Israel Aerospace Industries (IAI) reported on Wednesday record-breaking financial results for the third quarter of 2024, as demand for defense technologies surged during the ongoing war in Gaza and Lebanon.
According to the company’s quarterly report, its order backlog reached $25 billion, up from $22 billion in the previous quarter. Net profit rose 60% to $122 million, compared to $74 million in the same period last year, while revenues grew 16% to $1.5 billion.
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Israel Aerospace Industries' Arrow 3 missile defense system
(Photo: Defense Ministry)
The company’s Missile and Space Systems Division led the growth, achieving $1.87 billion in sales during the first nine months of 2024, up from $1.63 billion in the same period last year. IAI’s Arrow missile defense system gained global recognition following its performance during the war. The division has also invested heavily in developing the next generation of the Arrow system, increasing its research and development budget to $81 million in the third quarter, compared to $65 million a year ago.
Overall, IAI’s military division reported a 14% increase in sales for the first nine months of 2024, totaling $3.7 billion. Exports accounted for 62% of third-quarter sales, amounting to $958 million. Domestic sales also grew, comprising 38% of quarterly revenue, up from 31% in the same period last year, driven by increased orders from the Defense Ministry.
“These are the best three years in the history of IAI,” said Board Chairman Amir Peretz, who will step down at the end of the month to be succeeded by former minister Gilad Erdan. “We have achieved unprecedented milestones with groundbreaking projects and innovative systems that serve over 100 countries worldwide.”
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IAI CEO Boaz Levy and Board Chairman Amir Peretz
(Photo: Israel Aerospace Industries)
In June, IAI’s board approved a $155 million dividend, subject to regulatory approval and resolution of a dispute between Peretz and the Government Companies Authority over the allocation of funds for company infrastructure.
IAI CEO Boaz Levy highlighted international recognition of Israel’s technological leadership despite geopolitical challenges. “Our extensive contracts with international clients reflect trust in our capabilities, even amid boycott efforts,” Levy said.
Addressing a recent French boycott of Israeli companies at two trade shows, Levy dismissed the impact. “Macron’s stance excluded Israeli industry, but it doesn’t affect us,” he said. “We meet clients regardless of French sponsorship, and there are plenty of global exhibitions that welcome us. As our results show, it’s just noise.”
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