Israel Aerospace Industry Secures $1.9 Billion Defense Deal Amid Rising Global Tensions

In a major development for the aerospace sector, a leading defense company announced a $1.9 billion contract to supply weapons to a foreign nation.

The specifics of the products and the purchasing country remain undisclosed. Under the leadership of Boaz Levy, the company has been designated as the primary contractor for the Ministry of Defense, tasked with producing and supplying systems to a third party as part of an intergovernmental transaction (GTG). The contract, which will extend through 2031, underscores the company’s expanding role in global defense.

This deal follows the company's previous large-scale transaction, where it sold Arrow missiles to Germany for approximately €3.5 billion. As geopolitical tensions rise both in Israel and globally, defense companies like this one are witnessing significant financial gains.

For instance, the company reported $1.4 billion in revenue in the first quarter of 2024, reflecting a 12% increase compared to the same period last year. Its profit surged by 48% to $135 million. The revenue growth was primarily driven by a 24% increase in sales within the military division, totaling $1.2 billion. This increase was largely attributed to the missile and space systems division, which focuses on developing air defense systems, such as the Arrow for ballistic missile interception, the Barak family of anti-aircraft missiles, loitering munitions like the Harpy and Harop, and precision-guided munitions.