65% jump in Avisror sales - but the company lost 13 million shekels

The real estate market is in a challenging period: sales for some companies have decreased, yet the profit in most large companies has not been significantly eroded and has even increased in some cases.

This is evident in the second-quarter results of the Avisror Moshe & Sons company. Its revenues in the first half grew by 65% and totaled about 372.2 million shekels; in the second quarter, there was an increase of about 30% in revenues, totaling about 107 million shekels compared to the corresponding quarter last year. Since the beginning of 2026, the company has sold 205 housing units for a financial volume of about 473 million shekels, of which 113 units were in the second quarter.

In the second quarter of 2026, 113 housing units were sold (company share 109 units) for a financial volume of 201 million shekels (including VAT), of which 79 units were under the "Target Price" program for 104 million shekels (including VAT).

The company has not yet recognized revenues for contracts signed in projects where a building permit has not yet been received, including the "Karmi Gat 1", "Ganei HaBira", and "Garda" projects (totaling 222 housing units, company share 150 units). The company estimates that building permits will be received by the end of 2026. In the field of real estate development, the company is building 2,389 housing units in 12 projects.

Main financial figures for the second quarter

Revenues totaled about 107 million shekels, an increase of about 30% compared to 82.5 million shekels in the corresponding quarter last year. The increase was mainly due to the first recognition of revenues from the "Ashira" project (about 122 million shekels) and the sale of 55 housing units in the Bnei Bank project for about 115 million shekels.

Gross profit in the second quarter totaled about 28.3 million shekels, a decrease of about 16% compared to 33.6 million shekels in the corresponding quarter last year. The gross profit margin in the first half decreased to about 21% compared to 36% in the corresponding period last year, mainly due to a change in the project mix and the start of revenue recognition from the 'Ashira' project.

Operating profit totaled about 44.7 million shekels, compared to 53.8 million shekels in the first half of last year. Net financing expenses in the first half increased to 31.4 million shekels. Net financing expenses in the second quarter totaled about 27 million shekels compared to net financing income of 2.7 million shekels in the corresponding quarter last year. The increase in expenses is attributed to the increase in projects with full building permits and higher interest expenses.

Net profit totaled about 2.7 million shekels in the first half, compared to 39.8 million shekels in the first half of last year. The net loss in the second quarter totaled about 13 million shekels compared to a net profit of 12.2 million shekels in the corresponding quarter last year.

Eli Avisror, Chairman and CEO of the company, stated: "We are proud to report our financial results for the first time as a public company after successfully completing an IPO on the Tel Aviv Stock Exchange and raising about 520 million shekels. We are summarizing the first half and presenting the results of the second quarter of 2026 with a 65% increase in revenue, despite the challenges of the period, including the effects of Operation 'Lion's Roar' and market conditions that do not yet support the return of momentum for purchases in the residential real estate sector in Israel."

"The company has a substantial land bank and a diverse business mix, including income-generating real estate assets and long-term rentals, which give the company an economic horizon, while the residential market in Israel has shown strength over the years, among other things against the backdrop of population growth and limited supply of land."