Shikun & Binui Energy Boosts Revenues 40% Despite Currency Losses Ahead of Sale to Generation Fund
Shikun & Binui Energy reported a 40% increase in revenues for Q2 2026 compared to the same quarter last year, reaching 94 million shekels. The company improved its gross profit margin from 25% to 43% and sharply reduced its operating loss from 37.3 million shekels to 6.7 million shekels. However, financing expenses more than doubled to 75.4 million shekels, driven mainly by negative revaluation of loans due to a strong shekel, resulting in an 11% increase in net loss to 79.9 million shekels.
The company’s core business is natural gas power generation through its 50% stakes in the Ramat Hovav and Hagit Mizrach power plants and full ownership of the Etgal power plant in Ashdod, which began operations in May 2025 with a capacity of 189 megawatts. Revenues from Etgal reached 174 million shekels, up 1% year-on-year, offset by declines in the other plants due to electricity tariff caps imposed by the Electricity Authority in February. The fastest-growing segment was its European operations, with profits rising to 7.9 million shekels from 2.6 million, following the launch of a 71-megawatt solar project in Romania in Q3 2025 and a new 104-megawatt solar project with 193 megawatt-hour storage starting commercial operation in June 2026.
A reversal of impairment losses on the Etgal project and a US project helped reduce operating losses. Nonetheless, the strong shekel caused a 74% increase in financing losses related to loans for European and US activities, significantly impacting the bottom line. Shikun & Binui Energy holds an installed project portfolio of 3.3 gigawatts and 4 gigawatt-hours of storage capacity, with an additional 900 megawatts and 3.3 gigawatt-hours under construction or planned. Its main market remains Israel, with 2.75 gigawatts of operational capacity and 3.6 gigawatts of storage.
In June, the company completed financial closure for a 150-megawatt solar project with 460 megawatt-hours of storage in Eshkol, expected to begin commercial operation in 2027. At the end of July, Generation Fund agreed to acquire Shikun & Binui Energy for 4.45 billion shekels through a reverse triangular merger via its subsidiary PowerGen. This price represents a 12% premium over the company’s current market value of just under 4 billion shekels. Following the deal, Shikun & Binui Energy will cease to be publicly traded but will continue reporting due to outstanding bonds.
