Ackerstein Group Shares Plunge After Weak Q2 Results and CEO Departure

Ackerstein Group, an Israeli construction and real estate company controlled 68% by the Ackerstein family, reported a sharp decline in its second-quarter financial results. Revenues fell about 15% year-over-year to approximately 190 million shekels, driven by reduced client activity partly due to operational restrictions linked to the "Roaring Lion" military operation. For the first half of the year, revenues dropped 12% to around 399 million shekels.

The company’s net profit plummeted over 85% in Q2 to roughly 2.3 million shekels, with a half-year net profit decline of 48% to about 19.8 million shekels. The profit drop was attributed to lower revenues, increased transportation costs due to rising energy prices, and higher administrative expenses.

Alongside the disappointing financial results, Ackerstein announced the resignation of CEO Amit Lang, who served less than a year after his appointment earlier this year. Lang previously held CEO roles at Mekorot and the Ministry of Economy. He replaced Ehud Danuch, who stepped down after 18 months. The company expects Tzvi Ackerstein, son of Chairman Giora Ackerstein and a controlling shareholder, to succeed Lang as CEO. Additionally, CFO Eyal Weinberg was appointed deputy CEO while retaining his current role.

Ackerstein also plans to appoint an independent chairman of the board, separate from controlling shareholders. Following the weak earnings and CEO change, Ackerstein’s stock has lost about 16% over the past year, now valued at approximately 2.1 billion shekels.

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