Brand Group backlog hits 3.3 billion shekels as H1 revenue jumps 75%
The company reported strong results for the first half of 2026, with revenue reaching 705.8 million shekels and a positive operating cash flow of 43.7 million shekels.
Brand Group concluded the first half of 2026 with an order backlog of approximately 3.3 billion shekels and a consolidated EBITDA of 46.6 million shekels. The backlog grew by 300 million shekels in the second quarter alone.
The group's revenue for the first half rose by 75% to 705.8 million shekels, while second-quarter revenue grew by 86% to 357.7 million shekels. This growth is primarily driven by the consolidation of Naton Group following the acquisition of control in November 2025.
Financial and Operational Highlights
The consolidated EBITDA of 46.6 million shekels was distributed as follows:
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Engineering: 19.7 million shekels
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IFM services (Naton Group): 17.6 million shekels
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Software and control: 9.7 million shekels
Cash flow from current operations in the first half reached 43.7 million shekels, compared to a negative flow of 19.6 million shekels in the same period last year. As of June 30, 2026, the company's cash and cash equivalents stood at approximately 64 million shekels, with equity at 208.7 million shekels.
Sectoral Performance
The infrastructure sector continues to show improvement. Neutralizing one-time effects (a settlement agreement on an old project and the sale of real estate in Yeruham), the sector's gross profit in the second quarter was 4.6 million shekels, compared to a loss of 12.2 million shekels in the fourth quarter of 2025.
Naton Group continues to expand its long-term contract base, securing new agreements in management, maintenance, and security services with an expected turnover of hundreds of millions of shekels.
Strategic Initiatives
The company completed the sale of its renewable energy business in Poland and Italy to Sunflower for 33.3 million shekels. A profit of approximately 19 million shekels from this transaction is expected to be recognized in the third quarter. These steps are part of the company's strategy to focus resources on core activities: services, engineering, infrastructure, and technology.
Liran Giladi, Chairman and CEO of Brand Group, stated: "We are entering the second half of 2026 with balanced, strong business areas and a quality backlog. We believe the trend of improving results will continue throughout the year."
