Record Revenue of $222.9 Million: Arad Group Reports Strong Financial Growth

Arad Group, a developer and manufacturer of water management and measurement systems, has reported strong financial results for the second quarter and the first half of 2026. The company recorded double-digit growth in net profit alongside record half-year sales, supported by robust demand in the Israeli market and one-time customs refunds from US authorities.

Revenue totaled approximately $110.5 million, compared to $110.6 million in the corresponding quarter. This figure includes a one-time provision of $4.1 million for customer credits in the US. Excluding this provision, sales grew by approximately 3.6%.

Gross profit increased by approximately 7.5% to $36.2 million, representing about 32.8% of revenue. Operating profit rose by approximately 15.5% to $12.5 million, while net profit climbed by 20.9% to reach $11 million, with US customs refunds contributing approximately $2 million to the bottom line. Additionally, EBITDA grew by 12.8% to $16.7 million.

For the first six months of 2026, the group presented record revenue of $222.9 million, marking a 4% increase (or 5.9% excluding the one-time provision) compared to the same period last year. Net profit for the first half increased by 23.8% to approximately $20.2 million.

Gabi Yankovich, CEO of Arad Group, and Hugo Chaupen, Chairman of the Board, stated:

"In the second quarter, strong sales in the Israeli market led the way, as in previous quarters. The global water crisis continues to accelerate the adoption of efficient water management processes aimed at increasing water supply and reducing losses. Our advanced technological solutions support these trends and enable our continued growth."