TipRanks reporters recently sat down with Guy Saadi, CEO of Tondo Smart (TASE:TNDO), to get an inside look at the operations of this rapidly growing company, which has seen its share price surge by over 200% year-to-date. Saadi expressed high satisfaction with the growth of the company’s new divisions, noting that the performance serves as definitive proof that the new strategic direction is the right one.
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Tondo Smart views urban infrastructure as a versatile platform for solving a wide array of challenges, ranging from energy management to municipal defense and security. The company distinguishes itself by upgrading traditional city infrastructure into “Smart Infrastructure” using AI and IoT technologies, positioning itself as a key player in the Smart City sector.
Founded in 2018 and having gone public in Tel Aviv in 2021, Tondo leveraged its resources for extensive R&D. Since the beginning of 2026, the company has successfully transitioned into “Go to Market” phase. The market has responded enthusiastically, with the stock rallying sharply, fueled in part by expectations of the company’s inclusion in leading defense indices.
In his interview with TipRanks, Saadi highlighted the company’s two primary pillars: the Smart Infrastructure Division and the Defense & Air Protection Division. According to Saadi, this dual-pronged strategy creates a significant competitive moat.
Smart Infrastructure: Driving Operational Efficiency
Tondo Smart began as a firm focused on energy management systems. Its Infrastructure Intelligence solutions allow local authorities to manage all connected urban devices—streetlights, sensors, cameras, energy meters, and control cabinets—through a single unified interface.
For instance, the company’s smart streetlights and traffic signals can independently monitor the municipal energy grid and identify the source of technical faults. These systems are essentially “self-healing,” as they are connected to a wide wireless mesh network of citywide devices.
Real-time status updates and fault alerts allow maintenance teams to pinpoint issues instantly. Furthermore, lighting adjusts automatically based on the time of day, weather conditions, and traffic flow. Tondo’s smart infrastructure can reduce municipal operational costs by up to 60%. Currently, the company operates approximately 250,000 smart streetlights in Israel, alongside operations in various international cities.
Defense and Sky Protection: The New Frontier
In 2025, the Israeli Ministry of Defense adopted Tondo Smart’s advanced protection solutions. Tondo met the challenge by developing a unique solution that integrates into existing urban infrastructure. Now, additional countries are expressing interest in these products after they demonstrated high efficacy and clear advantages over traditional alternatives.
This innovative approach grants “dual-use” functionality to city assets. Beyond energy efficiency, Tondo’s systems mitigate external urban risks (some of which remain classified).
The systems are particularly suited for high-profile events such as the World Cup and the Olympics, as well as for complexes requiring air and ground movement monitoring, for both security and privacy protection. Tondo is currently in talks with several cities in North America and Asia to expand its Air Protection operations.
Competitive Advantages and Scalability
Saadi emphasized that Tondo lacks direct competitors. While Signify N.V. (SFFYF) offers smart lighting, it lacks a defense vertical.
A key growth driver for Tondo is its R&D talent, with many developers hailing from the IDF’s elite intelligence units. The company is currently focusing on scalability, and has begun to implement its products in cities worldwide without the need for significant additional investment per location.
With existing deployments in India and the United States, Tondo Smart currently holds an order backlog of over NIS 31 million, split between the energy and defense sectors. Saadi noted that defense and sky protection activities are expected to expand gradually until they constitute approximately 70% of the company’s total business activity.
Looking Ahead
In its most recent financial report, Tondo Smart announced a 30% increase in revenue and a significant improvement in gross margins to 44.5%. This shift signals a move toward imminent profitability following a long-term investment phase.
The company also recently reported a strategic investment from the Jerusalem Post Group, which now holds a 7% stake in the company. This move comes after the group’s leadership conducted deep due diligence, expressing full confidence in Tondo’s strategy and sales potential.
Saadi remains confident that the company’s pivot toward the defense and security sectors will make 2026 an exceptional year, continuing to prove that Tondo’s strategy will reward its shareholders.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.