Lesico (LSCO) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ₪464.5M, a slight decrease of 0.5% year-over-year, mainly due to the impact of military operations in Israel and a shift to recognizing revenue based on actual collections in a key overseas project.

• Net loss for H1 2025 was ₪14.2M, compared to a net profit of ₪4.0M in H1 2024, reflecting operational disruptions and increased project costs.

• EBITDA for H1 2025 was negative at ₪5.5M, down from a positive ₪16.2M in H1 2024.

• The company maintains a strong liquidity position with cash and equivalents of ₪103.4M as of June 30, 2025.

Financial highlights

• Gross profit for H1 2025 was ₪31.9M (gross margin 6.8%), down from ₪77.1M (16.1%) in H1 2024, mainly due to increased costs and project delays.

• Operating loss before other income/expenses was ₪14.2M in H1 2025, compared to an operating profit of ₪28.8M in H1 2024.

• Net cash used in operating activities was ₪55.4M in H1 2025, compared to net cash provided of ₪29.8M in H1 2024.

• Equity attributable to shareholders was ₪224.0M as of June 30, 2025.

Outlook and guidance

• The company is actively pursuing compensation for project delays and cost overruns due to military operations, but no compensation has been recognized yet.

• Management expects continued demand for infrastructure projects in Israel, supported by government spending on reconstruction.

• Strategic review underway to focus on the most profitable business segments for the next five years.