After the stock crash: tourism giant Issta sees 315% profit jump
Despite the turmoil experienced by Issta's stock over the last half year, the company's reports for the second quarter of 2026 show strong results alongside a new record in equity.
Issta, the Israeli tourism company, has published its financial results for the second quarter and the first half of 2026. According to the data, total revenue in the second quarter of 2026 rose by approximately 9% to about 122.4 million shekels, compared to 111.9 million shekels in the same period last year. Of this, about 19.4 million shekels were derived from rental income and other sources.
Total company revenue for the first half of 2026 amounted to about 196 million shekels, compared to 206 million shekels in the same period last year—a decrease of only about 5%, despite the impact of the "Lion's Roar" operation.
Of these revenues, approximately 157.5 million shekels came from the tourism sector, while 38.4 million shekels were generated from rental income. Gross profit for the second quarter of 2026 reached 56.9 million shekels, compared to 54.8 million shekels in the same quarter last year.
Operating profit for the second quarter of 2026 rose by about 139% to approximately 45.2 million shekels. This increase is primarily attributed to the revaluation of investment real estate, totaling about 33.3 million shekels, mainly regarding the Timorim V logistics complex following new lease agreements and the completion of construction.
Operating profit for the first half of 2026 stood at about 67.1 million shekels, an increase of 149%. During the first half of the year, the company recorded other income of about 15 million shekels, largely due to additional consideration from the sale of the Publica hotel and war-related grants. Net profit for the second quarter of 2026 surged by 315% to about 35 million shekels. Equity as of June 30, 2026, reached a record 1.7 billion shekels, with an equity-to-balance ratio of approximately 36%.
Issta remains active in the real estate sector, including logistics centers, residential development, and hotel assets. In the residential sector, the company is planning approximately 3,800 housing units, of which 2,500 are intended for government programs, 780 for the free market, and 960 within urban renewal frameworks. The company currently has 8 projects under construction.
It should be noted that while the company's stock on the Tel Aviv Stock Exchange rose by 2.53% over the past month, it has fallen by 14.58% over the last three months. Over the past half year, the company has faced significant market turmoil, with the stock plunging by 16.42%.
