After a weak quarter: Orit Industries to distribute an exceptional dividend of over half a billion shekels
The Sderot-based fuse manufacturer is set to distribute profits from the sale of shares in its subsidiary to shareholders, following a weak quarter in which it reported a 36% decline in revenue and an 85% drop in net profit. The stock is falling sharply in Tel Aviv trading.
Fuse manufacturer Orit Industries is experiencing a decline in operational volume from the peak levels recorded last year, yet it plans to distribute an exceptional dividend of approximately 530 million shekels to its shareholders. This distribution is part of the profits realized from the sale of shares in its subsidiary, Reshef, last year.
The company's revenue, under the management of Haim Stepler, stood at approximately 56.3 million shekels in the second quarter, a decrease of about 36% compared to the same quarter last year. This is partly due to the fact that production worth approximately 11.9 million shekels was delayed for delivery until the third quarter due to external shipping issues. For the first half of the year, revenue totaled approximately 133 million shekels, a 14% decrease year-on-year.
Net profit for the quarter plummeted by about 85% to approximately 9.7 million shekels. For the half-year, net profit decreased by 45% to approximately 52.4 million shekels. The company attributes the decline to unrealized losses from securities investments totaling 25.5 million shekels, which have since been offset by the recovery of the company's portfolio value.
Looking ahead, the company expects to finish 2026 with revenue of approximately 340 million shekels, a 42% decline compared to 2025. As of the end of the second quarter, the order backlog stood at approximately 671.8 million shekels, including a conditional order of 50 million dollars.
Of the 529 million shekels in dividends, 317.4 million will be paid next month, while the balance of 211.6 million is subject to court approval regarding the sale of 11% of Reshef shares. These amounts are in addition to the 104 million shekels already distributed this year.
Orit Industries CEO Haim Stepler stated:
"In recent months, we have implemented strategic steps vital to the company, including acquiring land for a large-scale production plant in the USA, receiving licenses from the Defense Export Control Agency (API) for key clients, a memorandum of understanding in Eastern Europe, and deepening operations in India. We are accelerating business activity and diversifying our growth engines; the completion of the fuse for loitering munitions, expected in the fourth quarter, will open significant international markets with exceptional potential."
Orit Industries operates through its subsidiary, Reshef Technologies. Despite a 1,000% surge in stock value over the last three years, the company's shares have lost over 50% of their value since the beginning of this year, with a current market capitalization of approximately 2.1 billion shekels.
