CAF confirms impact of Middle East conflict on industrial operations in Israel
El Salto
- CAF (Construcciones y Auxiliar de Ferrocarriles) has confirmed in its 2026 first-half financial report that it continues to fulfill rail and infrastructure contracts in Israel.
- The company has explicitly acknowledged the Israeli-Palestinian conflict as a source of operational uncertainty and logistical challenges in its disclosures to financial regulators.
Project Status
- Tel Aviv light rail: 29 new trams were manufactured in H1 2026, totaling 45 units delivered out of a 98-vehicle contract.
- Jerusalem light rail: 2 additional trams were produced in H1, bringing the total to 112 out of 114 units. The line continues to operate "normally."
- Since 2019, CAF has partnered with the Israeli firm Shapir to operate and maintain the Jerusalem light rail, which connects illegal Israeli settlements with West Jerusalem.
Financial Performance and Risks
- The company reported H1 revenue of €2.527 billion (a 16% increase) and net profit of €99 million (a 36% increase year-over-year).
- Growth was driven primarily by the electric bus subsidiary, Solaris, and its European market deliveries.
- Despite strong overall performance and a global order book of €17.743 billion, management has formally categorized the regional geopolitical situation as a key vulnerability for investors, contrasting with the ethical standards highlighted in the company's sustainability reports.