What we see today is that the war is becoming much more electronic warfare. And this means that everything is controlled and managed remotely.

Speaker #2: It's all about electronics. And this is where NCI is getting into the picture with many solutions. Regarding communication, communication jamming, telemetry to control remotely, and so on.

Speaker #2: Being active in different country markets and market segments gives us a lot of flexibility. So, if one market is affected by the economy or other changes, we have other markets where we can continue to grow, and that's what has always happened.

Speaker #2: And as indicated, below you see that in the last couple of months we received some very nice significant orders that we announced about. But many more small orders came in that are smaller to announce, and overall the backlog and the order of pipeline of opportunities is very big.

Speaker #2: Can you move to the next one, please? Looking at the commercial market, so I think that after this summer everybody in Europe understands what global warming is all about.

Speaker #2: And we start to see more interest coming from certain areas of the world regarding water management. We just recently had a visit from an Eastern European country, but David will talk about it later on.

Speaker #2: So no doubt that preserving water is a big issue for all of us. In the other segment of the commercial business is the 5G vehicle market.

Speaker #2: We all consume much more data. The problem is the capacity in the network, and we have some very nice solution for that. And we are very optimistic about where it is headed.

Speaker #2: If you go to the next slide, please. So the gross driver, of course, is with defense. As I mentioned, lots of new orders, the pipeline is growing, the backlog is big, and we look very optimistically on the second half and towards 2027 because some of the orders are already for 2027.

Speaker #2: In the 5G vehicle market, I would like to remind about our antenna beam swimming solution. The idea is that in the high-end of the vehicle, you use higher frequencies, the beam is narrow, and then you need to make sure that you adjust the movements of the towers with the antenna.

Speaker #2: And we invented a solution that we rotate only the feed, which is the electronics in addition, not the entire dish. It's a patented technology.

Speaker #2: It is being very well accepted, and I will elaborate about it later on. And of course, the star of the first half was MoTech, with excellent results.

Speaker #2: David will elaborate about it. But part of it is the new hardware that we developed by ourselves. And all of this together, all the new solutions that we bring, helps us even to increase margin and see that we are growing both on revenue and profitability.

Speaker #2: Polly, can you move to the next slide? And David will take it.

Speaker #3: Good morning, everybody. Let me start with the foundation of MoTech business. We have been working in water and irrigation control for the more than 33 years, including our long relationship partnership with Motorola.

Speaker #3: Today we are active in five competitors, with more than 150,000 control units in the field. This installation is installed based is very important for us.

Moni Borovitz: Half was Mottech with excellent results. David will elaborate about it, but part of it is the new hardware that we developed by ourselves. All of this together, all the new solution that we bring, help to significantly increase margin and see that we are growing both on revenue and profitability. Ollie, can you move to the next slide and David will take it?

Moni Borovitz: Half was Mottech with excellent results. David will elaborate about it, but part of it is the new hardware that we developed by ourselves. All of this together, all the new solution that we bring, help to significantly increase margin and see that we are growing both on revenue and profitability. Polly, can you move to the next slide and David will take it?

Speaker #3: It creates opportunity. For additional sets, system expansion, and upgrade, and of course, growing our recurring revenue and when I speaking about recurring revenue, I speaking about recurring service and management revenue.

David Vardi: Good morning, everybody. Let me start with the foundation of Mottech business. We have been working in water and irrigation control for more than 33 years, including our long relationship partnership with Motorola. Today, we are active in five continents with more than 150,000 control units in the field. This installation is a historic base. It is very important for us. It creates opportunity for additional sales, system expansion and upgrade, and of course, growing our recurring revenue. When I am speaking about recurring revenue, we are speaking about recurring service and management revenue. Being active in different countries, market and market segments give us a lot of flexibility. If one market is affected by economy or other change, we have other markets where we can continue to grow, and that is what happened always. Geographically separated is sorry. It give us a good level of stability and resilience.

David Shani: Good morning, everybody. Let me start with the foundation of Mottech business. We have been working in water and irrigation control for more than 33 years, including our long relationship partnership with Motorola. Today, we are active in five continents with more than 150,000 control units in the field. This installation is a historic base. It is very important for us. It creates opportunity for additional sales, system expansion and upgrade, and of course, growing our recurring revenue. When I am speaking about recurring revenue, we are speaking about recurring service and management revenue. Being active in different countries, market and market segments give us a lot of flexibility. If one market is affected by economy or other change, we have other markets where we can continue to grow, and that is what happened always. Geographically separated is sorry. It give us a good level of stability and resilience.

Speaker #3: Being active in different countries' markets and market segment give us a lot of flexibility. So if one market is affected by economy or other change, we have other markets where we can continue to grow, and that's what happened.

Speaker #3: Always. So geographically, geographic separate is sorry, it give us a good level of stability and riskless. About water saving, over the year we have proven in many projects that saving reach up to 40% in some cases of the amount of the water compared to the amount used in the past.

Speaker #3: When we speaking about long product life, it's important adventures and is the very important for our customer. Whether municipalities, agriculture companies, or water utilities, they are also want to know that the system can continue to grow and develop with their needs.

Speaker #2: So, geographically, geographic separate is—sorry, it gives us a good level of stability and less risk. About water saving, over the years we have proven in many projects that savings reach up to 40% in some cases of the amount of water, compared to the amount used in the past.

