This is a structural review of a quarterly report filed today. It is not investment advice, a recommendation to act, or investment marketing. Every figure was taken from the structured filing submitted to MAYA (report 1765408, second quarter 2026, in shekels), and the ratios were computed directly from it.
The figures as filed
| Line | Amount | Of revenue |
|---|---|---|
| Revenue | 753.5 ILS million | 100.0% |
| Gross profit | 123.5 ILS million | 16.4% |
| Operating profit | 24.3 ILS million | 3.2% |
| Pre-tax | -1.8 ILS million | -0.2% |
| Net profit | 12.1 ILS million | 1.6% |
A tax line that adds instead of subtracting
In an ordinary report the tax line reduces profit: you earn before tax, you pay tax, and less remains. At Tidhar this quarter the direction is reversed, and that is the striking feature of the report.
The quarter reached the tax line with a loss of ILS 1.8 million, and closed with a net profit of ILS 12.1 million. In other words, the tax line added ILS 13.9 million.
This happens when a tax benefit is recorded - usually the recognition of a deferred tax asset, meaning accumulated losses the company expects to be able to use in the future against profits. This is an accounting recognition, not cash that came in. Cash flow did not change because of it.
The implication for reading: anyone reading only the bottom line sees a profitable quarter. Anyone reading one line above it sees a quarter that closed at a pre-tax loss. Both readings are correct, and they describe entirely different things.
And why the quarter reached a loss in the first place
Operating profit stood at ILS 24.3 million - a margin of 3.2% on revenue of ILS 753.5 million. A thin margin, characteristic of construction execution.
Below the operating line, ILS 26.0 million was absorbed - more than all operating profit, hence the loss. Put differently: the activity produced a profit, and financing swallowed it entirely and then some.
This is the structure that turns a positive operating quarter into a losing one without anything in the activity itself having changed. And on the balance sheet: ILS 11,140.5 million against equity of ILS 4,482.2 million, a ratio of 2.49 to one - relatively low for the industry, but enough for financing to swallow a 3.2% margin.
And the last line
Net profit is ILS 12.1 million, but the amount attributable to shareholders is only ILS 6.4 million - 52.8% of net profit went to non-controlling interests.
So of the last three lines in the report - pre-tax loss, net profit, and profit attributable to shareholders - each tells a different story, and only the third concerns whoever holds the share.
What this report does not say
The structured filing submitted to MAYA does not include the comparable quarter a year earlier, so everything written here is a cross-section of a single quarter - not a trend. From these figures alone it is impossible to say whether an improvement or an erosion continues, and no run-rate can be derived from them. Those answers live only in the full report and its notes.
And a note that applies to every review here: the structure described is neither "good" nor "bad." It is a shape, and a shape behaves differently in every industry. The review describes what is happening - it does not evaluate and does not recommend.
