Israel Aerospace Industries announced record-breaking profits in the first half of 2024 thanks to a 25% surge in orders and 78% increase in profits from last year.
“These numbers refer to sales both domestically to the defense system and to international markets. The world continues to express confidence in our systems and the solutions we provide, as our systems are truly the best fit for our clients’ needs,” Shay Gal, VP of External Relations at IAI told The Press Service of Israel.
IAI reported a 115% surge in second-quarter profits, reaching $159 million, up from $74 million a year earlier, and $36.4 million in the first quarter of 2024. Sales grew by 13% to $1.4 billion compared to $1.3 billion in the same period last year. The order backlog hit a record $22 billion.
Moreover, exports accounted for 69% of sales, totaling $973 million, a 27% increase from last year. Sales to the Israel Defense Forces (IDF) reached $447 million, representing 32% of total sales, mainly from the missile and space division. IAI’s first-half net profit was $294 million, a 78% increase from $165 million last year, with total sales rising 12% to $2.8 billion.
This surge reflects a growing global interest in IAI’s advanced defense systems, including the widely acclaimed Arrow-3 missile defense system. The Arrow-3 system, which is capable of intercepting missiles in space, made its first interception when it shot down a Houthi ballistic missile in October. It may have been the first time a missile was shot down outside Earth’s atmosphere, but Israel has not confirmed that.
Israeli air defenses drew further international attention in April when Iran launched a barrage of more than 320 missiles and drones. Most of the UAVs were shot down by American, British and Jordanian forces while Israel shot down nearly all of the cruise and ballistic missiles.
Image - Ministry of Defense