Maytronics (TASE: MTRN), the pool cleaning robot company from Kibbutz Yizre'el, has reported another weak quarter, and it reveals in its report that its CEO Sharon Goldenberg will shortly step down "during his fifth term." The actual date is not clear, but Goldenberg took up his post in November 2021, so it should be within the next two months.
In its second quarter 2025 financials, Maytronics continues to report weakness in its business. Revenue was 15% down in comparison with the corresponding quarter of 2024, at NIS 514.8 million, below the guidance the company gave in the previous quarter of NIS 530-600 million.
Strong shekel hits revenue
The company says that the decline in revenue partly stems from a change from marketing via distributors to direct sales to consumers, and that some of its revenue from the North America territory, which accounts for 64% of its total revenue, will be deferred to the third quarter. This is a significant change for the company, since up to now the first half year has been the strongest for its business. Maytronics estimates that about $14 million of its revenue will transition to the third quarter. In its third quarter guidance, the company sees revenue of NIS 320-350 million.
The company also points out that the strengthening of the shekel against the US dollar in the second quarter cut its revenue by some NIS 18 million, leading to an NIS 8 million hit to gross profit and a NIS 3.7 million hit to operating profit.
Net profit down 72%
At the same time, the company’s orders backlog rose by NIS 34 million to NIS 102 million, because of "orders intended for supply in the second quarter were not supplied because of operational challenges in North America." Operating profit continued to decline sharply, sinking by 57% to just NIS 31.2 million, and net profit plummeted by 72% to NIS 12.5 million only.
Besides this, Zriha Hlavin Industries, "one of the company’s suppliers of plastic injections," is suing Maytronics for NIS 90 million damages for breach of commitments to order plastic injection moldings.
On the positive side, Maytronics states that in 2024 it cut costs by 7%, and that it hopes to achieve further cost savings of 5-7%. The cost-cutting measures include "consolidation of production lines," or in other words reduction of its product range, "of 30% to 50% within a period of up to three years," alongside development of new robots to replace older product generations.
Maytronics was at one time one of the companies constituting the flagship index of the Tel Aviv Stock Exchange, the Tel Aviv 35, and had a market cap of NIS 9.1 billion. Since then, it has lost 94% of its value, and it now has a market cap of just NIS 515 million. The value of the 56% stake of the controlling shareholder, Kibbutz Yizre'el has fallen below NIS 300 million, less than NIS 1 million for each kibbutz member, down from NIS 17 million when the share price was at its peak.
Published by Globes, Israel business news - en.globes.co.il - on August 20, 2025.
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