David Vardi: About water savings. Over the years, we have proven in many projects that savings reach up to 40%, in some cases, of the amount of the water compared to the amount used in the past. When we are thinking about long product life, it is important advantage and is very important for our customer, whether municipalities, agriculture companies, or water utilities. They also want to know that the system can continue to grow and develop with their needs. We have demonstrated that we can support several generations of field units. In some cases, it is more than four generations in one place. There are hundreds of customers around the world with a system containing several generations of products, up to four generations in some cases. This give our customer confidence and protects the value, the investment over the long term.

David Shani: About water savings. Over the years, we have proven in many projects that savings reach up to 40%, in some cases, of the amount of the water compared to the amount used in the past. When we are thinking about long product life, it is important advantage and is very important for our customer, whether municipalities, agriculture companies, or water utilities. They also want to know that the system can continue to grow and develop with their needs. We have demonstrated that we can support several generations of field units. In some cases, it is more than four generations in one place. There are hundreds of customers around the world with a system containing several generations of products, up to four generations in some cases. This give our customer confidence and protects the value, the investment over the long term.

Speaker #3: We have demonstrated that we can support several generations of field units in some cases it's more than four generations in one place. There are hundreds of customers around the world with system conveying several generations of product up to four generations in some cases.

Speaker #2: When we speak about long product life, it's important for our customers, and it's very important for our customers. Whether municipalities, agriculture companies, or water utilities, they also want to know that the system can continue to grow and develop with their needs.

Speaker #3: This give our customer confidence and protected the value they investment over the long term. And on top of this strong foundation, over the last two years, we have significantly expanded our technology and product offering.

Speaker #2: We have demonstrated that we can support several generations of field units; in some cases, it's more than four generations in one place.

Speaker #3: Motorola, of course, remain an important part of our offering and strong assets for us. But at the same time, we have added our own MoTech products, including the Elite range, decoder, sensor, and software application.

Speaker #2: There are hundreds of customers around the world with systems conveying several generations of product, up to four generations in some cases. This gives our customers confidence and protects the value of their investment over the long term.

Speaker #3: This give us much more flexibility in the market, of course. Customers do not all need the same solution. Some need a very advanced system, while others need a simple and more cost-effective solution.

Speaker #2: And on top of this strong foundation, over the last two years we have significantly expanded our technology and product offering. Motorola, of course, remains an important part of our offering and a strong asset for us, but at the same time we have added our own multiple products, including the Elite range decoder, sensor, and software application.

David Vardi: On top of this strong foundation, over the last two years, we have significantly expanded our technology and product offering. Motorola, of course, remain an important part of our offering and a strong asset for us. At the same time, we have added our own Mottech product, including the Elite range, decoder, sensor, and software application. This give us much more flexibility in the market, of course. Customers do not all need the same solution. Some need a very advanced system, while others need a simpler and more cost-effective solution. Our broader product range allow us to offer solution that is better suit to customer needs, fit the condition, and budget, of course. We are not replacing one technology with another. We are adding capability and giving our customer more choice. To the next slide, please. Market opportunity.

David Shani: On top of this strong foundation, over the last two years, we have significantly expanded our technology and product offering. Motorola, of course, remain an important part of our offering and a strong asset for us. At the same time, we have added our own Mottech product, including the Elite range, decoder, sensor, and software application. This give us much more flexibility in the market, of course. Customers do not all need the same solution. Some need a very advanced system, while others need a simpler and more cost-effective solution. Our broader product range allow us to offer solution that is better suit to customer needs, fit the condition, and budget, of course. We are not replacing one technology with another. We are adding capability and giving our customer more choice. To the next slide, please. Market opportunity.

Speaker #3: Our broader product range allow us to offer solution that is better suited to customer needs, fit the condition, and budget, of course. So we will not replacing one technology with another.

Speaker #3: We are adding capability and giving our customer more choice. To the next slide, please. Market opportunity water of course becoming a more limited and more valuable research.

Speaker #2: This gives us much more flexibility in the market, of course. Customers do not all need the same solution. Some need a very advantageous system, while others need a simple and more cost-effective solution.

Speaker #3: And customer are under increasing pressure to use water more efficiently. This is driving the adoption to of smart irrigation and water management solution. The market focus show here is a very strong.

Speaker #2: Our broader product range allows us to offer solutions that are better suited to customer needs, fit the conditions, and budget, of course. So we will not be replacing one technology with another; we are adding capability and giving our customers more choice.

Speaker #3: But for MoTech, the more important point is that the need is real need we can touch it. We are identify new opportunities with the actual transaction in region where we are we have not previous operated in the past, such in Eastern Europe, CIS, Czech Republic, Germany, and more places.

Speaker #2: To the next slide, please. Market opportunity—water, of course, is becoming more limited and a more valuable resource, and customers are under increasing pressure to use water more efficiently.

David Vardi: Water, of course, becoming a more limited and more valuable resource, and customers are under increasing pressure to use water more efficiently. This is driving the adaptation of smart irrigation and water management solutions. The market focus shown here is very strong, but for Mottech, the more important point is that the need is real need, we can touch it. We identify new opportunities with the actual transaction in a region where we have not previously operated in the past, such in Eastern Europe, CIS, Czech Republic, Germany, and more places. Next slide. One very good example is our Elite product range. Elite has been well received and gives us another strong solution in the market. It allows us to be more competitive, especially in markets where both price and performance is important. It also opens opportunity that were more difficult for us to address in the past.

