Afcon’s Quiet Transformation Is Turning It Into a Major Energy and Infrastructure Player
Over the past three years, Afcon Group has undergone a major strategic shift under chairman Israel Raif and CEO David Harari. The company has moved away from simple concrete-and-steel contracting and toward technology-heavy projects in energy, control systems, storage, and smart transportation, positioning itself in markets with long-term growth potential.
That shift is showing up in the latest numbers. Afcon opened 2026 with record financial momentum, as first-quarter net profit jumped 82% from a year earlier to about 25 million shekels, while operating profit rose similarly to about 37.4 million shekels. The main growth engine was its systems and infrastructure division, which saw faster activity and stronger operating margins. Over the past year, the stock has risen about 220% to a market value of 2.9 billion shekels.
Management says it wants to double the company’s results within three years, aiming to lift annual net profit to about 200 million shekels from roughly 100 million now. The plan relies on focusing on four core segments, electro-mechanics, technologies, trading and services, while exiting non-synergistic businesses and pursuing significant mergers and acquisitions. Afcon also sees underpriced growth drivers in renewable energy development in Israel and abroad, and in public EV charging, where it holds about 28% of the market with roughly 1,950 active charging points and recently increased electricity sales by about 40%.
The order backlog reached about 2.5 billion shekels in the first quarter, up 20% from the end of 2025. Recent wins include a 310 million shekel project for OPC Energy to build Israel’s largest substation for a private company, and a 500 million to 600 million shekel railway electrification program for Israel Railways, under which Afcon is building nine substations at once. The company also reported positive operating cash flow of about 55 million shekels and a 55 million shekel reduction in net financial debt after early bond repayment. The article notes that institutional investors, led by Migdal, increased their stake in April to about 8.7%, and argues that Afcon stands to benefit from Israel’s large infrastructure needs, AI-driven electricity demand, and smart infrastructure projects, though execution, competition, and regulation remain key risks.
