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Israel Railways published its 2025 financial results yesterday (Wednesday), indicating mixed trends: operational improvement and a sharp rise in demand for passenger and freight services, alongside an erosion in overall profitability compared to the previous year.
Financial Resilience: AAA Rating and Stable Outlook
One of the railway's significant achievements in the past year is the upgrade of the company's and its bonds' credit rating by the rating agencies "Maalot" (S&P Global) and "Midroog" (Moody's) from AA+ to the maximum level of AAA. Maalot also raised the rating outlook to "Stable," in light of massive investments in railway infrastructure and the strengthening of the company's financial resilience.
Financial Data: Increase in Revenue, Decrease in Profit
Total Revenue: Grew to 3,653 million NIS (compared to 3,479 million NIS in 2024).
Total Profit: Stood at 41 million NIS (compared to 79 million NIS in 2024).
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Amounted to 54 million NIS, a decrease compared to 108 million NIS in the previous year.
Passenger Sector: Nearly 72 Million Trips per Year
The year 2025 was characterized by a significant increase in ridership, influenced among other things by the events of Operation "Am Lavi." During the year, 71.8 million trips were made, a jump compared to 65.4 million in 2024. The daily average of trips stood at 279,000.
In terms of punctuality, the railway recorded a figure of 94% (excluding the security impacts of "Red Color" sirens), a slight decrease compared to the 96.8% recorded in 2024. Without the adjustment, the annual punctuality stood at 92.5%.
Freight Sector: Growth in Transport Volumes
Israel Railways continues its efforts to shift cargo from road to rail, enhancing supply chain resilience. In 2025, 6.6 million tons of cargo were transported (compared to 6.1 million in 2024), against the backdrop of completing the connection of all five Mediterranean ports to the national rail network.
Despite the increase in revenue from freight transport (175 million NIS), the sector recorded a loss of approximately 63 million NIS, a significant increase compared to a loss of 23 million NIS in 2024. The railway notes that the deployment of additional freight terminals is expected to increase activity volumes in the future.
The reports reflect Israel Railways' transition from a company focused on operations to a company managing massive national logistics infrastructure projects. The upgrade to a AAA rating is an important vote of confidence from the market, despite the decrease in net profit, which is likely affected by high financing and operating expenses and the complex security situation.
