Israel Aerospace Industries Reports Strong 2024 Results

Israel Aerospace Industries (IAI) has posted impressive financial results for 2024, reporting a net profit of $493 million, marking a 55% increase from the previous year. This success is underscored by an all-time high orders backlog of $25 billion, providing a robust pipeline for the coming years.

IAI's revenue for the year grew by 15% to $6.1 billion, with its military divisions benefiting from a 15.5% rise in sales, largely due to the Swords of Iron conflict. The war significantly impacted the company’s local sales, which rose to 34% of its total revenue, reaching $2 billion, up from 29% ($1.5 billion) in 2023. This reflects IAI’s strengthening position within the domestic market as well as its growing international footprint.

Geographically, Asia emerged as the leading sales destination for IAI in 2024, increasing its share from 29% to 36.2%. Meanwhile, North America's share decreased from 18% to 14%. Notably, the ongoing Russia-Ukraine war has driven demand for defense systems in Europe, boosting the continent's share of IAI's sales from 12.4% to 19.3%.

IAI's backlog of orders ensures at least four years of continued activity at the current production rate, securing long-term business for the company. In addition to this, the company’s EBITDA saw a 19% increase, reaching $792 million, further cementing IAI's financial resilience.

IAI's achievements come at a time of significant geopolitical and economic challenges, as the global demand for defense systems continues to surge, especially in the wake of regional conflicts. The company’s technological expertise and strategic positioning have allowed it to capitalize on these opportunities, positioning IAI for continued success in the coming years.

In a related story, TSG IT Advanced Systems, an Israeli company specializing in advanced software systems for defense and commercial markets, has signed a significant strategic cooperation agreement with a U.S. defense company. The deal, valued at millions of dollars, will integrate TSG’s technology into the U.S. company's defense systems, potentially enhancing tactical and strategic capabilities globally. The collaboration highlights Israel's growing role in the global defense technology market.