IAI Reports Record Backlog Surge in Profits and Impressive Growth in Q3 2024

Israel Aerospace Industries (IAI) has released its third-quarter financial results for 2024, showcasing robust growth across key metrics. The company reported a record backlog of $25 billion, a significant increase from the previous quarter’s $22 billion. The net profit for the third quarter reached $122 million, marking a 60% rise compared to $74 million in the same period last year. Revenues also saw a notable 16% increase, rising to $1.5 billion.

In its Space and Missile Systems Division, which saw total sales of approximately $1.87 billion in the first nine months of 2024, compared to $1.63 billion during the same period in 2023. The division’s Arrow system has gained significant global demand following its successful performance during Israel’s Operation Iron Swords. In response to this growing demand, IAI has increased its research and development budget, with spending rising from $65 million in Q3 2023 to $81 million in Q3 2024.

Military Division Sales Surge and Export Growth

The military division of IAI also showed strong performance, with sales increasing by 14% year-on-year to NIS 3.7 billion ($1.0 billion) in the first nine months of 2024. Export sales in the third quarter accounted for $958 million, representing 62% of total sales, a notable increase from 31% in the same quarter last year. This increase was driven by a rise in orders from Israel’s Ministry of Defense.

Record Profits and Dividend Announcement

IAI’s strong financial performance in the third quarter follows its impressive growth over the past few years. Amir Peretz, Chairman of the IAI Board of Directors, who is set to step down at the end of the month, praised the company’s achievements, highlighting the groundbreaking projects and innovations that have contributed to IAI’s success.

In June, the IAI Board of Directors approved the distribution of a $155 million dividend, pending approval from the Companies Authority and the General Assembly. The actual payment will be finalized after discussions between the Board Chairman and the Companies Authority regarding the portion to be earmarked for infrastructure investments.

IAI CEO Boaz Levy: Overcoming Boycotts 

IAI CEO Boaz Levy also commented on the company’s success, emphasizing the recognition of Israel’s technological superiority despite challenging global conditions. "The large-scale contracts we have signed with customers abroad indicate the recognition of Israel’s technological edge, even during times of crisis," Levy stated. "Despite attempts to boycott us, our customers continue to trust us, and we remain focused on developing innovative technologies."

Levy specifically addressed the French boycott of Israeli industries, stating, "The line led by Macron excluded Israeli industry from two exhibitions, but this does not affect us. We continue to meet with clients globally, whether or not France sponsors us. There are many exhibitions worldwide where we are welcomed, and as shown in these reports, the boycott is merely noise."

Looking Ahead

As IAI continues to expand its global reach, the company’s outlook remains positive, driven by continued demand for its advanced aerospace and defense technologies. With a strong backlog of orders, growing revenues, and ongoing investment in innovation, IAI is well-positioned for further growth in the years to come.