Afcon Aims to Double Revenue to $1 Billion by 2030, Eyes Energy Unit IPO
Translated & summarized from Bizportal by baba
Afcon Holdings plans to more than double its revenue to NIS 3.5-4 billion by 2030, focusing on infrastructure, services, and acquisitions. The company is exploring an IPO for its renewable energy division and aims to capture a 15% share of a NIS 70 billion infrastructure market. This strategy follows a shift from construction to infrastructure and systems, with growth expected in electricity, server farms, and mass transit. Chairman Israel Reif stated the company is in a strong position for future growth, prioritizing long-term value creation.
The story in 5 lines · by baba
- Afcon Holdings aims to double revenue to NIS 3.5-4 billion by 2030, targeting a 15% share of a NIS 70 billion market.
- The company is considering an IPO for its renewable energy division, which has a 1.9 GW portfolio.
- Afcon plans to double recurring service and maintenance revenue to over NIS 600 million annually by 2030.
- Acquisitions are expected to contribute 25% of net profit by 2030, up from 15% in 2025.
- Growth areas include electricity infrastructure, server farms, and mass transit, with a focus on infrastructure and systems.
Afcon Holdings, controlled by the Shlomo Group, has unveiled a strategic plan targeting revenues of NIS 3.5-4 billion (approximately $950 million to $1.08 billion) by 2030, more than doubling its current annual revenue of about NIS 1.74 billion. The company intends to expand its infrastructure operations in electricity, server farms, and mass transit, while also doubling its service activities and pursuing acquisitions. A potential initial public offering (IPO) for its renewable energy division is also under consideration.
This new strategy follows Afcon's recent shift away from construction to focus on infrastructure and systems. In the four quarters ending June 2026, the company reported revenues of approximately NIS 1.735 billion, EBITDA of about NIS 238 million, and a net profit of roughly NIS 102 million. The company aims for continued growth, focusing on maintaining profitability margins without setting a specific net profit target for 2030.
Afcon estimates the accessible infrastructure market at over NIS 70 billion in the coming years, with significant portions in electricity infrastructure (NIS 35-40 billion) and server farms (NIS 30 billion). The company aims to capture a 15% market share, which it believes translates to over NIS 10 billion in additional cumulative revenue. Key growth areas include electricity infrastructure, where it has a backlog of over NIS 1 billion, and server farm infrastructure, driven by increasing demand for data centers.
The company also plans to double its recurring revenue from service and maintenance activities to over NIS 600 million annually by 2030, up from about NIS 200 million in 2024. Acquisitions are expected to contribute significantly, with a target of 25% of net profit in 2030 coming from acquired activities and partnerships. The renewable energy division, with a portfolio of approximately 1.9 gigawatts, is being considered for a separate listing to allow for independent market valuation.
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