Electra Reports 60% Profit Surge Amid Strong Revenue Growth and Mixed Sector Results
Electra Group Ltd. reported a significant rise in its financial results for the second quarter of 2026, with revenues increasing by approximately 17% to around 4 billion shekels and net profit soaring by about 60% to 109 million shekels. The company's EBITDA also grew by 21.8% to 263 million shekels, while its backlog of work expanded to approximately 44 billion shekels. These figures reflect strong operational performance across most sectors.
The projects sector for buildings and infrastructure saw a revenue increase of 34.7% to 2.1 billion shekels, driven by higher execution volumes and the upcoming integration of Ter-Adama company by the end of the third quarter of 2025. The operations, service, and maintenance sector revenues rose by 10.8% to 935 million shekels. The real estate development and construction sector's revenues climbed 26.1% to 237 million shekels, and the franchising sector increased by 37.5% to 367 million shekels, mainly due to higher income from Electra Afikim and a sludge drying facility project.
However, the overseas buildings and infrastructure projects sector experienced a 23% revenue decline to 504 million shekels, attributed to dollar exchange rate erosion and reduced European operations. Half-year comparisons show a 14% revenue drop and a 41% decrease in operating profit, linked to lower profitability in the U.S. segment.
For the first half of 2026, Electra's revenues rose 15.7% to 7.85 billion shekels, with net profit up 26% to 169 million shekels. The board approved a dividend distribution of about 41 million shekels. Recent notable events include winning a tender for the planning, financing, construction, operation, and maintenance of the Highway 5 fast lanes project, valued at approximately 3.9 billion shekels over 25 years, and signing financial closure agreements for the Haifa-Nazareth light rail project, where Electra holds a 40.05% stake.
Additionally, in June 2026, Electra completed the first phase of a strategic investment deal with Tashi, which acquired a 33.3% stake in Electra Afikim and Electra Motors for a total valuation of about 750 million shekels. Electra will receive approximately 163 million shekels from this transaction in two stages. CEO Itamar Deutscher emphasized ongoing growth and profitability improvements, alongside expanding the group's business sectors and building long-term cash flow sources to ensure future growth.
