Israel Shipyards Industries Reports 43% Increase in Q1 Revenues

Israel Shipyards Industries reported its Q1 2025 results, with revenues growing by approximately 43% to about 385.1 million shekels, compared to about 269.6 million shekels in the same quarter last year. The growth is primarily due to significant improvements in the construction materials and port sectors compared to the same period, which was characterized by a slowdown due to the outbreak of war.

In the construction materials sector, under the management of Cement CEO, Eyal Hacht, revenues in the quarter grew by about 65% to about 262.1 million shekels compared to about 158.9 million shekels in the same quarter last year. The sector's profits climbed to about 101% to about 22.2 million shekels (8% of revenues), compared to about 11 million shekels (about 7% of revenues) in the same quarter in 2024.

In the port sector, revenues in the quarter grew by about 47% to about 43.8 million shekels, compared to about 29.8 million shekels in the same quarter last year. The same quarter last year was characterized by a significant slowdown as a result of the outbreak of war, and since then there has been a gradual return to full activity. The sector's profit in the quarter doubled to about 8.1 million shekels (18% of revenues), compared to about 3.9 million shekels (13% of revenues) in the same quarter in 2024.

In the shipyard sector, under the management of the shipyard CEO, Eitan Zucker, revenues in the quarter amounted to about 54.4 million shekels, compared to about 60.2 million shekels in the same quarter last year. The sector's profits amounted to about 2.2 million shekels (4% of revenues), compared to about 7.9 million shekels (13% of revenues) in the same quarter last year. The change is due to the completion of projects, while the 2.4 billion shekel Reshef ship project signed at the end of 2024 with the Ministry of Defense, has not yet had a significant impact during the quarter reporting period. The order backlog in the shipyard sector stands at about 2.5 billion shekels at the time of the report's publication, compared to an order backlog of about 0.27 billion shekels in the same quarter last year.

In the maritime transport sector, under the management of the CEO of maritime transport, Tamir Ben Lish, revenues in the quarter grew by about 49% to about 26.4 million shekels, compared to about 17.7 million shekels in the same quarter in 2024. The growth is due to the execution of ship charter transactions from third parties, for customers in the port sector, as part of the company's strategy to provide comprehensive services to these customers. The sector's profit in the quarter amounted to about 8.1 million shekels (30% of revenues), compared to about 11.7 million shekels (66% of revenues) in the same quarter in 2024. It should be noted that the profit in the sector in the same quarter last year included a capital gain from the sale of a ship, in the amount of about 7 million shekels.

Zvika Schechterman, CEO of Israel Shipyards Industries: "We are concluding the first quarter of 2025 with a noticeable improvement in results compared to the same quarter in 2024, which was significantly affected by the outbreak of Iron Swords War. In accordance with our business strategy, we continue to work to lay the foundation for the next leap in the company's activity. In recent months, with the receipt of the order for about 2.4 billion shekels from the Ministry of Defense for 5 advanced 'Reshef' type ships, the company began executing the project according to the work plan, as we expect it to begin to be reflected in the financial results later this year. At the same time, we are in advanced stages of the largest infrastructure project in the group, the construction of the silos, which is expected to be the most innovative and efficient in Israel. The project will allow the port to expand its areas of activity also to the unloading of grains and grain products using innovative automation.

"During the reporting period, for the first time we carried out cargo movement by means of the railway line, which was connected to the port at the beginning of 2025, which is also a real good news for our customers, maximizing our value chain and significantly upgrading the cargo transport processes from the port to the customer's door, while reducing congestion, increasing safety and reducing air pollution. And we are already reaping the first fruits of this activity, with improved efficiency against our existing customers and potential for expanding our customer base.

"In the field of construction materials, we continue the growth strategy in the market share through the promotion of the private brand 'CIMENT'. The growth in revenues of the activity sector in the last 3 quarters reflects an annual sales rate of 1 billion shekels.

"The company continues to implement the strategy of increasing the activity of the maritime transport sector and in April 2025 we purchased an additional cargo ship with a carrying capacity of about 39,000 tons in exchange for a total of 15.1 million dollars.

"In April 2025, the company established Ironos Systems, a dedicated subsidiary that will engage in the development, planning, production and marketing of solutions in the field of missile defense. We continue to work all the time to enhance and expand the various activities of the group, with a long-term vision and focus on growth and profitability."

The reports show that the company's gross profit in the first quarter of 2025 rose by about 23% to about 43 million shekels, compared to about 34.9 million shekels in the same quarter last year. The company's operating profit in the quarter rose by about 25% to about 16.8 million shekels, compared to about 13.4 million shekels in the same quarter last year. The growth is due to the growth in gross profit, in conjunction with a decrease in other revenues, net resulting from higher capital gains recorded in the same quarter last year from the sale of ships.

The EBITDA in the first quarter rose by about 16% to about 42.2 million shekels, compared to about 36.3 million shekels in the same quarter in 2024.

The company recorded in the first quarter of 2025 a growth in net profit attributable to shareholders to about 11.7 million shekels, compared to about 11.2 million shekels in the same quarter in 2024. It should be noted that in the same quarter last year the company recorded other net revenues of about 7.3 million shekels resulting from a capital gain from the sale of a cargo ship, compared to other net revenues of about 2.7 million shekels in the first quarter of 2025. In neutralizing the impact of other revenues as stated, the adjusted profit in the first quarter of 2025 grew by about 4 million shekels compared to the first quarter of 2024.