Amal CEO Admits Q2 Results Disappointing Amid Operational Challenges and Expansion Plans

Amal, an Israeli nursing and workforce company, released its second-quarter financial results since its 2025 IPO, reporting a slight decline in profitability despite a 4% revenue increase to approximately 1.13 billion shekels. The company’s net profit fell marginally to 66 million shekels from 67.6 million in the same period last year. CEO Dalia Kurkin acknowledged that the results were below expectations but emphasized ongoing improvement trends.

The company’s stock has dropped over 15% since its IPO, trading at a market value of 2.3 billion shekels, down from the 2.6 billion at IPO and below the 3 billion shekels target. Amal operates in four sectors: home care, nursing homes, mental health, and special populations. The main challenge was a 3% decrease in home care hours, Amal’s largest segment, attributed to management changes. Kurkin noted that most branches are recovering, but five still drag results down. Increased expenses related to wage updates and preparations for a new National Insurance tender also pressured operating profit, which remained flat at 96.7 million shekels.

The new National Insurance tender is expected to negatively impact annual operating profit by up to 20 million shekels due to tougher conditions. Kurkin stressed the importance of dedicated staff in maintaining service quality, especially in difficult cases. Other segments showed modest improvements: nursing homes (12% of activity) benefited from higher government tariffs, mental health (8%) continued double-digit growth despite staffing challenges, and special populations (20%) saw revenue and profitability gains. Amal plans to expand in nursing homes through acquisitions or new construction, hindered currently by limited housing availability.

Amal announced the acquisition of full ownership of a home care company with 12 branches and about 100 million shekels in turnover for 72 million shekels, pending regulatory approval. In May, it acquired 75% of "Kesher," a special needs company, awaiting welfare ministry approval. These acquisitions are expected to add roughly 190 million shekels in revenue and 19-20 million shekels in profit. Kurkin highlighted Amal’s expertise in identifying, acquiring, and integrating companies as a key growth strategy.

The company’s CFO, Yiftach Wolf, noted some recovery compared to a sharper profit decline in the previous quarter. Kurkin also mentioned plans to enter new disciplines serving special populations, including homeless individuals and people on the autism spectrum, aiming to increase revenue and profitability over time.