Gauzy Has Strong Outlook with Boeing, Ford Partnerships
Gauzy Ltd. (Nasdaq: GAUZ) reported 1H revenue soared 48% to $49.1 million
Company offers smart glass technologies, ADAS, and traditional shading solutions in light and vision control markets
Raised $75 million in its June IPO, bolstering its financial position and reducing leverage by converting all convertible debt into equity
Operates manufacturing sites in Israel, Germany, France, US, with 96 certified partners in over 30 countries
Serves over 1,000 customers globally, with no single customer accounting for more than 9.3% of revenue
Long-term supply agreements in aerospace, automotive provide stable, growing revenue backlog
Aero partnerships include Boeing, HondaJet, Bombardier, Gulfstream, Daher and Beechcraft
Auto partnerships include Ford, Daimler, Mercedes, BMW
With TAM exceeding $44 billion, CAGR of 23% through 2028, Gauzy well-positioned for continued growth
Trades at just 2.8 times 2025 consensus sales
By Jarrett Banks and John Jannarone
When Gauzy Ltd. CEO and Co-Founder Eyal Peso encountered issues with light control in his Bauhaus apartment, he didn’t call the building manager. Instead, he and fellow Co-Founder Adrian Lofar did some research on light control and started a company.
Since then, they have grown to 656 employees and developed their own IP, materials, and nanoparticles for various applications. Initially, they focused on architecture but quickly expanded into automotive and aerospace markets.
Gauzy is now a global leader in light and vision control technologies, and has kicked off 2024 with impressive momentum.
The company reported 48% revenue growth in the first half after a successful IPO that raised $75 million in June. Equally impressive was the company’s gross margin, which expanded to 27% in the second quarter—a clear indicator of Gauzy’s ability to scale its operations effectively, driven by strong demand across its key markets in aeronautics, architecture, automotive and safety-tech.
Gauzy’s technology includes smart glass, ADAS (Advanced Driver Assistance Systems) and traditional shading solutions. The company’s vertical integration and asset-light business model are crucial to its rapid expansion, with manufacturing sites in Israel, Germany, France, and the U.S., supported by 96 certified partners across more than 30 countries.
This global presence is complemented by a solid customer base, exceeding 1,000 customers. The company’s long-term supply agreements, especially in the aerospace and automotive sectors, offer a strong revenue backlog and provide consistency in financial performance.
Notably, no single customer accounted for more than 9.3% of Gauzy’s total revenue in 2023, underscoring the company’s diversified revenue streams.
The company recently announced that it expects to generate an aggregated revenue of $240 million over the next 10 years from aeronautic cockpit shading. Gauzy has an agreement with Boeing for its cockpits and has 95% of the market.
Moreover, Gauzy’s successful conversion of all its convertible debt into equity at IPO has strengthened its balance sheet, positioning the company for sustainable growth. With a total addressable market exceeding $44 billion, growing at a CAGR of 23% through 2028, growth prospects remain bright.
Gauzy’s Automotive segment saw revenue soar 80% in the second quarter. Moreover, the company’s Safety Tech segment continues developing and expanding its AI-powered ADAS technology for commercial vehicles. The team is ramping up production with Ford trucks for a mirrorless ADAS system by the end of the year. Gauzy also has partnerships with the likes of Daimler, Mercedes and BMW.
Some investors may ask if Gauzy can swing to positive cash flow without needing fresh capital. But the company is firmly on track to reaching that goal.
Indeed, thanks to the successful IPO, Gauzy currently has $98.6 million in cash and undrawn credit. It also burned only about $15 million in the first half, excluding IPO and other one-off expenses.
With healthy gross margins and operating leverage kicking in, that cash cushion looks easily sufficient to fund the business until it becomes cash-flow positive. Barclays analyst Dan Levy expects the company to reach Ebitda breakeven in the fourth quarter and cash-low breakeven in 2027, according to a client note published earlier in August.
Turning to valuation, the company trades at just 2.8 times 2025 consensus sales, according to Bloomberg. That looks low considering the company’s current growth rate, extended order backlog and clear path to positive cash flow.
Investors should keep a close eye on how Gauzy has continually beat analyst expectations, and is notably the only company in Israel to go public in the U.S. during wartime. That’s some amazing visibility.
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