Following the signing of the agreement with Shikun & Binui: Generation presents an increase in profits and value
Investment fund Generation Capital concluded the second quarter of 2026 with a pre-tax profit of 826 million shekels. Cumulative profit for the first half of the year reached 1.05 billion shekels.
The investment fund Generation Capital concluded the second quarter of 2026 with a pre-tax profit of 826 million shekels, and a cumulative profit of 1.05 billion shekels for the first half of the year as a whole. This is a significant increase compared to the profit of 132 million shekels recorded in the corresponding period of last year.
The primary driver of this profit jump was the revaluation of assets in PowerGen, the fund's energy arm, and in BlueGen, its environmental arm, which increased the value of the fund's investment portfolio. Profit from revaluations totaled 761 million shekels.
In PowerGen, a value increase of 287 million shekels was recorded, partly following the Phoenix investment, which reflected a valuation of 3.25 billion shekels for the company. After the quarter ended, PowerGen signed an agreement to acquire Shikun & Binui Energy, a deal currently awaiting regulatory approval, which is not yet included in the fund's asset value or future forecasts.
In BlueGen, a value increase of 474 million shekels was recorded, driven by the expansion of waste operations, the establishment of a dedicated arm, and an increase in the EPC backlog to approximately 1.7 billion shekels.
The value of Generation's investments stood at 5.8 billion shekels at the end of June, compared to approximately 5 billion shekels at the end of the first quarter, excluding the holding in the British railway company Porterbrook, which was sold. Alongside value increases, current cash flow from investments rose: in the first half, the fund received 112 million shekels, a 70% increase compared to 66 million shekels in the same period last year.
Generation expects a net cash flow of approximately 250 million shekels in 2026 and an average annual gross cash flow of approximately 370 million shekels until 2030 from existing assets. The aggregate EBITDA of portfolio companies totaled 310 million shekels for the quarter and 615 million shekels for the half-year.
The fund's annual internal rate of return since inception stands at approximately 21%, and the NAV per share, excluding deferred taxes, is 2.53 shekels. The fund announced a dividend distribution of 25 million shekels for the seventh consecutive quarter and aims for a cumulative distribution of at least 100 million shekels in 2026.
