Summit Virtual. We appreciate your participation in today's virtual event. Up next, we are pleased to introduce BOS Better Online Solutions Limited. If you would like to ask a question during the webcast, you may click the Q&A icon button on the right side of your screen. Please type your question into the box and click Send to submit it. At this time, it is my pleasure to hand over the session to Eyal Cohen, CEO at BOS Better Online Solutions Limited, who will lead the presentation. Sir, the floor is yours.
Good morning, everyone. Thank you. And I'm excited to participate in the Investors Summit, and I appreciate you taking the time to join us today. Joining me is Moshe Zeltzer, our CFO. Let's dive into the presentation. BOS integrates cutting-edge technology to streamline and enhance supply chain operations across three specialized divisions. The Robotic Division automates inventory processes by replacing manual labor with robotic solutions. The RFID Division optimizes inventory management by tagging and tracking inventory through the supply chain. And the Supply Chain Division integrates our franchise electromechanical components directly into our clients' products. Let's explore each division in more detail. The Supply Chain Division is dedicated to integrating franchise electromechanical components into the products of leading defense and IT companies. Our engineering team works hand in hand with our customers' R&D department to ensure seamless integration into innovative designs, generating long-term OEM revenue as products move into production.
The primary growth driver here is the number of components we embed into our clients' products. That's why expanding our integration capabilities is central to our strategy. Over the last two years, we have doubled our engineering team and tripled the number of manufacturers we represent, strengthening our market position and growth trajectory. We are proud to serve global defense leaders such as Israel Aerospace Industries, Elbit Systems, and Rafael. Our network extends both directly to these companies and indirectly via their subcontractors across the USA, India, and Europe. This network serves as our launchpad for global expansion without the need for costly overseas sales offices. Our RFID Division enhances inventory management across the supply chain by integrating proprietary software with cutting-edge off-the-shelf equipment.
We deploy ruggedized solutions for industrial and logistics operations, such as handheld computers, forklift-mounted tablets, industrial scanners, thermal printers, RFID readers, and wireless systems from top brands like Zebra and Honeywell. Our proprietary interfaces ensure that every on-site inventory transaction is instantly reported to the client, ERP, WMS, or MES system in real time. As a value-added service, our expert team performs inventory counts for warehouses and stores using specialized hardware and software. Our business model is designed to generate recurrent revenue, including annual service contracts from hardware and software, inventory count services, and ongoing demand from consumers like barcode labels, RFID tags, and ribbons. We are proud to serve top-tier enterprises across Israel, like Shufersal in the food retail, IKEA in the non-food retail, and Teva in the pharmaceutical sector. Our Robotic Division streamlines industrial and logistics processes by automating labor-intensive tasks.
Our multidisciplinary team includes mechanical and control engineers for grommers and production crews specializing in mechanical assembly, together with delivering robotic cells that reduce dependency on labor, increase production capacity, and improve accuracy, all within three years ROI. We offer two main types of robotic solutions. First, our custom-built robotic cells. These are designed and built from ground, from the scratch, up to meeting each client's unique needs. Second, we integrate off-the-shelf robotic arms, as you see in the video, using top-tier models from Fanuc and Yaskawa. We customize them with specialized grippers and programming, adapting them perfectly to our clients' production or logistic processes. Today, 90% of our robotics projects serve the defense sector, where production is still heavily reliant on labor and facing increasing pressure for faster and higher quality output. This shift presents both a challenge to the industry and a major opportunity for us.
Our flagship client here is Elbit Systems, with additional high-tech lines validating our capabilities in this space. BOS is led by a skilled executive team of eight and four board members. Given the importance of technology, we employ two dedicated CTOs, one for the robotics and one for the RFID. Our total team includes 80 professionals, with 30% being engineers and technicians. Operational results and outlook. We delivered exceptional results this quarter, with record revenues and record net income that underscore the strength of our defense-focused strategy. These results reflect years of deliberate investment in product diversification and operational excellence, positioning us to capitalize on the defense sector and boost growth trajectory. With our strong Q1 performance and a healthy $22 million backlog, we are raising our confidence in exceeding our full-year 2025 targets of $44 million in revenues and $2.5 million in net income.
Our outlook remains grounded in the organic opportunities we see today and maintaining our conservative approach. Our growth strategy rests on two foundational pillars. First, deepened client relationship. We are expanding our value proposition to our defense customers through complementary offering exemplified by our successful launch of a new cabling line that leverages existing client relationships. Second, international expansion. We are strategically expanding overseas by partnering with our Israeli defense clients, global subcontractor. This approach generated $4 million in overseas sales in year 2025 to our Supply Chain Division. Our Robotic Division will install its first European production line this year, marking a significant milestone in our international growth. BOS presents compelling investment opportunities built on four key strengths. First, we hold a strong and expanding position in the global defense industry during a period of accelerating market growth. The defense sector fundamentals continue to strengthen globally.
Israel's defense budget increased 73% year over year, while Europe rose 16%. This creates a sustained demand environment that directly benefits our core business. Second, we have demonstrated consistent profitability with steady net income growth year after year, with a compounded annual growth rate of 49% through the years 2021 and 2025. Third, our balance sheet provides flexibility for strategic growth. With $23 million in equity, zero bank debt, and $4 million in cash, we have the financial foundation to execute our expansion plans while maintaining operational stability. Fourth, our valuation offers attractive upside compared to Russell 2000 index multiples. Price-to-earning ratio of Russell is 18 versus 11 for BOS Price-to-book value ratio of Russell is 2 versus 1.2 for BOS Thank you for your time and attention. Moshe and I are now happy to take your questions.
All right. Thank you, Eyal, for that.
Thank you, Eyal, for that.
Feel free to drop your question at the Q&A button or chat button so Eyal can answer it.
Is it all clear? Okay. There are no questions. Thank you again for joining us today. If you need more details or would like to follow up, please feel free to reach out. Wishing you all a great day. Thank you.
That concludes BOS Better Online Solutions Limited's presentation. You may now disconnect. For details on upcoming presentations, please refer to the conference agenda. Thank you for your participation, and we look forward to welcoming you to the next session.