Rafael Reports Record Growth Despite European Criticism of Security Cooperation

Despite months of sharp rhetoric from several European governments against Israel and calls to halt security cooperation, Rafael Advanced Defense Systems shows no sign of slowdown. The company’s latest financial results reveal continued expansion in revenue, profit and order backlog, defying expectations that political pressure would impact defense deals.

Rafael, led by CEO Yoav Turgeman, reported revenues of NIS 5.2 billion in the third quarter of 2025 — a 14.5% increase compared to the same period in 2024.
Net profit jumped 65%, reaching NIS 311 million in the quarter.

From January to September 2025, Rafael recorded NIS 922 million in net profit, a 67% increase year-over-year. The company is now on track to surpass NIS 1 billion in annual net profit for the first time in its history.

Turgeman noted that all three divisions — Land & Sea, Air & Intelligence, and Air Defense — grew at similar rates and contributed to the rising order backlog.

Air-Defense Systems Drive Growth

Among Rafael’s strongest-performing systems:

• Iron Dome and David’s Sling, which saw expanded production and international demand

• Air-to-air missiles

• SPYDER systems, designed to counter drones, helicopters, aircraft, and tactical ballistic missiles

• Drone Dome, which provides advanced drone-defense capabilities

Turgeman also announced that the “Or Eitan” laser interception system — intended to counter missiles, rockets and aircraft — will enter operational use in December 2025.

Land Systems and Active Protection Technologies

In Rafael’s ground division, the “Windbreaker” (Trophy) active protection system remained a standout product. The system has gained extensive combat experience in Gaza and Lebanon, and is now installed on German Leopard and South Korean K2 tanks.

Rafael also unveiled two new additions to its Spike missile family:

Spike L 4X – Long-Range Precision Missile

• Range: up to 40 km

• Time-to-target: five minutes

• Loitering time: up to 30 minutes

• Combines Spike’s guided-weapons capabilities with autonomous homing technology

Spike L 1X – Tactical Homing Weapon

• Range: up to 5 km

• Warhead: 2.2 kg

• Loitering time: 15 minutes with warhead, 30 minutes for intelligence gathering

Order Backlog Reaches New Record

Rafael’s order backlog rose to NIS 72.3 billion in the third quarter of 2025 — an increase of NIS 6.6 billion from Q2.

“No orders have been canceled,” Turgeman emphasized, despite earlier European statements suggesting possible suspensions of cooperation.

Rafael also received the second of three installments of a $5.2 billion U.S. framework order for Iron Dome, David’s Sling and Or Eitan systems — approved during the Biden administration.

Expanding Workforce and U.S. Production Capacity

The company hired 1,100 new employees in 2025, following 1,800 hires in 2024, and expects additional recruitment before year’s end — though likely fewer than last year.

This week, Rafael inaugurated its joint production facility in Arkansas with Raytheon, dedicated to manufacturing Iron Dome interceptors. The facility is expected to further expand Rafael’s production capabilities for international customers.