Paz increases quarterly profit by 14% and distributes another 130 million shekels to shareholders

The Paz Group finished the second quarter with a net profit of 158 million shekels, compared to 139 million shekels in the same quarter last year, a growth of 14%. In the first half of the year, net profit totaled 321 million shekels, and excluding real estate revaluations - 304 million shekels, compared to 300 million shekels in the first half of 2025. At the same time, Paz announced a dividend distribution of 130 million shekels for the quarter, meaning that since the beginning of the year it will distribute 260 million shekels to shareholders.

The results come after Paz presented a net profit of 163 million shekels in the first quarter, and simultaneously launched "Plan 800" - the strategic plan under which it aims to reach an annual net profit of 800 million shekels within three years. This is after the company reached its previous target, "Plan 500", two years ahead of schedule, and finished 2025 with a net profit of 578 million shekels.

In the second quarter, Paz recorded a 4.6% increase in gross profit, which totaled 677 million shekels, compared to 647 million shekels in the same quarter. EBITDA, excluding a capital gain of 9 million shekels from the realization of real estate assets recorded in the same period, rose by 3.5% to 354 million shekels, compared to 342 million shekels last year. Operating profit, also excluding that capital gain, rose by 3% and totaled 216 million shekels, compared to 209 million shekels in the same quarter. The group's free cash flow totaled 170 million shekels.

The main improvement in the quarter came from the energy for transportation sector. Sales in the sector jumped by 21.9% and totaled 2 billion shekels, compared to 1.65 billion shekels in the same quarter. Gross profit in the sector rose by 13.9% to 311 million shekels, and EBITDA grew by 16.1% and totaled 137 million shekels, compared to 118 million shekels last year. However, there was a 10% decrease in the amount of fuel sold, mainly due to the war.

The picture in food retail was more mixed. Sales for the quarter fell by 4% and totaled 822 million shekels, compared to 855 million shekels last year, and same-store sales also fell by 4%. Paz explains that the activity was affected, among other things, by the timing of the Passover holiday, the war, and the number of working days in the quarter. Despite the decrease in sales, the operating profit margin in the food sector improved slightly to 9.3%, compared to 9.2% in the same period. Operating profit totaled 76 million shekels, a decrease of 4% compared to 79 million shekels last year, while EBITDA rose by 1% to 131 million shekels. Looking at the first half, the picture in the food sector is more positive: sales rose by 1% and totaled 1.63 billion shekels, operating profit increased by 1% to 138 million shekels, and same-store sales rose by 0.2%.

The gas and renewable energy sector showed an increase in revenue alongside a hit to profitability in the quarter. Sales rose by 17.1% and totaled 267 million shekels, compared to 228 million shekels last year, but EBITDA fell by 20.5% to 35 million shekels. Gross profit fell by 8.7% and totaled 63 million shekels. The company attributes the hit mainly to the effects of the war and the sharp rise in gas prices. Here too, the half-year data shows a better trend: EBITDA in the gas and renewable energy sector rose by 9.7% to 113 million shekels, and gross profit grew by 6.8% to 172 million shekels.

In the real estate sector, EBITDA for the quarter totaled 51 million shekels, an increase of 2% compared to 50 million shekels in the same period, excluding the capital gain recorded last year. Paz shares are reacting to the results with a decline of about half a percent. The company's CEO, Nir Stern, said that Paz is continuing with the plan to reach an annual net profit of 800 million shekels within three years.