David Shani: Water, of course, becoming a more limited and more valuable resource, and customers are under increasing pressure to use water more efficiently. This is driving the adaptation of smart irrigation and water management solutions. The market focus shown here is very strong, but for Mottech, the more important point is that the need is real need, we can touch it. We identify new opportunities with the actual transaction in a region where we have not previously operated in the past, such in Eastern Europe, CIS, Czech Republic, Germany, and more places. Next slide. One very good example is our Elite product range. Elite has been well received and gives us another strong solution in the market. It allows us to be more competitive, especially in markets where both price and performance is important. It also opens opportunity that were more difficult for us to address in the past.

Speaker #2: This is driving the adoption of smart irrigation and water management solutions. The market focus shown here is very strong, but for more tech, the more important point is that the need is real—we can touch it.

Speaker #3: Next slide. One very good example is our Elite product range. Elite has been well received and give us another strong solution in the market.

Speaker #2: We are identify new opportunities with the actual transaction in region where we are we are we have not previous operated in the in the past such in Eastern Europe CIS Czech Republic Germany and more places.

Speaker #3: It allow us to be more competitive especially in markets where both price and performance is important. It also open opportunity with that were more difficult for us to address in the past.

Speaker #3: South Africa is a very good example. After several difficult years, in this region, the business has returned to growth. The broader product portfolio and especially Elite has helped us become more competitive and more profitable.

Speaker #2: Next slide. One very good example is our Elite product range. Elite has been well received and gives us another strong solution in the market.

Speaker #3: We are also using the wither portfolio to enter areas where we had very limited presence before. Such as the Gulf Coast, landscape, so this is regarding the South Africa.

Speaker #2: It allows us to be more competitive, especially in markets where both price and performance are important. It also opens opportunities with the depth, which was more difficult for us to address in the past.

Speaker #3: Italy also is another important example we saw Italy not simply not simply as a new country because we are active in Italy more than 25 years.

Speaker #2: South Africa is a very good example. After several difficult years in this region, the business has returned to growth. The broader product portfolio, and especially Elite, has helped us become more competitive and more profitable.

David Vardi: South Africa is a very good example. After several difficult years in this region, the business has returned to growth. The broader product portfolio, and especially Elite, has helped us become more competitive and more profitable. We are now also using the wider portfolio to enter areas where we had very limited presence before, such as the golf course landscape. This is regarding South Africa. Italy also is another important example. We saw Italy not simply as a new country, because we are active in Italy more than 25 years, but as a platform to develop the wider Western European market and, of course, expand our share of the Italian market. At the same time, we want to build an installed base that can support recurring service revenue. We already have big experience with this model in markets such as Israel, Australia.

David Shani: South Africa is a very good example. After several difficult years in this region, the business has returned to growth. The broader product portfolio, and especially Elite, has helped us become more competitive and more profitable. We are now also using the wider portfolio to enter areas where we had very limited presence before, such as the golf course landscape. This is regarding South Africa. Italy also is another important example. We saw Italy not simply as a new country, because we are active in Italy more than 25 years, but as a platform to develop the wider Western European market and, of course, expand our share of the Italian market. At the same time, we want to build an installed base that can support recurring service revenue. We already have big experience with this model in markets such as Israel, Australia.

Speaker #3: But as a platform to develop the wither Western European market. And of course, expand our share of the Italian market. At the same time, we want to build and install base that can support recovering several service revenue.

Speaker #2: We are also using the Wither portfolio to enter areas where we had very limited presence before, such as the golf course landscape. So this is regarding South Africa. Italy also is another important example. We saw Italy not simply as a new country, because we are active in Italy for more than 25 years, but as a platform to develop the Wither Western European market and, of course, expand our share of the Italian market.

Speaker #3: We already have a big experience with this model. In markets such as Israel, Australia, for example, over 40% of the revenue in Israel coming from recurring revenue.

Speaker #3: And we accept expect to sign the first two or even three service agreement in Italy during this year. So Italy give us two opportunity.

Speaker #3: Product growth and recovering service revenue. So when we look at MoTech today, several things are happening at the same time. We have a large installed base from the international diversification and long-term customer relationship.

Speaker #2: At the same time, we want to build and install a base that can support recurring service revenue. We already have significant experience with this model in markets such as Israel and Australia. For example, over 40% of the revenue in Israel comes from recurring revenue, and we expect to sign the first two or even three service agreements in Italy during this year.

Speaker #3: We have expanded our technology and products offering. The market for smart water irrigation is growing. We are entering new application and segment our existing markets.

David Vardi: For example, over 40% of the revenue in Israel coming from recurring revenue, and we expect to sign the first two or even three service agreements in Italy during this year. Italy gives us two opportunities, product growth and recurring service revenue. When we look at Mottech today, several things are happening at the same time. We have a large installed base from the international diversification and long-term customer relationship. We have expanded our technology and product offering. The market for smart water irrigation is growing. We are entering new application and strengthening our existing markets, and we are building recurring revenue, like service and management revenue. Thank you.

David Shani: For example, over 40% of the revenue in Israel coming from recurring revenue, and we expect to sign the first two or even three service agreements in Italy during this year. Italy gives us two opportunities, product growth and recurring service revenue. When we look at Mottech today, several things are happening at the same time. We have a large installed base from the international diversification and long-term customer relationship. We have expanded our technology and product offering. The market for smart water irrigation is growing. We are entering new application and strengthening our existing markets, and we are building recurring revenue, like service and management revenue. Thank you.

