Israel Aerospace Industries once again reported a new record in profits in the second quarter, as the Gaza war and global unrest continue.
IAI profits in the year's second quarter increased by about 115% to about $159 million compared to about $74 million dollars in the corresponding quarter last year, and about 135 million shekels ($36.4 million) in the first quarter of 2024.
An increase of about 13% was recorded in sales amounting to $1.4 billion dollars, compared to about $1.3 billion in the same quarter last year. The backlog of orders in the second quarter is also at an all-time high again and stands at $22 billion.
The operating profit in the second quarter of 2024 increased to about $163 million, which is about 11% of sales, compared to an operating profit of about $88 million in the corresponding quarter last year, or about 7% of sales. The gross profit also increased in the second quarter, to about $281 million, which is about 20% of sales, compared to about $215 million, which is about 17% of sales, in the same quarter last year.
Broken down by sector, the military divisions sold $1.6 billion compared to $1.079 billion in the same quarter last year – an 11% increase. The Missiles and Space Division, which produces the Arrow missile defense system, which entered into operational activity for the first time in the Gaza war, has the highest sales at $614 million, more than sales for ELTA Systems, and IAI subsidiary that manufactures radars, and more than the Aviation Division, which deals with the production of executive planes and aircraft conversion.
Exports abroad in the second quarter amounted to 69% of all sales equaling $973 million, an increase of 27% compared to the corresponding quarter last year. Total sales to the IDF in the second quarter amounted to $447 million and constitute about 32% of all sales. Most of the sales in Israel are made from the missile and space division.
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IAI produces the Arrow anti-ballistic missile defense system
(Photo: Spokesperson and Public Relations Division, Ministry of Defense)
It was the best half-year showing for IAI ever, which ended with a net profit of $294 million compared to $165 million in the corresponding half - an increase of 78%. Mid-term sales totaled $2.8 billion - a 12% increase.
The credit rating company Ma'alot S&P affirmed IAI's local credit rating to the maximum rating of AAA and the company's international rating of A, both with a stable outlook.
"The business results of IAI are a reason for pride for all Israeli citizens," IAI Chairman Amir Peretz said. "We religiously fulfill our national mission for the security of the country, and at the same time make sure that the continuity of the business will not be damaged and the activity with our customers will be preserved and strengthen Israel's position in the world. The numbers emerging from the midterm reports tell an Israeli story of uncompromising excellence that leads about 150 countries in the world to choose IAI's systems."
IAI CEO Boaz Levy said that: "The company's financial results have been on a constant rise in recent years and they reflect the significant and wide-ranging actions both with the Israeli security system and with our customers abroad, as is also reflected in the signing of large-scale contracts, which increase significantly the company's order backlog. IAI sees supreme value in maintaining the technological leadership of the State of Israel, and in view of this necessity we have increased the investment in research and development of advanced technologies that meet the demands of the soldiers in the field and the development of the company's products since the outbreak of the war. The company's systems played a significant part in the operational activity in all the areas: in the air, at sea, on land and in space."