Shikun & Binui posted a significant turnaround in its second-quarter results for 2025, reporting a net profit of NIS 133 million, compared to a loss of NIS 133 million in the same quarter last year. The shift was driven primarily by booming overseas operations, particularly in Eastern European real estate, despite ongoing legal tensions with partner Raid Tanos over control of the joint venture in Poland.
The company's European arm, Shikun & Binui Europe (RED), recorded revenues of NIS 624 million, a sharp jump from just NIS 21 million in Q2 2024. The increase was due to the occupancy of 504 apartments in Warsaw, Prague, and Belgrade, compared to just 11 units in the previous year's quarter. Operating profit from these projects reached NIS 263 million, with a robust 42% margin on apartment sales, highlighting the profitability that is at the heart of the conflict with Tanos, who owns 25% of the venture.
Infrastructure Abroad Boosts Bottom Line
Other strong contributors included:
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U.S. infrastructure contracting through subsidiary Fay, with a 36% revenue increase to NIS 507 million, driven by bridge and rainwater projects in Pennsylvania and North Dakota.
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SBI (international contracting) returned to profitability with NIS 22 million in operating profit, compared to a loss of NIS 331 million a year ago, following resumed operations at Uganda's airport and debt recovery in Nigeria and Guatemala.
The company also expects to sell its RCC subsidiary in Nigeria by year-end, streamlining its overseas portfolio.
Local Real Estate Slumps; Energy Suffers
The Israeli market presented challenges:
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Shikun & Binui Real Estate revenues plummeted 59% to NIS 218 million due to weak apartment sales.
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The local real estate development segment swung to a NIS 96 million loss, driven by reduced sales and a NIS 90 million provision for rental projects in Ben Shemen and Sde Dov, caused by high-interest costs on a NIS 2 billion land acquisition loan.
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Energy operations, via Shikun & Binui Energy, posted a loss of NIS 71 million following the shutdown of key power plants during the Iran war and reduced tariffs in electricity tenders.
U.S. Contracting Underperforms
Despite revenue growth, U.S. infrastructure profits fell 65% to just NIS 5 million, raising concerns about profitability in a sector seen as a key growth driver.
Financial Position Strengthens
Thanks to the sale of 50% stakes in defense project franchise companies, including Kiryat Hatikshuv and Kiryat Hamodiin, the company reduced its net financial debt to NIS 10.9 billion. The sale, which removed these companies from the balance sheet, shaved NIS 2 billion off total debt.
While Shikun & Binui faces operational challenges in Israel, the company’s global diversification — especially in real estate and infrastructure — continues to bear fruit. The legal battle over control in Poland may yet intensify, but for now, it's clear: disputes haven’t derailed performance abroad.