Speaker #3: And we are build recurring revenue like service and management revenue. Thank you.

Speaker #2: So, Italy gives us two opportunities: product growth and recovering service revenue. So when we look at Motive today, several things are happening at the same time.

Speaker #1: Thank you, David. Polly, can we jump to the next one? So moving to the second division, the antenna division, and before jumping into 5G and military and telling you all about that, I'll just remind you that we have two other commercial markets.

Speaker #2: We have a large installed base from the international diversification and long-term customer relationships. We have expanded our technology and product offering. The market for smart water irrigation is growing. We are entering new applications and strengthening our existing markets, and we are building recurring revenue like service and management revenue.

Speaker #1: One is fixed broadband wireless access. Which is more or less flat. And we have the RFID, radio frequency identification, which is continued to grow for us.

Speaker #1: We do the antennas for assets management and toll road application. So let's go to the next slide. Discuss the growth that we see in military.

Speaker #1: And no doubt the 25 was a great year for the military antenna business. And we started the 26 wide flow. But we are catching up and I have no doubt that the second half of the year is going to be much stronger than the first one.

Speaker #2: Thank you.

Speaker #1: Thank you David. Polly can we jump to the next one? So moving to the second division the antenna division and before jumping into 5G and military and telling you all about that I'll just remind you that we have two other commercial market one is fixed bottom wireless access which is more or less flat and we have the RFID radio frequency identification which is continued to grow for us we do the antennas for assets management and toll road application so let's go to the next slide discuss the growth that we see in military and no doubt the 25 was a great year for the military antenna business and we started the 26 quite slow but we are catching up and I have no doubt that the second half of the year is going to be much stronger than the first one we secured a lot of orders but we continue to see a lot of tenders and a lot of opportunities some of it are based on new technologies that we are bringing into the market I spoke in the past about the bid to bring the process that we are doing with some of the defense company here in Israel and just as a reminder it's getting a production file from the customer and produce it to them because they do not have the capacity so it turns out that it's a bit slower than we anticipated but it has a lot of advantages because they want to change some some of the product process and sometime the yields are not good enough so we are doing changes and it just make us more involved and more tied to the customer and I have no doubt that this will be for the long term another cross engine for MTI in the international market we are seeing a lot of demand at the moment some new orders from some new customers mostly coming from Europe so we are very excited about the prospect of the military antenna business let's move to the next slide please.

Moni Borovitz: Thank you, David. Paulie, can we jump to the next one? Moving to the second division, the antenna division, and before jumping into 5G and military and telling you all about that, I will just remind you that we have two other commercial markets. One is Fixed Wireless Access, which is more or less flat, and we have the RFID, radio frequency identification, which just continues to grow for us. We do the antennas for assets management and toll road application. Let us go to the next slide, discuss the growth that we see in military. No doubt that 2025 was a great year for the military antenna business, and we started the 2026 quite slow. But we are catching up, and I have no doubt that the second half of the year is going to be much stronger than the first one.

Speaker #1: We secure the lot of orders, but we continue to see a lot of tenders and a lot of opportunities. Some of it are based on new technologies that we are bringing into the market.

Speaker #1: I spoke in the past about the bid to bring the process that we are doing with some of the defense company here in Israel.

Speaker #1: And just as a reminder, it's getting a production file from the customer and produce it to them because they do not have the capacity.

Speaker #1: So it turns out that it's a bit slower than we anticipated. But it has a lot of advantages because they want to change some of the product process and sometimes the yields are not good enough.

Speaker #1: So we are doing changes. And it just make us more involved and more tied to the customer. And I have no doubt that this will be for the long term another gross engine for MTI.

Moni Borovitz: We secured a lot of orders, but we continue to see a lot of tenders and a lot of opportunities. Some of it are based on new technologies that we are bringing into the market. I spoke in the past about the build to print process that we are doing with some of the defense company here in Israel. Just as a reminder, it is getting a production file from the customer and produce it to them, because they do not have the capacity. It turns out that it is a bit slower than we anticipated, but it has a lot of advantages because we want to change some of the product process and sometimes the yields are not good enough, so we are doing changes, and it just make us more involved and more tied to the customer.

Speaker #1: In the international market, we are seeing a lot of demand at the moment. Some new orders from some new customers. Mostly coming from Europe.

Speaker #1: So we are very excited about the prospect of the military antenna business. Let's move to the next slide, please. In the 5G vehicle, so the ABS is where we see a lot of traction at the moment.

Speaker #1: We are the only one today with an ABS solution in the western part of the world. I'm happy to say that we are now working to just close an agreement with another tier one vendor.

Speaker #1: It's the radio manufacturer. And we are working with the vast majority of the radio manufacturer in the western part. And when I'm talking western part, I exclude China.

Moni Borovitz: I have no doubt that this will be for the long term another growth engine for M.T.I. In the international market, we are seeing a lot of demand at the moment, some new orders from some new customers, mostly coming from Europe. We are very excited about the prospect of the military antenna business. Let us move to the next slide, please. In the 5G vertical, the ABS is where we see a lot of traction at the moment. We are the only ones today with an ABS solution in the western part of the world. I am happy to say that we are now working, we just closed an agreement with another tier 1 vendor. It is the radio manufacturer. We are working with the vast majority of the radio manufacturer in the western part. When I am talking western part, I exclude China.

