Electra Group Shifts Focus to Long-Term Infrastructure Operation and Maintenance
Itamar Deutscher, CEO of Electra Group, outlined the company’s evolving business strategy at the Calcalist National Economic Conference, emphasizing a shift from traditional contracting to long-term infrastructure operation and maintenance (O&M). Deutscher explained that while Electra’s core business remains construction and contracting, the group is increasingly focusing on initiating and operating large national infrastructure projects that generate recurring revenues and stable growth, rather than relying on quarterly results. Electra’s O&M activities, including elevators, air conditioning, generators, and facility management through Electra FM, now contribute about two-thirds of the company’s EBITDA.
A key project highlighted is the metro infrastructure in Israel, divided into two phases: Infra 1, the preliminary engineering and infrastructure stage managed by the state through NTA, with tenders expected later this year; and Infra 2, the execution phase where Electra plans to leverage its extensive experience in light rail and public transportation operations. Deutscher stressed that the metro will be a vital component in a multi-modal transportation network, integrating autonomous vehicles, trains, and light rail.
Electra has also expanded its role in public transportation operations through Electra Afikim, transitioning from pure construction to long-term operation of transport infrastructure, which aligns with the company’s strategy to secure steady cash flows protected by regulation. In the data center sector, Electra is involved in most new Israeli projects and international ones, including Google Austria and sites in Poland and Finland, with over 3 billion shekels in ongoing projects. The company’s strength lies in fast, complex electro-mechanical installations and critical components like Western-made generators, which are in high demand.
In the U.S., Electra USA was formed by acquiring four New York companies, enabling participation in large federal projects with a backlog nearing $2 billion, including a $950 million prison in Queens. Deutscher highlighted the company’s ability to offer integrated electro-mechanical solutions, reducing client risks and driving growth in this market.
Regarding real estate, Electra’s construction arm has not yet seen market changes, while its residential development focuses on first-ring suburbs of Tel Aviv. Sales volumes have normalized, possibly reflecting a new market baseline. Deutscher identified the main challenge for developers as financial frameworks not matching market realities, but noted Electra’s pricing control advantage.
Looking ahead, Deutscher emphasized growth through long-term project initiation and operation, particularly national infrastructure investments that provide EBITDA stability through sustained income streams, rather than short-term planning cycles.