Israel Aerospace Industries announced on Tuesday that its sales in the second quarter rose 13% year over year to $1.6 billion. Net profit for the period reached $156 million. The company reported a first-half net profit of $320 million, the strongest half-year result in its history. By comparison, IAI’s net profit for all of 2024 was about $490 million.
The company’s order backlog at the end of the quarter stood at $25.7 billion, unchanged from the previous quarter. CEO Boaz Levy told Calcalist that the strong backlog and sales growth reflected increased demand both from the Israeli market and from international customers.
Sales in Israel account for roughly 30% of IAI’s total revenue, a share driven higher by the ongoing war. IAI developed and manufactures the Arrow 3 air-defense system, which intercepts ballistic missiles launched at Israel from Yemen. During the 12-Day War with Iran, Arrow 3 was used to counter hundreds of ballistic missile attacks.
IAI filed its report a month late, with the board of directors finally approving the company’s financial statements for the second quarter following the appointment of external directors (EDs) by government ministers about two weeks ago.
The defense company was originally required to submit its reports by the end of August but failed to do so due to the absence of EDs to establish the audit and finance committees of the board of directors, a situation that exposed the company to potential sanctions from the Securities Authority. In place of full financial statements, IAI submitted a preliminary report to the Tel Aviv Stock Exchange summarizing its business activity during the quarter.