Speaker #1: You can see here in the picture our antenna with its logo on it. This is an ABS antenna solution already installed in field. I can say that we are moving very well both in production and receiving, as I said, another customer.

Speaker #1: We were even ahead of our internal plan and started to manufacture those in India as well in our facility in India. So we now can manufacture them either in Israel or in India.

Speaker #1: And we are looking for the growth that we started to see this year in this area. We are still very much tied to the Indian market.

Speaker #1: Unfortunately, it is still on hold. As you can see below here, the percent of penetration in the Indian market is very, very low. We expect it to build up and we will build them when it is ready.

Speaker #1: But now what we see is that the ABS is pushing us forward. Let's move to the next slide to our third division. It's the distribution and special consulting services.

Moni Borovitz: You can see here in the picture our antenna with its logo on it. This is an ABS antenna solution already installed in field. I can say that we are moving very well, both in production and receiving, as I said, another customer. We were even ahead of our internal plan and started to manufacture those in India as well in our facility in India. So we now can manufacture them either in Israel or in India, and we are looking for the growth that we started to see this year in this area. We are still very much tied to the Indian market. Unfortunately, it is still on hold. As you can see below here, the percent of penetration in the Indian market is very, very low. We expect it to build up, and we will build them when it is ready.

Speaker #1: So here as a reminder, we first do represent about 30 companies 40 companies outside of Israel, bringing their technology into the Israeli market. Mostly to the defense companies in Israel.

Speaker #1: It's about 80% defense here. And on top of it, we have PSK, which is doing the integration and the build up of shelter solutions that it's purely military.

Speaker #1: So here is where we really feel the demand growing in the defense market in Israel. Can we flip to the next slide? So I'll give some examples.

Speaker #1: You can see on the picture to the right, many different type of components and subsystem that we sell here into the market. The backlog here is very, very big.

Moni Borovitz: What we see is that the ABS is pushing us forward. Let us move to the next slide, to our third division. It is the distribution and special consulting services. Here as a reminder, we first do represent about 30 companies, 40 companies outside of Israel, bringing their technology into the Israeli market. Mostly it is the defense companies in Israel. It is about 80% defense here. On top of it, we have P.S.K., which is doing the integration and the build-up of shelter solutions that is purely military. Here is where we really feel the demand growing in the defense market in Israel. If we flip to the next slide, I will give some examples. You can see on the picture to the right many different type of components and subsystems that we sell here into the market. The backlog here is very, very big.

Speaker #1: We made a lot of design wins. Some of the backlog is not filmed because we are waiting for the customer to finish the development and going into production.

Speaker #1: And some is filled. Filmed in PSK, we have the strongest backlog since we acquired it. And the pipeline of opportunities is very, very big.

Speaker #1: We are in a very good spot at the moment that we can do cherry picking of project for PSK. So we take some big project, I would say, with less risk and probably lower margin.

Speaker #1: At the same time, we can take some other projects that are with more risk, more technology, more margin. So we are building it up.

Speaker #1: The demand for shelter building and integration is huge. We are considering how to handle it and how to even expand more. But we are very happy with where it's positioned and where it should end this year.

Moni Borovitz: We made a lot of design wins. Some of the backlog is not filled because we are waiting for the customer to finish the development and going into production, and some is filled. In P.S.K. WIND Technologies, we have the strongest backlog since we acquired it, and the pipeline of opportunities is very, very big. We are in a very good spot at the moment that we can do cherry-picking of projects for P.S.K. WIND Technologies. We take some big projects, I would say with less risk and probably lower margin. At the same time, we can take some other projects that are with more risk, more technology, more margin. We are building it up. The demand for shelter building and integration is huge. We are considering how to handle it and how to even expand more.

Speaker #1: Let's go to the next slide. So I think that overall the big message here is that we are trying to build on innovation. Whether it's the new controllers for MOTEC, the ABS antenna, or other type of antennas that we develop.

Speaker #1: We are trying not to fight on the cheapest solution and only on price. But we are investing a lot in order to bring value added solution to the market.

Speaker #1: You would see that our R&D is not big. We expense everything. But it's not big. Because some of the R&D is paid by others, especially in the military market.

Speaker #1: But we keep the IP for ourselves. Some is collaboration with the companies that we represent. And this is how we are bringing value added solution to the market and improve our margin.

Moni Borovitz: But we are very happy with where it's positioned and where it should end this year. Let's go to the next slide. I think that overall, the big message here is that we are trying to build on innovation. Whether it's the new controllers for Mottech, the ABS antenna or other type of antennas that we develop, we are trying not to fight on the cheapest solution and only on price, but we are investing a lot in order to bring a value-added solution to the market. You would see that our R&D is not big. We expense everything, but it's not big because some of the R&D is paid by others, especially in the military market, but we keep the IP for ourselves. Some is collaboration with the companies we represent, and this is how we are bringing a value-added solution to the market and improve our margin.

Speaker #1: Let's continue to the next slide. Although we have a very strong gross internal engine, we are always looking to expand. Either by acquiring other companies or by expanding, especially in MOTEC worldwide.

Speaker #1: We have been quite active this year with acquiring 50% remaining in MOTEC Australia to push it stronger. Now is the opening of the Italian office because we believe there is a lot what to do there.

Speaker #1: And when it's under our management, we are more aggressive in marketing and chasing the recurring revenue. And as David mentioned, we expect it to free contracts already in Italy this year.

