Yitzhak Tshuva celebrates: Delek Group's profit soared to 314 million shekels for the quarter

Delek Group, controlled by tycoon Yitzhak Tshuva, published its results for the second quarter of 2026, marking one of its strongest quarters in recent years.

Net profit attributable to shareholders soared by about 78% and totaled about 314 million shekels, compared to about 176 million shekels in the same quarter last year. Revenues rose by about 26% to about 4.4 billion shekels, and the board approved a dividend distribution of 250 million shekels. For those holding the stock, directly or through a pension fund that tracks the TA-35 index, this is significant news.

The increase is evident across all lines of the report. Operating profit for the quarter rose by about 38% to about 1.56 billion shekels, and in the first half of the year, revenues totaled about 9.1 billion shekels, a growth of about 24%.

The beating heart of the profit is the energy activity. Ithaca, the group's production arm in the North Sea, increased daily production by about 9% and announced a dividend of 255 million dollars to be paid in September, with Delek's share being about 386 million shekels.

Ithaca also raised its annual dividend forecast to a range of 500 to 530 million dollars. At the same time, production from the Leviathan reservoir jumped by about 35% to about 2.7 BCM, following the completion of the third pipeline that increased production capacity. A significant portion of the gas, about 1.7 BCM, is exported to Egypt, which positions Delek as a central player on the regional energy map.

The interesting story of the quarter is that Delek is no longer just a gas and oil company. Isracard, which has been consolidated in the group's reports since the third quarter of 2025, recorded a net profit of about 80 million shekels and a credit portfolio that crossed the 13 billion shekel threshold for the first time.

The central engine is the agreement with El Al, under which the number of FLY CARD cards crossed a quarter of a million. According to Isracard's estimate, the agreement is expected to add between 1.2 and 1.6 billion shekels to its pre-tax profit over its lifetime.

The figure that stands out to investors is the dividend yield. Over the past year, the group distributed a yield of about 14.5% to its shareholders, among the highest in the TA-35 index. It is important to qualify: the figure includes both share buybacks and the distribution of Delek Yezum shares as a dividend in kind, not just cash.

In addition, most of the profit relies on oil and gas prices, which are inherently volatile, so an especially high yield also reflects the risk that the market is pricing in. Still, for an Israeli saver who holds the index through a pension fund, such a quarter for Delek Group is recorded on the positive side of the portfolio.

Idan Wallace, CEO of Delek Group, stated: "Delek Group concludes the second quarter of 2026 with strong results that reflect the quality of our asset portfolio and the continued consistent implementation of the group's strategy. Net profit for the quarter soared by about 78%, revenues grew by about 26%, and the group's main activity engines continue to generate significant cash flows in accordance with work plans. In energy activity, Ithaca continues to show strong operational performance, with growth in production and EBITDAX and an additional dividend of 255 million dollars.

In Leviathan, a significant increase in production and sales was recorded, and at the same time, infrastructure projects were completed that allow for increased production and export.

Alongside the energy activity, Isracard continues to establish its strategic plan with an increase in revenues and net profit, and a record pace of issuing non-bank cards, which as of the date of the report publication stood at a volume of about 2.1 million cards, an increase of about 200 thousand cards compared to the previous quarter, with most of the growth stemming from FLY CARD cards. At the same time, we completed two significant strategic moves that included the listing of Delek Yezum for trading and the split of the group's capital in a 1:10 ratio, with the aim of unlocking value for shareholders and increasing the liquidity of the group's stock. We continue to work to strengthen and improve the group's excellent core assets, alongside the development of new synergistic growth engines, performing significant moves that will continue the positive momentum and bring to expression the great potential of the group".