Paz Group reports sharp profit growth and announces hundreds of millions in dividends
Despite the ongoing impact of the Iron Swords war, the fuel and retail giant has delivered strong second-quarter 2026 results, advancing toward the strategic goals set by CEO Nir Stern.
Paz Group reported its financial results for the second quarter of 2026 this Monday, posting a net profit of 158 million shekels. Following these results, the company announced a cash dividend distribution of 130 million shekels. Total net profit for the first half of the year reached 321 million shekels, with total dividends distributed amounting to 260 million shekels.
Key Financial Highlights
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Net Profit: A 14% increase, totaling 158 million shekels compared to 139 million shekels in the same period last year.
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Gross Profit: A 4.6% increase to 677 million shekels, with a gross margin of 24%.
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EBITDA: A 3.5% increase to 354 million shekels.
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Operating Profit: A 3% increase to 216 million shekels.
Operational Segments
Transportation Energy: Total sales for this segment rose by 21.9% to 2 billion shekels, up from 1.649 billion shekels last year. Gross profit increased by 13.9% to 311 million shekels, while EBITDA grew by 16.1% to 137 million shekels.
Food Retail: Results were impacted by the timing of the Passover holiday, the Iron Swords war, and the number of working days. Operating profit stood at 76 million shekels (a 4% decrease), with an operating margin of 9.3%. Total segment sales reached 822 million shekels.
Gas and Renewable Energy: This segment faced challenges due to the war and rising gas prices. While sales grew by 17.1% to 267 million shekels, EBITDA declined by 20.5% to 35 million shekels.
Real Estate: EBITDA for the segment rose by 2% to 51 million shekels (excluding one-time gains from the previous year). Free cash flow stood at 170 million shekels.
CEO Nir Stern stated: "Paz is reporting another excellent quarter. These results reflect the momentum of our operations and improved business performance during a challenging period as the impact of the war on our operating segments continues."
He added: "Simultaneously, the company is aggressively implementing the '800 Plan,' which targets an annual profit of 800 million shekels within three years. In light of these strong results, the board of directors has decided to distribute a dividend of 130 million shekels."
