Azorim Reports 318 Million Shekels Revenue and Increased Cancellations in Q2 2026

Azorim completed the second quarter of 2026 with the sale of 55 apartments, compared to 35 sold in the first quarter. After canceling four sales, the company finalized 51 apartment sales in Q2, up from 24 net sales in Q1 following 11 cancellations. Overall, Azorim sold 90 apartments in the first half of 2026, down from 134 in the same period last year. After cancellations of about 16% of deals, the net sales for the half-year stood at 75 apartments.

The company reported revenues of 318 million shekels from apartment sales in Q2, a significant increase from approximately 120 million shekels in Q1, but slightly below the 372 million shekels recorded in Q2 2025. Since the start of the year, 15 sales contracts were canceled, totaling 48 million shekels, mostly in Q1. Seven cancellations occurred in the Frankfurt Boulevard area of Tel Aviv, where buyers had the option to cancel if building permits were not granted by a certain date. The cancellation rate currently exceeds the number of apartments sold. In comparison, 345 apartments were sold in 2025 with only 14 contract cancellations throughout the year.

The average price per housing unit in the first half of 2026 was about 4.25 million shekels including VAT, up from approximately 3.47 million shekels in the same period last year. Azorim highlighted seven key projects, selling nine apartments in total, including two projects where occupancy has begun: Moment and Exchange. In the Exchange project in Ramat Gan, four apartments sold at an average price of 43,900 shekels per square meter, with 64 units remaining out of 355. In Moment, Bat Yam, two apartments sold at 21,900 shekels per square meter, with 21 units left out of 572.

Net profit for the first half reached about 74 million shekels, with a sharp rise in Q2 to 54 million shekels from 21 million in Q1. Revenues from building, land sales, and construction services fell to approximately 347 million shekels in Q2, down from 427 million shekels in the same quarter last year. Gross profit in Q2 was about 110 million shekels, slightly higher than 107 million shekels in Q2 2025, with gross profit margin rising from 23.6% to 29%. Net financing expenses increased to 52 million shekels from 28 million shekels year-over-year, attributed to expanded credit for ongoing projects and new land acquisitions.

Currently, Azorim has 23 projects under construction and marketing, totaling over 4,900 housing units, including 12 urban renewal projects with 3,173 units under construction and 2,227 units for sale. CEO Adi Dana expressed optimism about macroeconomic trends such as expected interest rate stabilization, gradual improvement in project execution, and easing security conditions supporting the residential construction sector. She noted significant improvements in profitability and operational metrics in Q2, including a higher sales pace and gross profit margins. Since the start of the year, Azorim completed construction and began occupancy of major projects with over 1,200 units built amid three wars, and expects to complete three more projects by year-end.