Paz Group Raises Quarterly Profit by 14% and Declares Additional 130 Million Shekel Dividend
Paz Group reported a net profit of 158 million shekels in the second quarter, marking a 14% increase from 139 million shekels in the same period last year. For the first half of the year, net profit reached 321 million shekels, or 304 million shekels excluding real estate revaluations, compared to 300 million shekels in the first half of 2025. The company announced a dividend distribution of 130 million shekels for the quarter, bringing total dividends paid to shareholders this year to 260 million shekels.
These results follow a first quarter net profit of 163 million shekels and the launch of the "Plan 800" strategic initiative, aiming for an annual net profit of 800 million shekels within three years. This target was set after Paz exceeded its previous goal, "Plan 500," two years ahead of schedule, finishing 2025 with a net profit of 578 million shekels. Gross profit for the quarter rose by 4.6% to 677 million shekels, while EBITDA, excluding a 9 million shekel capital gain from real estate sales in the previous year, increased by 3.5% to 354 million shekels. Operating profit, also excluding capital gains, grew 3% to 216 million shekels. The group’s free cash flow totaled 170 million shekels.
The energy for transportation sector drove much of the improvement, with sales jumping 21.9% to 2 billion shekels and gross profit up 13.9% to 311 million shekels. EBITDA in this sector rose 16.1% to 137 million shekels despite a 10% drop in fuel volumes sold, attributed mainly to the ongoing war. The food retail sector saw a 4% decline in quarterly sales to 822 million shekels, influenced by the timing of Passover, the war with Hezbollah, and fewer working days. However, operating profit margin slightly improved to 9.3%, with operating profit at 76 million shekels and EBITDA increasing 1% to 131 million shekels. The first half showed a more positive trend with a 1% sales increase and a 1% rise in operating profit.
The gas and renewable energy sector experienced a 17.1% revenue increase to 267 million shekels but a 20.5% drop in EBITDA to 35 million shekels, mainly due to the war and rising gas prices. Half-year figures were more favorable, with EBITDA up 9.7% and gross profit up 6.8%. The real estate sector’s EBITDA rose 2% to 51 million shekels for the quarter, excluding last year’s capital gains. Paz’s share price fell about half a percent following the results. CEO Nir Stern reaffirmed the company’s commitment to achieving the 800 million shekel annual net profit target within three years.
