Maytronics recorded a loss of 8 million shekels in the second quarter, sales hit by the strengthening of the shekel

Maytronics continues to experience a decline in sales, but excluding currency exchange rates, it seems that they have stabilized slightly. The manufacturer of pool cleaning robots from Kibbutz Yizre'el notes that it estimates it will be able to meet its debt obligations in the coming year.

Against the backdrop of negotiations for an investment by the FIMI fund and the acquisition of control over the company, Maytronics published its second-quarter reports, in which sales stood at 437 million shekels, a 15% decrease compared to the corresponding quarter. However, excluding the strengthening of the shekel, this is an increase of 0.7%. In the first half of the year, the company generated 747 million shekels – a decrease of 13.3%, but excluding foreign exchange, an increase of 0.1%. The company manufactures in Israel, pays employees in shekels, and sells in foreign currency abroad, mainly in dollars and euros. The strengthening of the shekel negatively affects its results.

Less positive figures were recorded in the operating profit line, which fell to only 8.3 million shekels in the second quarter compared to a profit of 33.8 million shekels in the corresponding quarter. For the half-year, Maytronics recorded an operating loss of 2.5 million shekels in light of the catastrophic first quarter it experienced, compared to an operating profit of 68.7 million shekels in the corresponding half-year in 2025. In the net profit line, the company recorded a loss of 8 million shekels in the second quarter compared to a profit of 14.5 million shekels in the corresponding quarter, and a loss of 34.5 million shekels in the first half compared to a profit of 30 million shekels in the corresponding half-year.

Currency exchange rates hurt Maytronics' revenues by 81 million shekels in the second quarter, and by 116 million in the half-year. Thus, in the USA, the weakening of the dollar against the shekel negatively affected Maytronics' sales, which fell by 9.8% in the quarter and 6% in the first half of 2026. However, excluding currency exchange rates, the company recorded sales growth in the USA of 9.6% in the quarter and 12.4% in the first half. Alongside the relative recovery in sales in the USA, Europe continues to weigh on the results. Sales in Europe plummeted by 29.5% in the quarter and by 28.6% in the first half of the year. Excluding the decline of the euro against the shekel, there was a 15.3% decrease in revenues in Europe in the quarter and 20.1% in the half-year.

Maytronics attributes the decline in Europe to internal operational challenges but also to the diversion of Chinese products to the continent in light of high tariffs in the USA. Also in Oceania, where it is the winter season, sales growth was recorded. Sales there rose by 0.8% in the second quarter and 2.3% in the half-year, and excluding exchange rates - by 11% in the quarter and 9% in the half-year. The company identifies strong demand for its products.

Sales were eroded mainly in robots for cleaning private pools, the company's main product, with revenues of 301 million shekels in the quarter - a decrease of 18.6% compared to the corresponding quarter. The company managed to supply only part of the demand, and in addition, suffered from the erosion in currency exchange rates. Specifically, in robots for public pools, there was an increase of 13.7% in sales, amounting to 32 million shekels, mainly thanks to North America. It should be noted that FIMI, which is interested in investing in the company, is counting on increasing sales in this field.

Maytronics' equity was eroded to 366 million shekels compared to 426 million at the end of 2025. Cash flow fell to 65 million shekels compared to 182 million shekels in the corresponding quarter due to a worrying increase in customer balances. Slightly jarring is the increase in general and administrative expenses from 33 to 35 million shekels in the quarter in light of an increase in salary expenses due to one-time hours related to changes in the company's top management. Maytronics has debts of 600 million shekels to banks and is in negotiations with FIMI for an injection of 300 million shekels into the company in exchange for control.