Israel Aerospace Industries Reports Record Profits and Growth in First Half of 2024

In the first half of 2024, IAI achieved a net profit of $294 million, a 78% increase from the $165 million reported in the same period last year, making it the most profitable half-year in the company’s history. The second quarter of 2024 alone saw a 115% rise in net profit to $159 million, compared to $74 million in the corresponding quarter of 2023.

Sales for the first half of the year increased by 12% to $2.85 billion, up from $2.54 billion in the previous year. The second quarter alone recorded $1.42 billion in sales, reflecting a 13% year-over-year growth.

IAI’s operating profit for the first half of 2024 rose to $310 million, representing 11% of sales, compared to $205 million, or 8% of sales, in the same period last year. In the second quarter, operating profit increased to $163 million, or 11% of sales, up from $88 million, or 7% of sales, in the same quarter last year.

Gross profit for the first half of 2024 also saw a significant increase, reaching $554 million, or 19% of sales, compared to $456 million, or 18% of sales, in the previous year. The second quarter gross profit stood at $281 million, or 20% of sales, up from $215 million, or 17% of sales, in 2023.

Robust Order Backlog

The company reported an order backlog of $22.2 billion, securing its long-term growth prospects. IAI’s cash balances and liquid assets now total approximately $3 billion, reinforcing its financial stability.

The credit rating agency S&P affirmed IAI's domestic credit rating at the maximum ilAAA and its international rating at A, both with a stable outlook.

Leadership Statements

Amir Peretz, Chairman of IAI, expressed pride in the company’s achievements, emphasizing the dual role of IAI in both national security and maintaining strong business continuity. "IAI's business results are a reason for pride for our employees, but also for all Israeli citizens," Peretz said. "We religiously fulfill our national mission, the most important, for the security of the country every day, hour by hour, and at the same time we make sure that the business continuity will not be harmed."

Boaz Levy, CEO of IAI, highlighted the company’s continuous growth and commitment to technological leadership. "The company's financial results have been on a constant rise in recent years and they reflect the significant and wide-ranging actions both with the Israeli security system and with our customers abroad," Levy stated. He also noted the company’s increased investment in research and development as crucial to meeting the evolving demands of both military and commercial customers.

Conclusion

IAI’s record performance in the first half of 2024 underscores its pivotal role in both Israel’s defense sector and the global aerospace market, with continued investments ensuring future growth and technological advancement.