Speaker #1: When we are looking at acquisition, I always say I have two criteria. One is a better safe and sorry. So we learn very slowly before we do the investment.

Moni Borovitz: Let's continue to the next slide. Although we have a very strong growth internal engine, we are always looking to expand, either by acquiring other companies or by expanding, especially in Mottech worldwide. We've been quite active this year with acquiring 50% remaining in Mottech Australia to push it stronger. Now is the opening of the Italian office because we believe there is a lot work to do there. When it's under our management, we are more aggressive in marketing and chasing the recurring revenue. As David mentioned, we expected to see contracts already in Italy this year. When we are looking at acquisition, I always say I have two criterias. One is better patient service, so we learn very thoroughly before we do the investment. Secondly, that we are looking for profit and earnings from day one.

Speaker #1: And secondly, that we are looking for profit enhancing from day one. We are not looking for turnaround. We are not looking for science rocket technology that we don't understand yet.

Speaker #1: So we are trying to extend with what we want. And I hope that before this year end, we will have another news for you on that.

Speaker #1: But when times come, we will of course announce. Let's continue to the next slide, please. So a little bit more color on the revenues and profits this year.

Speaker #1: So as I said, military started a little bit slow. So it went down a little to 40% 47% of our revenue. But I have no doubt that we will end this year with about 50.

Speaker #1: And it's not because I expect MOTEC or the commercial market to go slower. We just know what we have in the pipeline in the military side.

Speaker #1: I love the diversity. As I mentioned, MOTEC was the star of the first half. So having three good legs in different markets, different geographies is always a benefiting in my eyes.

Moni Borovitz: We are not looking for turnaround, we are not looking for science rocket, technology that we don't understand yet. We are trying to expand with what we want. I hope that before this year end, we will have another news for you on that, but some time soon we will, of course, announce. Let's continue to the next slide, please. A little bit more color on the revenues and the profits this year. As I said, military started a little bit slow, so it went down a little to 47% of our revenue. But I have no doubt that we will end this year with above 50%. It's not because I expect most of all the commercial market to go slower. We just know what we have in the pipeline in the military side.

Speaker #1: As you can see, Europe or IMEA grew quite dramatically this year over as Asia and the Americas. It is both in the antennas and in MOTEC business.

Speaker #1: I remind you that in Israel, what we do about one third is ending as indirect export. We have a loyal customer base. They remain loyal.

Speaker #1: Because we give the value added and the services. And of course, we are always focused on the earning per share. So I'm happy to show that we continue with the double digit growth in that.

Speaker #1: Moving to the next slide. This is one of the best slides I can show. I think every CEO would love to show this slide.

Moni Borovitz: I love the diversity, as I mentioned, multiples this time of the H1. Having three good legs in different markets, different geographies is always benefiting in my eyes. As you can see, Europe or EMEA grew quite dramatically this year over Asia and the Americas. It is both in the antenna and in Mottech business. I remind you that in Israel, what we do, about one-third is anything with indirect exports. We have a loyal customer base. They remain loyal because we give the value added and the services. Of course, we are always focused on the earnings per share. I am happy to show that we continue with the double-digit growth in that. Moving to the next slide. This is one of the best slides I can show. I think every CEO would love to show this slide.

Speaker #1: Everything double digit growth, both last year and in the first half, margin expanding. But for me, it's important to remind our business model going forward.

Speaker #1: I always claim that on the additional dollar of revenue that we will generate, we should make 20% operational profit. So if you look at last year, we grew by 6 million more or less in revenue.

Speaker #1: And operational profit grew by 1.3 million. Same goes in the first half of this year. Two and a half million gross in revenue. About half million gross in operational profit.

Speaker #1: So the business model is working very well for us. And this means that as long as we can drive the gross in revenue, the profit will grow much faster.

Speaker #1: Let's move to the next slide, please. We have a very solid shareholder base. My family owns about one third of the companies. So full alignment with all the shareholders of the company.

Moni Borovitz: Everything double-digit growth, both last year and in the H1, margin expanding. For me, it is important to remind our business model going forward. I always claim that on the additional USD of revenue that we will generate, we should make 20% operational profit. If you look at last year, we grew by ILS 6 million more or less in revenue, and operational profit grew by ILS 1.3 million. Same goes in the H1 of this year, ILS 2.5 million growth in revenue, about ILS 0.5 million growth in operational profit. The business model is working very well for us, and this means that as long as we can drive the growth in revenue, the profit will grow much faster. Let us move to the next slide, please. We have a very solid shareholder base.

Speaker #1: This is of course one of the reasons that we pay dividend. And the real fact is that the first UK non-exact director that we had told me that real business pay dividends and since then we do pay dividend.

Speaker #1: We paid once in April. And as long as we can generate and continue to make profits, we will pay the dividends. Let's continue to the next slide, please.

Speaker #1: We are very much focused on increasing the trading in the share of the company. I think it's important to everyone. And I think that part of what we are doing here and connecting with investor hub is to get more closer to the shareholder base.

Speaker #1: So I would like to invite you to join our investor hub. If you haven't done so, it will allow you to communicate with us directly very easily.

