In the intricate dance of global geopolitics, one industry often finds itself booming amidst chaos and conflict: the arms and defence sector. Next Vision (NXSN.TA), a manufacturer of miniature cameras for drones and mini-drones, stands as a prime example of this phenomenon. The company’s journey from modest beginnings to meteoric success sheds light on the intricate interplay between war, security crises, and the business of weaponry.

As tensions between nations escalate and conflicts erupt, the demand for surveillance and reconnaissance technologies soars. Next Vision’s fortunes have soared in tandem with these geopolitical tensions. The ongoing war between Russia and Ukraine, the conflict in Israel, and the simmering tensions between the US and China have all contributed to a surge in demand for Next Vision’s products. This surge is evidenced by the staggering increase in the company’s revenues, profits, and stock value.

In 2023, Next Vision experienced an unprecedented leap in its stock value, with an astonishing 302% increase, making it the best performing stock during the year. This trend continued into 2024, with the stock registering a further 60% increase since the beginning of the year. Such remarkable growth propelled Next Vision’s market value to NIS 3.6 billion, a remarkable feat achieved in less than three years since its inception in June 2021.

The company’s financial performance paints a picture of remarkable success. According to its 2023 annual report, Next Vision’s revenues doubled from $26 million in 2022 to $52 million in 2023. Gross profit, operating profit, and net profit all witnessed substantial increases, reflecting the company’s robust growth trajectory.

Looking ahead, Next Vision remains bullish about its prospects, setting an ambitious annual growth target of approximately 70% in sales. This optimism is underpinned by the burgeoning market potential. Research cited in the company’s report forecasts a significant expansion in the global market for drone cameras, projected to reach $60 billion by 2030.

The bulk of Next Vision’s sales are derived from remotely piloted aircraft, a market that generated approximately $30 billion globally in 2023. With the company’s relentless focus on innovation and efficiency, it has maintained impressive profitability rates, boasting a gross profitability rate of 68% and an operating profitability rate of 55%.

Key to Next Vision’s success is its agility in responding to evolving customer needs and market dynamics. By leveraging technological advancements and streamlining operations, the company has ensured competitive pricing without compromising on profit margins.

Founded in 2009 by Chen Golan, Boris Kipnis, and Michael Grossman, Next Vision has established itself as a leading player in the development, production, and marketing of stabilized day and night photography solutions for various applications. With a diverse portfolio comprising 11 camera models and several sub-models, the company caters to both military and civilian markets.

The company’s geographic footprint reflects the global nature of modern conflicts. While its main market remains Europe, accounting for over half of its sales, Next Vision has also witnessed significant growth in Israel and the United States. The geopolitical tensions in these regions have spurred governments and defence contractors to invest heavily in surveillance and reconnaissance capabilities, further driving Next Vision’s growth.

Despite its focus on defence applications, Next Vision recognizes a variety of opportunities in the civilian market. The decreasing cost of cameras and the proliferation of drone technology have opened new avenues for applications such as infrastructure mapping and aerial transport.

With a robust order backlog and plans for expansion, Next Vision is poised for continued growth. The company’s commitment to innovation, coupled with its lean and efficient operations, positions it as a formidable player in the global defence industry.

As Next Vision marches ahead, its founders and shareholders reap the rewards of their vision and perseverance. With dividends set to be distributed to shareholders and plans for further recruitment, the company’s success story continues to unfold, driven by the inexorable forces of geopolitics and innovation.

Main photo: Co-Founder and CEO Chen Golan (Credit: Orel Cohen).