B.O.S. Better Online Solutions (NASDAQ:BOSC) outlined its 2026 strategy during a virtual investor event, emphasizing backlog conversion, defense-sector demand, supply-chain automation and potential acquisitions.
Chief Executive Officer Eyal Cohen said the company has reported 21 consecutive profitable quarters, with 2025 annual revenue of $51 million, net income of $3.6 million and EBITDA of $4.6 million. He also cited a balance sheet with approximately $30 million of equity, $10 million in cash and about $1 million in loans.
Three-Division Platform
The Supply Chain Division distributes and integrates franchised electromechanical components into products made by defense, aerospace, high-tech, medical and industrial customers. President Avidan Zelicovsky said the division works with customers’ research and development teams on components including sensors, displays, electromechanical products and GPS-navigation products.
Zelicovsky said the company has doubled its engineering team and tripled the number of manufacturers it represents over the past two years. He attributed the expansion to growing demand for engineering support and component integration, particularly in air-defense programs.
The RFID Division provides inventory-tracking, sorting, packing and logistics automation systems. The company said the division combines industrial hardware from suppliers including Zebra Technologies and Honeywell with proprietary middleware software. Its customers include Shufersal, IKEA and Teva, according to the presentation.
The Intelligent Robotics Division designs customized robotic production cells and automated machinery. Cohen said defense manufacturers are an increasingly important focus because they face demand for shorter lead times, production capacity and improved quality while confronting labor shortages.
Approximately 65% of B.O.S.’ business serves the defense market, Cohen said. Most revenue in the Supply Chain and Robotics divisions is associated with defense, while the RFID business has primarily served retail customers. The company is seeking to increase RFID sales to the Israeli defense sector and has engaged a consulting firm led by former Israeli Defense Forces personnel to support that effort.
Backlog and Revenue Outlook
B.O.S. reported a $31 million backlog as of March 31, 2026. Combined with first-quarter revenue of about $11 million, Cohen said the company had secured approximately $42 million in revenue by the end of the quarter, representing roughly 83% of 2025’s full-year revenue.
Based on that backlog and first-quarter sales, Cohen said B.O.S. expects 2026 revenue to exceed the $51 million recorded in 2025. However, management maintained its full-year net-income target of $3.6 million because of pressure from the U.S. dollar’s depreciation against the Israeli shekel.
Chief Financial Officer Moshe Zeltzer said most sales and product purchases are denominated in U.S. dollars, while much of the company’s operating expenses are in shekels. To offset currency pressure, the company is seeking to increase revenue using its existing operating platform and improve sales margins. Gross margin rose to 24.9% in the first quarter from 23.9% in the comparable prior-year quarter, he said.
Cohen said more than 80% of company revenue is predictable, citing repeat demand for components embedded in customers’ products, RFID service contracts, software support, printer ribbons and RFID and barcode tags. He noted that the Robotics Division has lower visibility because robotic cells are capital-expenditure purchases for customers.
Defense Demand and International Expansion
Management identified rising global defense budgets, replenishment of Israeli defense inventories and expansion in India as key growth drivers. During the first quarter, B.O.S. received $3.3 million in orders from Indian customers, compared with $172,000 in the prior-year period, according to the presentation.
The company appointed an Indian representative company in March 2026 and has established an office in India, Zelicovsky said. He described India and the United States as the company’s primary international growth markets, supported in part by subcontracting relationships tied to Israeli defense programs.
Zelicovsky said B.O.S. generated more than $7 million of overseas sales during the past six months, compared with $1.6 million in a prior comparable period he referenced. He said contract manufacturers in India, the U.S. and Europe purchase components from B.O.S. for Israeli-linked projects and, increasingly, for other programs.
In Robotics, Elbit Systems remains a major customer. Cohen said B.O.S. recently received an initial order from RAFAEL and is in early sales discussions with Israel Aerospace Industries. He said the company expects to have a footprint with Israel’s key defense manufacturers by the end of 2026.
Acquisition Plans and Capital Structure
B.O.S. is pursuing acquisitions of companies valued at up to $20 million, with management prioritizing profitable businesses with consistent growth and strategic fit with its existing operations. Cohen said the company has several opportunities under review but did not provide further details.
Zeltzer said the company’s acquisition financing approach is intended to avoid shareholder dilution. The company expects to use available cash and bank loans, with profitable acquisition targets expected to support financing of roughly half of a transaction through bank debt.
The company has approximately 7 million outstanding shares, all of which are publicly floated, Zeltzer said. It also has about 430,000 options and warrants with an average exercise price of $3 and an average remaining life of two years.
Cohen said B.O.S.’ priorities for the remainder of 2026 include managing currency-related cost pressure, converting its backlog into revenue and advancing its merger-and-acquisition strategy. He said management hopes to close at least one acquisition before year-end.
About B.O.S. Better Online Solutions (NASDAQ:BOSC)
B.O.S. Better Online Solutions Ltd. provides intelligent robotics, radio frequency identification (RFID), and supply chain solutions for enterprises worldwide. The Intelligent Robotics Division provides custom-made machines for industrial automation and assembly of products and packing that offer technological solutions. The RFID Division provides hardware products, such as thermal and barcode printers; RFID and barcode scanners and readers; wireless, mobile, and forklift terminals; wireless infrastructure; active and passive RFID tags; ribbons, labels, and tags; and RFID systems for libraries.
