Afcon Holdings Aims to Double Revenue to $1 Billion by 2030

Afcon Holdings plans to double its annual revenue to NIS 3.5-4 billion (approximately $1 billion) by 2030, focusing on infrastructure investments in electricity, data centers, power plants, and mass transit systems, alongside strategic acquisitions. This growth strategy follows a period of losses and underperforming construction activities. The company, controlled by the Shlomo Group, reported NIS 1.735 billion in revenue and NIS 102 million in net profit for the four quarters ending June 2026, representing a 5.9% net profit margin. If this margin is maintained, net profit could reach NIS 206-235 million by 2030.

CEO Dudi Harari explained that approximately 25% of the projected future net profit, estimated at NIS 240 million, will come from mergers and acquisitions, contributing around NIS 60 million. The remaining NIS 80 million will stem from organic growth within the group. Afcon's current order backlog stands at NIS 2.5 billion, necessitating a continuous backlog of NIS 4-4.5 billion to meet its revenue targets. An additional NIS 1.2-1.5 billion in annual revenue is expected from sources not included in the backlog, such as services, trade, and energy sales, increasing recurring revenues to 35% of total income.

The company is targeting a 15% share of a NIS 70 billion accessible market in areas like electricity infrastructure, data centers, mass transit, and the semiconductor industry. Harari highlighted the growing demand for energy in Israel, driven by data centers, electric transportation, and public transit expansion, which necessitates significant investments in power generation and transmission. Afcon is also pursuing opportunities in the NIS 6-9 billion Infra 2 package for the Gush Dan Metro, focusing on electrical, control, and communication systems.

Afcon is also developing its electric vehicle charging business, Afcon EV, anticipating consolidation in the market from 10-12 operators down to about five strong players. The company is preparing to spin off and potentially IPO its renewable energy division, Afcon Energy, with an estimated valuation of NIS 800-900 million, a different structure than a previously failed merger attempt with Sunflower. Despite current market challenges in the renewable energy sector, Afcon projects its renewable energy division to achieve an EBITDA of approximately €50 million by 2030.