Generation Ends 2025 on a Record Note: Assets Surpass NIS 5 Billion, Quarterly Dividend Raised to NIS 25 Million

Generation Capital reported its 2025 results, delivering strong growth across all key metrics. Total assets under management (AUM) surpassed the NIS 5 billion mark for the first time, primarily driven by the completion of large-scale projects and meaningful value creation across the portfolio. Revenues increased to approximately NIS 824 million (vs. ~NIS 244 million in 2024), while pre-tax profit reached approximately NIS 686 million (up ~550% from NIS 103 million). Pre-tax ROE stood at approximately 28%, and consolidated EBITDA totaled approximately NIS 1.3 billion. FFO per share amounted to approximately NIS 0.58, and cash flow from portfolio companies increased to approximately NIS 230 million—roughly double the prior year—driven by the ramp-up and maturation of previously initiated projects.

The fund updated its outlook with a positive trajectory, projecting approximately NIS 250 million in cash flow for 2026 and an annual average of at least NIS 300 million over the next five years, supported by a substantial project pipeline currently under development. Investment value increased by approximately 20% to ~NIS 5.1 billion, reflecting an annual return of ~20% in 2025.

Dividend Update: NIS 25 Million Quarterly Dividend; Potential Special Dividend

In light of the strong performance, the fund increased its quarterly dividend to NIS 25 million (having distributed NIS 65 million in dividends  during 2025). In addition, the fund is evaluating a potential special dividend following the divestment of its stake in Porterbrook (a UK rolling stock leasing company) for approximately NIS 500 million, enabling greater focus on domestic operations and core investment areas.

The annual report also includes an updated valuation of PowerGen (the energy platform), whose value increased to approximately NIS 2 billion, with further upside potential in line with development progress and grid connection milestones.

Erez Balasha, CEO of Generation Capital, commented:
“The fund’s strong 2025 results reflect the broad maturation of the strategic foundations we have built over the years, with performance materially exceeding our forecasts. The increase in investment value reflects portfolio-wide value creation. Accordingly, we are once again revising upward our long-term cash flow projections, supported by the strong performance of our investments and continued asset enhancement.

Significant value creation potential remains not yet fully reflected in current valuations and cash flow projections. We maintain a robust pipeline of infrastructure and energy projects, alongside best-in-class capabilities in development, construction, and operations. This combination provides a solid foundation for continued growth and attractive returns, in line with the fund’s strategy, particularly given the expected increase in infrastructure and energy investments in Israel over the coming decade.”

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Portfolio Highlights

BlueGen – Reported revenues of approximately NIS 1.8 billion (+21%), EBITDA of NIS 414 million, and FFO of NIS 335 million. The company established a dedicated waste management platform (70%), into which Leumi Partners invested NIS 170 million (implying a valuation of NIS 1.1 billion).

In early 2026, BlueGen was awarded a PPP tender for the development of a 50MW waste-to-energy facility in Neot Hovav. The desalination plants in Palmachim and Ashdod returned to full operations, with an extension of the Ashdod concession and improved cost efficiencies. The EPC division backlog stands at approximately NIS 1.7 billion.

Bon Tour – Reported 19% growth in transportation services activity, with revenues expected to reach NIS 600 million in 2026. Bon Tour and Metropoline generated combined revenues of approximately NIS 2.3 billion (+21%), EBITDA of NIS 385 million, and FFO of NIS 305 million. Transportation services activity grew by 19% while maintaining strong margins. In public transportation, the companies recorded increased mileage, reduced penalties, and improved profitability.

PowerGen – Reported revenues of approximately NIS 1.7 billion, EBITDA of NIS 356 million, and FFO of NIS 205 million. The investment value increased to approximately NIS 2 billion, driven by generation and energy storage initiatives. The platform operates six power plants with ~95% availability. The Reindeer power plant is approaching financial close, while the Alon Tavor power plant is fully operational.

Porterbrook & Fridenson Generation – The fund completed the divestment of its 10% stake in Porterbrook for approximately NIS 500 million. Fridenson Generation delivered record results, with revenues of NIS 86 million (+26%), expected to exceed NIS 100 million in 2026, and EBITDA of NIS 50 million following the completion of logistics centers in Ashdod and Haifa.

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