Israel Shipyards Reports 21.6% Revenue Growth Led by Shipyard and Port Operations
Israel Shipyards, owned by businessmen Shlomi Fogel, Assi Shmelzer, and Sami Katzav, announced a strong performance for the second quarter of 2026, driven mainly by its shipyard, port, and building materials sectors. The group’s revenues rose by 21.6% to 428.5 million shekels compared to the same quarter last year. Net profit surged to 15.6 million shekels, a 22-fold increase from 687,000 shekels in Q2 2025. Gross profit increased by 84.1% to 63.2 million shekels, and operating profit jumped to 28.8 million shekels from 586,000 shekels previously. Adjusted EBITDA rose 83.8% to 60.7 million shekels.
The shipyard sector showed the most significant growth, with revenues up 76.5% to 83 million shekels and sector profit rising 289.5% to 14.8 million shekels. This improvement is attributed to progress in military vessel projects, notably the Reshef project, expected to contribute more in 2027 and 2028. Additionally, the company began a $62 million project to supply four vessels to a foreign government. The shipyard’s order backlog stands at 2.52 billion shekels, indicating much of the growth is based on existing contracts.
Port operations also improved, with revenues increasing 28% to 55.5 million shekels and profits up 83.3% to 14.3 million shekels. This was driven by higher cargo volumes due to an additional berth and the operational ramp-up of a new grain silo project completed at the end of 2025. The building materials sector recovered with revenues rising 14.8% to 276.7 million shekels and profits increasing 58.1% to 31.8 million shekels, helped by higher cement prices and exchange rate effects.
Conversely, the maritime transport sector saw a 24.8% revenue decline to 15.8 million shekels, mainly due to lower shipping rates and operational delays caused by winter weather. Despite this, sector profit remained stable at 2.6 million shekels. The company is expanding its fleet, recently acquiring a 39,000-ton cargo ship for $14.2 million, expected to complete by the end of 2026.
Israel Shipyards’ drone interception solutions subsidiary, Eironos Systems, remains in the investment phase, with R&D expenses of approximately 2.8 million shekels in Q2 and no current profit contribution. In July, the group strengthened its finances by raising 200 million shekels through its first bond issuance on the Tel Aviv Stock Exchange, exceeding initial demand. As of June 30, 2026, the company’s equity stood at 946.6 million shekels, with cash and short-term investments totaling 406 million shekels. The company is awaiting results from a tender to acquire a 51% stake in the Port of Lavrion in Greece as part of its international expansion strategy. The impact of the current sensitive security situation remains uncertain.
