Military projects pushed Israel Shipyards: quarterly revenue rose by 21.6%

Israel Shipyards, owned by businessmen Shlomi Fogel, Asi Schmeltzer, and Sami Katsav, concluded the second quarter of 2026 with improved results, led by its shipyard, port, and construction materials divisions. Conversely, the maritime transport sector recorded a revenue decline, while the drone interception development activity at Aeronaus Systems remains in the investment stage and is not yet profitable.

The group's revenue totaled 428.5 million shekels, a 21.6% increase compared to the same quarter last year. Net profit jumped to 15.6 million shekels—22 times higher than the 687,000 shekels recorded in the corresponding quarter. Gross profit rose by 84.1% to 63.2 million shekels, and operating profit reached 28.8 million shekels. Adjusted EBITDA rose by 83.8% to 60.7 million shekels.

Shipyard and Port Performance

Shipyard activity saw significant growth, with sector revenue climbing 76.5% to 83 million shekels and sectoral profit rising 289.5% to 14.8 million shekels. This is largely attributed to progress in military vessel production, specifically the Reshef project. The shipyard's order backlog currently stands at 2.52 billion shekels.

Port activity also improved, with revenue rising 28% to 55.5 million shekels and sectoral profit increasing 83.3% to 14.3 million shekels. Growth was driven by higher cargo volumes and the start of operational trials for new silos, intended to compete with the Dagon facilities.

Construction Materials and Maritime Transport

The construction materials sector saw revenue grow by 14.8% to 276.7 million shekels, with sectoral profit rising 58.1% to 31.8 million shekels. This recovery was supported by higher average cement prices, though rising raw material and transport costs partially offset these gains.

The maritime transport sector was the main exception, with revenue falling 24.8% to 15.8 million shekels due to lower shipping prices and operational delays. The group continues to expand its fleet, recently reporting the purchase of a cargo ship for 14.2 million dollars.

Financial Position

In July, the company completed its first bond issuance on the Tel Aviv Stock Exchange, raising 200 million shekels amid strong demand. As of June 30, 2026, the company's equity stood at 946.6 million shekels. The company is currently awaiting results from a tender to acquire 51% of the Lavrion port in Greece.