Tadiran Reports Strong Sales Growth in First Half of 2026 Despite Five Contract Cancellations
Tadiran released its financial results for the second quarter and first half of 2026, marking its first report since going public. The company showed positive growth across all three sectors it operates in: income-generating properties, construction, and real estate development. Notably, Tadiran's real estate development sales increased significantly, with 294 housing units sold in the first half of 2026, surpassing total sales for all of 2025. The sales generated 905 million shekels in revenue, of which Tadiran's share was 433 million shekels.
In the development sector, revenues for the quarter reached 325 million shekels, a 70% increase compared to the same period last year. Gross profit for Q2 was approximately 86 million shekels, representing 26.6% of revenues, and the half-year gross profit totaled about 129 million shekels. Net profit for Q2 was 25 million shekels, down from 42 million shekels in Q2 2025, while the half-year net profit was 44 million shekels compared to 49 million shekels in the previous year. The company noted that five contracts were canceled since the start of 2026, a relatively low number compared to competitors.
The average price per housing unit, including VAT, was 3.1 million shekels in the first half of 2026, down from about 4 million shekels in 2025, excluding luxury projects like Rothschild. Tadiran attributed the price decline to a shift in sales mix, with most sales concentrated in three main projects: "Between the Boulevards" urban renewal in Tel Aviv's Yad Eliyahu neighborhood, and the "Northern Star" phases A and B, a joint project with Yuvalim in Ashdod. Sales in these projects were 136, 78, and 51 units respectively, with a slight decrease in price per square meter across all three.
In the office sector, Tadiran signed leases for 34,000 square meters in the Beyond Tower, generating 59 million shekels annually. The leasing rate for office space in the project reached 70%, with rental prices increasing to 167 shekels per square meter at finished levels, up from 145 shekels at the end of 2025. Tadiran's net profit attributable to shareholders for the first half of 2026 was about 144 million shekels, a 36% increase from 106 million shekels in the same period last year. The adjusted net profit for Q2 was 73 million shekels, slightly down from 77 million shekels in Q2 2025, mainly due to lower real estate revaluation gains.
During the first half of 2026, Tadiran executed 81 projects totaling 6,078 housing units and 690,000 square meters of office, commercial, and industrial space. Seventeen projects comprising 889 units and 76,000 square meters were completed by the report date. Since the start of the year, the company secured five new construction projects valued at approximately 800 million shekels.
