Israeli defense company Rafael, maker of the Iron Dome air defense system, announced on Thursday a record-breaking order backlog of 60 billion shekels ($15.8 billion), to be fulfilled over the next four years.
The backlog has grown by 7.6 billion shekels ($2 billion) since the start of 2024. Third-quarter orders reached 5.2 billion shekels ($1.37 billion), a 9% increase from 4.7 billion shekels ($1.24 billion) in the same period last year.
Net profit for the third quarter soared to 189 million shekels ($50 million), compared to just 11 million shekels ($3 million) in Q1 2023. For the first nine months of 2024, net profit stood at 553 million shekels ($146 million), up from 119 million shekels ($31 million) in the same period last year.
Sales for the quarter totaled 4.5 billion shekels ($1.18 billion), a 36% year-on-year increase, while sales for the first three quarters rose to 12.4 billion shekels ($3.27 billion), a 31% increase over the previous year.
Domestic sales to the IDF accounted for 56% of revenue, with Europe and Asia each contributing 19%. The U.S. accounted for just 5%, while sales to Australia were minimal at 3 million shekels ($790,000).
“The increase in profitability stems from higher activity volumes and improved efficiency,” Rafael CEO Yoav Turgeman told Ynet. The company hired 1,800 new employees this year, expanding its workforce by 10%, alongside efforts to enhance operational effectiveness.
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Asked about potential impacts if conflicts in Gaza and northern Israel end, Turgeman noted, “Defense systems orders are long-term and aimed at capability building. Wars accelerate orders, but there’s always a need for replenishing stockpiles after conflict. Our Iron Beam laser defense system will be operational next year.”
Rafael Chairman Yuval Steinitz highlighted the company’s financial strength, saying, “The excellent financial results underscore our resilience. Last month, we received a significant order from the Defense Ministry to expand deployment of the Iron Beam system, set to significantly enhance Israel’s defense capabilities within a year.”
Rafael joins other major Israeli defense contractors, such as Elbit and Israel Aerospace Industries, who have reported historic profits amid the war.