Since the beginning of the year, Israel’s national water company Mekorot has invested about NIS 1.3 billion in constructing and upgrading water facilities. The three-year development plan for 2026–2028 is currently under review, with an average planned annual investment of about NIS 1.6 billion.
Mekorot CEO Amit Lang stated: “As a global leader in its field, Mekorot continues to demonstrate improvement and growth across all parameters, alongside massive ongoing investment in water infrastructure and leading technologies. The drought will require increased investment in the water sector in order to preserve Israel's qualitative advantage.”
Mekorot, reported its financial results for the third quarter of 2025, showing revenue growth, an increase in EBITDA, and higher profits when excluding one-time effects.
Key Results for the First Nine Months of 2025
Net profit for the first nine months of 2025 increased by about 39%, reaching approximately NIS 232 million, compared to about NIS 166 million in the same period last year. The increase in profit stemmed in part from higher returns on equity and lower net financing expenses.
EBITDA for the first nine months of 2025 rose by about 17% to roughly NIS 1.16 billion, compared to NIS 993 million in the corresponding period last year.
Revenue for the first nine months of 2025 grew by about 3%, reaching approximately NIS 4.17 billion, compared to NIS 4.04 billion in the same period last year. Revenue growth resulted from increased water sales to consumers and higher income from contractor work for external entities, partially offset by a decline in revenue from private water producers.
Adjusted net profit—excluding one-time effects (known index and compensation index impact, last year’s insurance reimbursement for the Ashdod desalination plant, and last year’s impairment at the Larnaca company)—rose by about 47% to approximately NIS 245 million, compared to about NIS 167 million in the same period last year.
Between January and September 2025, Mekorot supplied approximately 1.46 billion cubic meters of water, including about 151.6 million cubic meters supplied to Jordan and the Palestinian Authority—an increase of about 2.9% compared to the first three quarters of 2024. The rise in water volume mainly reflects higher agricultural consumption and increased household irrigation needs due to a very dry winter compared to last year.
During the first nine months of 2025, the company invested approximately NIS 1.33 billion in the construction and renewal of water facilities. The Water Authority Council is currently reviewing the approval of the 2026–2028 three-year development plan, which proposes an average annual investment of about NIS 1.6 billion, compared to an average annual investment of NIS 1.5 billion in the development plan for 2023–2025 that has just concluded.
Written in collaboration with Mekorot