Moni Borovitz: My family owns about one-third of the company, so full alignment with all the shareholders of the company. This is, of course, one of the reasons that we pay dividends. The real fact is that the first UK non-executive director that we had told me that a real business pays dividends, and since then, we do pay dividends. We paid once in April, and as long as we can generate and continue to make profits, we will pay the dividends. Let us continue to the next slide, please. We are very much focused on increasing the trading in the share of the company. I think it is important to everyone, and I think that part of what we are doing here and connecting with Investor Meet Company is to get more closer to the shareholder base. I would like to invite you to join our Investor Meet Company.

Speaker #1: So this is one part of the increased trading that we are looking for in the share. If we jump to the next slide, please.

Speaker #1: I will summarize. So I think we are in a great position in a growing market. We have a proven track record of managing this gross and penetrating in this market and seeing the gross converting to cash.

Speaker #1: We are paying dividend. We have a nice cash balance to continue and look for the M&A. On a better place and sorry more than I mentioned.

Speaker #1: And we are very excited on the prospect going forward. I hope you are too. And with this, we will be happy to take any question you may have.

Moni Borovitz: If you have not done so, it will allow you to communicate with us directly, very easily. This is one part of the increased trading that we are looking for in the share. If we jump to the next slide, please, I will summarize. I think we are in a great position in a growing market. We have a proven track record of managing this growth and penetrating in this market and seeing the growth convert into cash. We are paying dividends, and we have a nice cash balance to continue and look for the M&A on a better place and stronger over dimension. We are very excited on the prospects going forward. I hope you all do. With this, we will be happy to take any question you may have.

Speaker #2: Great. Thank you, Moni and for David for your presentation today. We'll now share some of the investor questions that have been submitted. Please do continue to ask questions via the chat box in the right hand corner.

Speaker #2: And so the first question that's come through is, what scope is there for MOTEC to create a solution to address wildfires?

Speaker #1: One thing. It's a different segment. So we are not active in this segment. But control is always control system is control system. Therefore, there is a possibility that our control system will be also integrated into this kind of solution in the future.

Speaker #1: There is one place only one place in Greece in the auto trade where our control system has already been integrated into this kind of solution.

[Company Representative] (Investor Meet Company): Great. Thank you, Moni and for David, for your presentation today. We will now share some of the investor questions that have been submitted. Please do continue to ask questions via the chat box in the right-hand corner. The first question that has come through is, what scope is there for Mottech to create a solution to address wildfires?

Operator: Great. Thank you, Moni and for David, for your presentation today. We will now share some of the investor questions that have been submitted. Please do continue to ask questions via the chat box in the right-hand corner. The first question that has come through is, what scope is there for Mottech to create a solution to address wildfires?

Speaker #1: Mostly the idea is to ensure the irrigation system are closed so the pressure is all the pressure or the water pressure is directly for the fire system.

Moni Borovitz: One second. It is a different segment. We are not active in this segment, but control is always control system is control system. Therefore, there is a possibility that our control system will be also integrated into this kind of solution in the future. There is one place, only one place in Greece, in the UltraSlide, where our control system has already been integrated into this kind of solution. Mostly, the idea is to ensure the irrigation system are closed, so all the water pressure is directly for the fire system.

David Shani: One second. It is a different segment. We are not active in this segment, but control is always control system is control system. Therefore, there is a possibility that our control system will be also integrated into this kind of solution in the future. There is one place, only one place in Greece, in the UltraSlide, where our control system has already been integrated into this kind of solution. Mostly, the idea is to ensure the irrigation system are closed, so all the water pressure is directly for the fire system.

Speaker #2: Great. Thank you for David. The nature of warfare has changed with far greater emphasis on technology. How valuable is this shift for NTI? Can you quantify?

Speaker #1: It's very difficult to quantify the sizes of the market is of course enormous. But I can say that the technologies that we have developed in the last few years with season more and more getting into the market.

Speaker #1: One very good example is that we developed an anti-jamming GPS type of a solution for an airborne application. It was for an North European suddenly see it coming from many, many other European countries that everybody is looking for the exact same solution.

Speaker #1: So I have no doubt that our capabilities are really aligning into what the market is looking for. And of course, here in the local market, we are very strong in everything that relates to missile identification and then the interception rockets.

[Company Representative] (Investor Meet Company): Great. Thank you, David. The nature of warfare has changed with far greater emphasis on technology. How valuable is this shift for M.T.I? Can you quantify?

Operator: Great. Thank you, David. The nature of warfare has changed with far greater emphasis on technology. How valuable is this shift for M.T.I? Can you quantify?

Speaker #1: We are in all of this markets.

Moni Borovitz: It is very difficult to quantify. The sizes of the market is, of course, enormous. But I can say that the technologies that we have developed in the last few years, we see them more and more getting into the markets. One very good example is that we developed an anti-jamming GPS type of a solution for an airborne application. It was for a North European government at the time, and we suddenly see it coming from many other European countries that everybody is doing for the exact same solution. I have no doubt that our capabilities are really aligning into what the market is looking for. And of course, here in the local market, we are very strong in everything that relates to missile identification and the interception rockets. We are in all of these markets.

Speaker #2: Great. Thank you, Moni. Outside of Israel, which markets represent the greatest opportunity for MOTEC? I think you've briefly kind of touched on this, but just to maybe mention again, and what is your strategy for growing your share of these markets?

Speaker #1: So I will answer this with your permission. We are active everywhere with MOTEC. Where we saw that there is a real need, we opened our own business or our own subsidiary.

Speaker #1: Because as I mentioned, I think we are more aggressive. I think that our key target is to grow in the US, US is a huge market.

