Ganon Group Stock Soars to $1 Billion Valuation Amidst Ownership Change
Ganon Group, formerly controlled by Viola Group, has experienced a dramatic turnaround, with its market capitalization surpassing 1 billion shekels ($270 million) for the first time last week. This surge follows a period of significant decline, where its stock dropped 52% between April 2022 and April 2025, while the TA-125 index rose 16%. The shift began around April of last year, coinciding with a change in control.
In April 2025, Ofer Galboa, owner of Challenge Air Cargo (formerly CAL), and CEO Guy Regev acquired 77% of Gaon Holdings, the primary holding company of Ganon Group. Ganon Group, founded in 1951 and previously owned by businessman Beni Ganon before Viola Group's control from 2013, specializes in manufacturing infrastructure pipes for water, fuel, and gas.
This core business generated 487 million shekels in revenue in 2025, representing 69% of the company's total income. A significant portion, 27% of revenue (252 million shekels), came from steel pipes for water and sewage, with Mekorot, the national water company, being its main client, accounting for 22% of annual revenue. Ganon Group is Mekorot's sole supplier of large-diameter pipes.
The company is also involved in infrastructure projects, including pneumatic systems, and benefits from its role as a material manufacturer. Additionally, it sells and markets related products to contractors, construction firms, and private customers. Analysts attribute the market's renewed confidence to the company's 2025 annual report, which revealed an order backlog of approximately 1 billion shekels, nearly double that of the previous year.
This backlog continued to grow to 1.1 billion shekels by the end of June. The company's performance has improved, with 2025 revenues reaching 704 million shekels, an 8% increase from 2024, accompanied by a rise in operating profit margin from 6.4% to 10.2%. Net profit attributable to shareholders tripled from 11 million shekels in 2024 to 34 million shekels in 2025. The first half of 2026 continued this trend with an 11% revenue increase and a 56% rise in net profit.
