Amid the ongoing Gaza war and increasing global demand for defense systems, Rafael Advanced Defense Systems Ltd. has reported robust financial results for the second quarter of 2024. The company achieved sales of NIS 3.9 billion ($1.1 billion), marking a 25% increase compared to the same period last year.
New orders in the second quarter reached NIS 6.4 billion ($1.7 billion), a 65% jump from the same quarter in 2023. For the first half of 2024, Rafael secured orders totaling NIS 14.2 billion ($3.8 billion), representing a 34% increase compared to the first half of 2023.
The company’s order backlog hit an all-time high of NIS 59 billion ($16 billion), up from 41 billion in the same period last year. Notably, 65% of the new orders in the first half of the year came from the IDF, a rise from previous years when the IDF accounted for around 50% of orders.
Rafael's net profit for the first half of 2024 stood at NIS 364 million ($98 million), up from 110 million in the second half of 2023. In the second quarter alone, net profit reached NIS 132 million, compared to 61 million in the same period last year.
The company's sales for the first half of 2024 totaled NIS 7.8 billion, a 28% increase from 6.1 billion in the first half of 2023. Approximately 50% of these sales were to the IDF, with the remainder destined for export.
Rafael CEO Yoav Turgeman commented, "The results are very strong despite the challenging conditions of war and manpower shortages. We continue to show growth. Many drones are being intercepted by our Iron Dome systems, which are continually improving in performance. We hope that the 'Iron Beam' laser-based defense system will enter operational use next year. The laser allows for cost-effective interception of any type of target at the speed of light."
Rafael Chairman Yuval Steinitz added, "Rafael concludes the first half of 2024 with excellent financial results and growing demand for its systems both domestically and internationally. S&P's decision to raise Rafael's rating to the highest level in Israel reflects the company's financial strength, including increases in profit, orders, and sales, reaching new peaks.
"Alongside its groundbreaking technological developments, Rafael is also achieving the extraordinary in its financial performance, showing consistent growth with improvements of dozens or even hundreds of percent in most parameters compared to previous years. Rafael's employees and managers are working tirelessly, especially during this time of war, to fulfill the company's vision and remain a cornerstone of Israel's security."