The Mif'at contract turns Aran's waste sorting into backlog to be tested in margin and collection
The binding EUR 11.1 million agreement with Mif'at, together with a prior EUR 5.2 million project and negotiations for roughly EUR 7 million, turns Aran's environmental activity into material execution backlog. The next reports will need to show how that backlog becomes revenue, gross margin and collection while guarantees remain controlled.
Aran's binding contract with Mif'at turns waste sorting from a small niche into material execution backlog that will be tested in the 2026 and 2027 reports. The order, worth EUR 11.1 million, is much larger than the EUR 5.2 million project signed in December 2025, and it sits next to negotiations for an additional packaging-sorting project of roughly EUR 7 million. In the 2025 annual report, Aran disclosed only about NIS 18 million of cumulative sales to the recycling and waste-sorting industry since entering the field and a backlog of about NIS 25 million. The new contract therefore changes the scale of the activity and brings in a meaningful operating customer: Mif'at, presented by Lahav as a waste platform that generated NIS 494.5 million of revenue and NIS 74.1 million of EBITDA in 2025. The focus now moves from order headlines to project accounting. The next reports will need to show how project milestones, overseas equipment procurement and customer-site installation become revenue, gross margin, collection and controlled guarantees.
The Contract Changes The Size Of The Waste Activity
Aran reported that on July 7, 2026 it signed an agreement with Mif'at, a private waste collection and treatment company controlled by Lahav, for the planning and construction of a municipal solid waste sorting plant in central Israel. Total consideration was set at EUR 11.1 million, with payment to be made in several installments according to project milestones. Work is expected to start in July 2026 and the expected execution period is about 15 months.
The important number is not only the new contract size, but the sequence now forming around it. In the 2025 annual report, Aran wrote that since the end of 2022, when it entered recycling and waste sorting, consolidated sales to the industry totaled about NIS 18 million, and backlog in the field at the report date was about NIS 25 million. That backlog included a December 2025 project of about EUR 5.2 million for the planning and construction of a municipal waste-sorting facility.
Aran now has two signed projects in the same activity, totaling EUR 16.3 million, alongside additional negotiations for planning, equipment supply and supervision of a packaging-sorting plant at an estimated EUR 7 million. If those negotiations become a binding agreement, construction of the additional project is expected to start in the third quarter of 2026 and end during 2027. According to Aran's filing, the three projects are expected to be completed during 2027.
| Project | Status | Size | Reported execution window | What The Reports Need To Show |
|---|---|---|---|---|
| Municipal waste-sorting plant from December 2025 | Signed agreement | About EUR 5.2 million | Expected completion during 2027 | Revenue recognition pace, margin and collection |
| Municipal waste-sorting plant for Mif'at | Signed agreement | EUR 11.1 million | About 15 months from July 2026 | Milestones, equipment procurement, installation at the customer site |
| Packaging-sorting plant | Negotiation | About EUR 7 million | Possible third-quarter start, completion in 2027 | Binding signature and payment terms |
Mif'at Makes The Customer Part Of The Read
Mif'at is not an anonymous customer in this project. Lahav indirectly holds about 65% of it through Lahav Infrastructure and presents Mif'at as a waste collection and treatment activity with a central transfer station in the Sharon area. Lahav's capital-markets presentation showed Mif'at with NIS 494.5 million of 2025 revenue, NIS 74.1 million of EBITDA and NIS 37.1 million of net profit, all on a 100% company basis. The same presentation also showed a clear operational gap: activity of about 1,500 tons per day versus capacity of 3,000 tons per day after upgrade.
That context sharpens the meaning of Aran's order. On the customer side, Mif'at is not only buying equipment. It is a waste platform trying to expand capacity and activity. In January 2026, a non-binding memorandum of understanding was signed for a possible investment by Mizrahi Tefahot Invest in Mif'at, at a valuation of NIS 560 million pre-money and NIS 658.8 million post-money, with a possible investment of about NIS 98.8 million for 15%. The negotiation deadline has been extended several times, most recently at the end of June to July 15, 2026.
This does not prove the investment will close, and it is not binding financing for Aran's project. It does explain why a sorting-plant contract at Mif'at is linked to Lahav's platform read: Mif'at is simultaneously working on investor entry, capacity expansion and broader waste activity. Another customer-side event keeps the regulatory risk visible: in April 2026 Lahav reported that the Competition Authority objected to the acquisition of Sitheal Hagal and Talia waste-landfill activity, and Mif'at said it disagrees with the decision and intends to appeal it.
The Contract Will Meet The Reports Through Margin, Collection And Guarantees
Aran does not describe the project as simple contracting work. According to the filing, the group represents in Israel several companies that specialize in planning these plants and supplying detector and sorting technologies. Under the agreement, those companies and Aran Models will provide planning, logistics, equipment, assembly and construction at the customer site. This structure can create meaningful revenue, but it also puts Aran against procurement timing, overseas supply, installation at a site it does not own, guarantees, project changes and customer-facing responsibility.
The relevant profitability point was already visible in the 2025 report. Aran's equipment and raw-materials segment, which includes recycling and waste-sorting equipment and the planning of production lines and plants, grew revenue from NIS 111.5 million in 2024 to NIS 138.9 million in 2025. Segment gross profit barely changed, at NIS 26.4 million in both years, and the gross margin declined from 23.7% to 19.0%. Segment profit before tax stayed around NIS 10.2 million.
This is where the announcement turns from a backlog read into an execution read. Milestone payments can align collection with project progress, but the filing does not detail the payment schedule against equipment orders, assembly and delivery. The agreement also includes cancellation provisions, agreed compensation for delay or deferral caused by the customer, indemnity, responsibility, guarantees and project changes. The next reports therefore need to show not only project revenue, but also gross margin, customer balances and advances, guarantee exposure and progress against the timetable.
Conclusions
The Mif'at contract is material for Aran because it changes the size of the waste-sorting activity and puts the company in front of a customer with existing waste operations and a capacity-expansion plan. The binding EUR 11.1 million agreement, together with the prior EUR 5.2 million project, already creates an execution sequence far larger than the activity shown in the 2025 report. The packaging-sorting negotiation can extend that sequence, but at this stage it is still not a signed contract.
The next read should come from the reports, not from the order headline. Aran needs to show milestones that become revenue, gross margin that does not get absorbed by procurement and installation work, collection that matches the timing of expenses, and guarantee exposure that stays under control. On the customer side, Mif'at needs to keep moving as a waste activity with capacity and funding, without regulatory or site delays shifting risk back to Aran. Aran's valuation is not the decisive point here: without disclosure on margin, collection and backlog after the contract, it is not possible to conclude that the market already has a recurring and profitable environmental activity in hand. For now, the filing proves execution backlog. 2026 and 2027 need to show whether that backlog becomes earnings and cash flow.
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