Israel Railways Reports a Profit of 79 Million Shekels for 2024

Israel Railways has released its results for 2024. The results for 2024 indicate a clear trend of strengthening the financial resilience of Israel Railways. The total profit for 2024 stood at 79 million shekels compared to a total loss (after offsetting one-time revenues due to asset depreciation and revenues from previous years) of 49 million shekels in 2023.

Last year, the rating companies 'Maalot' and 'Midroog' upgraded Israel Railways and its bond rating from +AA to AAA. The upgrade is due to a significant improvement in the company's operations and strengthening its financial resilience, in light of the new operation and development agreement with the state, which also strengthens, in their estimation, the connection between the company and the state. This is alongside continued extensive investments in Israel Railways and rail transport.

The Chairman of the Board of Directors of Israel Railways, Attorney Moshe Shmaoni, stated: 'Israel Railways is strengthening its financial resilience in order to bring about a dramatic improvement in the lives of Israeli citizens in the coming years. I thank the Ministry of Transportation, my fellow board members, partners, railway management, the Treasury, and the Companies Authority for their accompaniment and assistance in the development of the railway, and its transformation into a strong and leading company in the landscape of government companies.'

The CEO of Israel Railways, Shiko Zana, said: 'This year, despite the challenges of the war, which included the recruitment of hundreds of railway employees to the reserves, we continued to promote and strengthen Israel Railways in all areas and its financial resilience. This is alongside a constant improvement in passenger service and the promotion of additional aspects such as the cargo sector, technology, infrastructure development, and more. I would like to thank the company's board of directors, railway employees, and the Ministries of Transportation and Finance for their partnership and dedication on the way to making Israel Railways the spearhead of Israel's transportation.'

The company's total revenues in 2024 amounted to 3.479 billion shekels compared to 3.359 billion shekels in 2023. In 2024, the company recorded an EBITDA operating profit of 108 million shekels compared to a total of 84 million shekels in 2023.

In 2024, Israel Railways transported about 6.15 million tons of cargo, compared to 6 million tons in 2023. The volume of transport was affected by the Iron Swords war. The railway is working to increase transport volumes by spreading additional cargo terminals across the country. In addition, all five Mediterranean ports were connected to the national railway network, which was completed during 2024.

The railway's revenues from cargo transport stood at about 162 million shekels in 2024, compared to 149 million shekels in 2023. The loss in the cargo sector in 2024 stood at about 70 million shekels, compared to a loss of 56 million shekels in 2023.

The loss in the cargo sector is attributed, among other things, to a reduction in the number of cargo trains operated, due to a self-initiated traffic stop for infrastructure and development work, and for electrification work on the railway network. In 2020, Israel Railways began implementing the Eastern Railway project, which will serve as a bypass axis for the coastal railways and Ayalon Corridor, and will significantly increase the operational flexibility of Israel Railways and the potential for cargo movement.