Lesico (LSCO) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue fell 11.8% YoY to ₪388.9m, while gross profit rose to ₪32.3m from ₪9.4m and net income reached ₪11.0m versus a ₪10.7m loss.

• All sites remained operational, but security-related disruptions slowed several projects; the US maintenance business was classified as discontinued and held for sale.

Financial highlights

• H1 revenue was ₪388.9m versus ₪441.1m YoY; gross profit was ₪32.3m versus ₪9.4m, with the increase reflecting an approved additional project revenue recognition and prior-period losses.

• H1 net income was ₪11.0m, including ₪8.3m from continuing operations and ₪2.7m from discontinued operations; EPS was ₪0.16.

• Continuing-operations EBITDA was ₪6.9m; discontinued-operations EBITDA was a ₪0.6m loss, for total EBITDA of ₪6.3m.

• Operating cash flow used ₪105.2m in H1; cash and equivalents were ₪64.4m at June 30, down from ₪147.9m at year-end 2025.

Outlook and guidance

• Backlog totaled ₪1.569bn at June 30, including ₪46m from the US activity classified as discontinued; timing and execution remain subject to project schedules, funding and client changes.

• The Emek Hefer substation project is expected to generate ₪95m over ~20 months; a Belgium contract is estimated at €15m over ~3 years.

• A power-station civil works contract signed in August is estimated at ₪70m for its initial phase, with ~15 months of work beginning in Q3 2026.

• Current inflation and interest-rate trends were assessed as not materially affecting H1 results; a possible further rate rise or domestic slowdown could adversely affect activity and project demand.