In a recent briefing held at Israel Aerospace Industries (IAI) headquarters on March 13, executives announced that the company has achieved a record gross income for 2024, alongside an unprecedented backlog of orders valued at approximately $25 billion. This notable performance comes amid shifting global defense requirements and a surge in international interest in IAI’s advanced military solutions.

Boaz Levy, the company’s President and CEO, and Eran Anchikovsky, the Chief Financial Officer, elaborated on IAI’s impressive financial trajectory, reporting a significant increase in new orders, which have escalated by nearly $7 billion over the past six years. Notably, around 80 percent of the company’s revenue is derived from overseas exports, reflecting IAI’s growing influence in the worldwide defense sector.

“The current geopolitical climate has prompted every world leader to prioritize the protection of their populations against emerging threats,” Levy stated. He emphasized the trend of modern conflicts occurring within urban settings rather than conventional frontlines, which has led to heightened defense procurement on a global scale. Levy pointed particularly to changes in Europe, as many nations reassess their military capabilities in light of recent events.

The spike in business for IAI is particularly striking given the context of the ongoing multi-front conflict precipitated by Hamas’s attack on Israel on October 7, 2023. IAI is known for manufacturing the Arrow air defense system, an integral component of Israel’s sophisticated multi-layered defense network, which has proven effective in countering threats from various adversaries, including Hamas, Hezbollah, and even direct attacks from Iranian entities.

In response to the challenges posed by the war, Levy assured stakeholders that IAI maintained its commitment to fulfilling international contracts, including a noteworthy Arrow defense system sale to Germany finalized in November 2023. “We have escalated our manufacturing lines, support, and maintenance to meet our obligations,” he affirmed, reinforcing the company’s dedication to its global partnerships despite the tumultuous operational environment.

Looking ahead, Levy discussed the strategic move toward taking IAI public through an initial public offering (IPO). He articulated the necessity of this step for both the company and the state of Israel. “It’s essential for Israel and the company. I believe it will happen,” he stated, underscoring the potential for untapped resource generation the IPO could present.

While IAI stands alongside Rafael Advanced Defense Systems and Elbit Systems as one of Israel’s leading defense manufacturers, it remains unique as a government-owned entity in a competitive market—Elbit being the only publicly traded firm among the trio. An IPO could leverage IAI’s current strong balance sheet, setting the stage for future expansion and innovation.

During the March 13 visit, IAI also showcased advancements in autonomous technologies, including their conversion of the D-9 bulldozer into an autonomous operational unit. This adaptation is poised to enhance the safety and efficiency of IDF engineering operations in contentious areas such as Gaza. Equipped with cutting-edge cameras, sensors, and LiDAR, the autonomous D-9 can autonomously navigate missions, plan routes, and avoid potential hazards—significantly contributing to the safety of on-ground personnel.