JERUSALEM — Israel Aerospace Industries concluded its first half of 2025 with a 13% enhance in gross sales and a ten% enhance in web revenue, in keeping with the corporate’s monetary statements for the second quarter of the yr revealed on Tuesday.
The Israeli firm’s complete income stood at $3.22 billion within the first six months of 2025, with 65% of it stemming from its gross sales overseas at a time when some Europeans governments have begun to criticize Israel’s actions within the ongoing Israel-Gaza conflict.
IAI famous in its the report that “the State of Israel’s overseas relations have an effect on the corporate’s actions, primarily within the army market.” Nevertheless it added that “as of this date, the corporate just isn’t conscious of any materials influence on the enterprise scenario with its clients as a result of conflict scenario.”
The corporate’s most important buyer stays the Israeli Ministry of Protection, which bought 34.6% of all the corporate’s merchandise. The second vital geographical area for it’s the Asia, which accounted for 28% of its gross sales, adopted by Europe with purchases of 20% of the corporate’s merchandise, North America accounted for 13%, and the remainder of its gross sales have been divided between South America, Australia and Africa.
The very best proportion of its revenue got here from the Missile and Area Programs Division, which accounted for 46.4% and amounted to $1.48 billion within the reported interval. The principle consumers of these methods have been Israel (40.7%), Asia (26.6%) and Europe (22.8%).
IAI’s largest deal on this division stays the sale of the Arrow-3 to Germany, which is scheduled to be delivered by the tip of this yr. This transaction barely lowered the corporate’s order backlog to $25.7 billion as of June 30, 2025, in comparison with $26 billion as of the tip of the primary quarter of this yr, on account of the supply of a lot of the system parts to Germany by that date.
One other significant slice of its income got here from the Elta division, which develops and manufactures superior digital methods within the fields of radar, communications, and digital warfare. The unit accounted for 30.7% of the corporate’s complete income. The remainder of IAI’s income stemmed from its extra actions, such because the sale of army plane, which generated $328 million for the interval, accounting for 10.2% of the corporate’s gross sales.
Tzally Greenberg is the Israel correspondent for Protection Information. He has expertise reporting on financial affairs in addition to protection and cyber firms.
