Shapir Infrastructure Reports Sharp Profit Surge Driven by Industrial Growth and Revaluation Gains
Shapir Infrastructure experienced a significant performance improvement in the second quarter of 2026, driven by increased execution rates in its industrial and infrastructure sectors, alongside substantial revaluation profits. The company reported a 21% rise in total revenues compared to the same quarter in 2025, reaching approximately 1.68 billion shekels, with gross profit increasing by 24% to about 224 million shekels. Operating profit soared by 173% to 246 million shekels, and net profit attributable to shareholders jumped 135% to 108 million shekels, boosted by revaluation gains of around 124 million shekels.
The industrial sector, Shapir's main area of activity, saw revenues climb 28% to roughly 772 million shekels, accounting for 46% of total revenues. This growth was accompanied by a 53% increase in sector profit to about 127 million shekels and an improvement in gross margin from 14% to 16%, attributed to enhanced production efficiency following investments. Meanwhile, the infrastructure sector, responsible for 44% of revenues, grew 22% to 746 million shekels but experienced a 21% drop in sector profit to 33 million shekels and a decline in gross margin from 7% to 4%, due to the long-term nature of projects and cost fluctuations.
Revaluation profits mainly stemmed from Shapir's senior housing network, where it holds a 68% stake, including recent acquisitions and completions of facilities in Buda and Kfar Saba. The company continues to pursue control over Bazan Petroleum Refining, despite regulatory hurdles requiring the sale of its gas distribution companies first. Shapir also expanded its real estate sector revenues by 88% to 162 million shekels, though it faces risks from a dispute with government bodies over a Beit Shemesh project.
In July, Shapir sold 20% of its rights in the Highway 6 North and Highway 16 concession for about 190 million shekels and won a tender to extend and operate Highway 6 North with an investment of approximately 2 billion shekels. Controlled by the Shapira brothers with a 56% stake, Shapir's market value stands at around 15.3 billion shekels, with its stock rising 64% over the past year, outperforming major Tel Aviv indices.