Speaker #1: We have some very good value-added resellers there. But I believe that if we would have put on the ground, we would be even more aggressive.

Speaker #1: And again, it creates the opportunity for the recurring revenue that we all so love in MOTEC in crisis.

[Company Representative] (Investor Meet Company): Great. Thank you, Moni. Outside of Israel, which markets represent the greatest opportunity for Mottech? I think you briefly touched on this, but just to maybe mention again, and what is your strategy for growing your share of these markets?

Operator: Great. Thank you, Moni. Outside of Israel, which markets represent the greatest opportunity for Mottech? I think you briefly touched on this, but just to maybe mention again, and what is your strategy for growing your share of these markets?

Speaker #2: Great. Thank you. And the last question that's come in so far. Do you have plans to buy the remaining equity in PSK?

Moni Borovitz: So I will answer this with your permission. We are active everywhere with Mottech. Where we saw that there is a real need, we opened our own business or our own subsidiary. Because as I mentioned, I think we are more aggressive. I think that our key target is to go in the US. US is a huge market. We have some very good value-added resellers there. But I believe that if we would have boots on the ground, we would be even more aggressive. It gives the opportunity for the recurring revenue that we also love in Mottech increases.

Speaker #1: Yes. The option in PSK is coming to life really at the end of this year once we announce the results for 2026. I think that we will acquire.

Speaker #1: I'm not sure if the full entire 40% or we leave some incentive to the management. But for sure we will increase our stake in PSK.

Speaker #1: Everyone who followed us for a few years know that the start was not that smooth. And we took us time to take control over it and make sure it operates the way we think it should.

Speaker #1: I'm happy to say that now it looks much better. We also bought another external manager to help us with this. So he is here for the last six months.

[Company Representative] (Investor Meet Company): Great. Thank you. The last question that has come in so far: do you have plans to buy the remaining equity in P.S.K.?

Operator: Great. Thank you. The last question that has come in so far: do you have plans to buy the remaining equity in P.S.K.?

Speaker #1: And we see more and more organized type of work like we used to work in MTI that is happening there. So I'm quite confident that we will exercise the option.

Moni Borovitz: Yes. The option in P.S.K. is coming to life really at the end of this year, once we announce the results for 2026. I think that we will acquire, I am not sure if the full entire 40% or we leave some incentive to the management. But for sure, we will increase our stake in P.S.K. Everyone who followed us for a few years knows that the start was not that smooth, and it took us time to take control over it and make sure it operates the way we think it should. I am happy to say that now it looks much better. We also brought another external manager to help us with this. So he is here for the last 6 months, and we see more and more organized type of work like we used to work in M.T.I that is happening there.

Speaker #1: You're on mute, Polly.

Speaker #2: Sorry about that. Thanks for the flag. Another question we've just had come through is, being a UK company but run from Israel, is a negative factor.

Speaker #2: What are you doing to address this problem for investors and the share price?

Speaker #1: I'm not sure why it's negative if you are talking on the geopolitical part of it. We are from where we are this cannot be changed.

Speaker #1: Part of what we are doing is this conferences and talking to as many investors as we can. And people who know us know what we feel and what we think.

Speaker #1: And I would only add that you need to distinguish between the government of Israel or current government and the people of Israel. And that's about politics that I want to say.

Moni Borovitz: I am quite confident that we will exercise the option. You are on mute, Polly.

Speaker #1: We are all about business.

Speaker #2: Great. Thank you, Moni. And I think that's all of the questions for today. So thank you, MTI Group, for updating investors today. On behalf of the management team at NTI, thank you for attending today's webinar.

[Company Representative] (Investor Meet Company): Sorry about that. Thanks for the flag. Another question we have just had come through is being a UK company but run from Israel is a negative factor. What are you doing to address this problem for investors and the share price?

Operator: Sorry about that. Thanks for the flag. Another question we have just had come through is being a UK company but run from Israel is a negative factor. What are you doing to address this problem for investors and the share price?

Speaker #2: The recording will be available via the NTI Investor website. And just shortly after this presentation. So if you have any more questions, please just do submit those there and we'll get back to you.

Moni Borovitz: I am not sure why it is negative. If you are talking on the geopolitical part of it. We are from where we are, this cannot be changed. Part of what we are doing is these conferences and talking to as many investors as we can. People who know us, know what we feel and what we think. I would only add that you need to distinguish between the government of Israel, or current government and the people of Israel, and that is about politics. Today, we are all about business.

Speaker #2: But thank you again and have a great day to everyone. Thank you.

[Company Representative] (Investor Meet Company): Great. Thank you, Moni. I think that is all of the questions for today. Thank you, MTI Group, for updating investors today. On behalf of the management team at MTI, thank you for attending today's webinar. The recording will be available via the MTI investor website just shortly after this presentation. If you have any more questions, please just do submit those there, and we will get back to you. Thank you again, and have a great day to everyone. Thank you.

Operator: Great. Thank you, Moni. I think that is all of the questions for today. Thank you, MTI Group, for updating investors today. On behalf of the management team at MTI, thank you for attending today's webinar. The recording will be available via the MTI investor website just shortly after this presentation. If you have any more questions, please just do submit those there, and we will get back to you. Thank you again, and have a great day to everyone. Thank you.

Moni Borovitz: Thank you.

David Vardi: Thank you.

David Shani: Thank you.

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Q2 2026 M.T.I Wireless Edge Ltd Earnings Call

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