JERUSALEM — Israel Aerospace Industries concluded its first half of 2025 with a 13% increase in sales and a 10% increase in net profit, according to the company’s financial statements for the second quarter of the year published on Tuesday.
The Israeli company’s total revenue stood at $3.22 billion in the first six months of 2025, with 65% of it stemming from its sales abroad at a time when some Europeans governments have begun to criticize Israel’s actions in the ongoing Israel-Gaza war.
IAI noted in its the report that “the State of Israel’s foreign relations have an impact on the company’s activities, mainly in the military market.” But it added that “as of this date, the company is not aware of any material impact on the business situation with its customers due to the war situation.”
The company’s most significant customer remains the Israeli Ministry of Defense, which purchased 34.6% of all the company’s products. The second significant geographical region for it is the Asia, which accounted for 28% of its sales, followed by Europe with purchases of 20% of the company’s products, North America accounted for 13%, and the rest of its sales were divided between South America, Australia and Africa.
The highest proportion of its income came from the Missile and Space Systems Division, which accounted for 46.4% and amounted to $1.48 billion in the reported period. The main buyers of those systems were Israel (40.7%), Asia (26.6%) and Europe (22.8%).
IAI’s largest deal in this division remains the sale of the Arrow-3 to Germany, which is scheduled to be delivered by the end of this year. This transaction slightly reduced the company’s order backlog to $25.7 billion as of June 30, 2025, compared to $26 billion as of the end of the first quarter of this year, as a result of the delivery of most of the system components to Germany by that date.
Another significant portion of its revenue came from the Elta division, which develops and manufactures advanced electronic systems in the fields of radar, communications, and electronic warfare. The unit accounted for 30.7% of the company’s total revenue. The rest of IAI’s revenue stemmed from its additional activities, such as the sale of military aircraft, which generated $328 million for the period, accounting for 10.2% of the company’s sales.
Tzally Greenberg is the Israel correspondent for Defense News. He has experience reporting on economic affairs as well as defense and cyber companies.
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