Israeli state arms maker; drones over Gaza, Arrow interceptors for export
Company · Israel · Organization
Israel Aerospace Industries is the Israeli state's own arms manufacturer and maker of the Arrow interceptors used against Iranian missiles. UN Special Rapporteur Francesca Albanese's July 2025 report names IAI, with Elbit, as the main developer of the drones that fly alongside Israel's fighter jets over Gaza. Arrow 3, built with Boeing, intercepted Iran's missile attack of April 2024 and Houthi missiles from Yemen. The genocide years delivered record profits. Sales rose from $5.3B in 2023 to $7.4B in 2025. In H1 2026 IAI reported $4.28B in sales and $449M in net profit, up 40%, with a record $35B backlog. Its missiles and space division, which makes Arrow, passed $1B in half-year sales for the first time. It sells the same technology abroad: Germany's Arrow 3 purchases exceeded $6.5B by Jan 2026, and Slovakia bought the Barak MX. Exports made up 66% of H1 2026 sales, so foreign buyers help bankroll the state that owns it.
● confirmed by a primary document · ○ reported
Israel Aerospace Industries Ltd. ("the Company") was founded in 1966 and is a "wholly-owned government company", as this term is defined in the Israeli Government Companies Law, 1975
Israel Aerospace Industries Ltd. ("the Company") was founded in 1966 and is a "wholly-owned government company", as this term is defined in the Israeli Government Companies Law, 1975
IAI ... the prime contractor for the system's development and production
Israel Aerospace Industries has signed a contract worth approximately USD 3.1 billion with Israel Ministry of Defense for the expansion of Germany's procurement of the Arrow 3 missile defence system. ... The total value of the Arrow 3 programme is expected to exceed USD 6.5 billion, making it the largest defence export deal in Israel's history
Under the 560 million euro agreement signed in 2024, the Israel Ministry of Defense (IMOD), through its Defense Export Directorate (SIBAT), together with Israel Aerospace Industries (IAI), announced today the delivery of the BARAK MX air-defense system
Initial deliveries of the system have reportedly arrived in recent days (Barak MX, Israel Aerospace Industries)
Less than a year ago, Vietnam ordered two intelligence satellites from Israel Aerospace Industries (IAI) in a deal valued at approximately $700 million
The two countries reportedly finalised a deal worth approximately US$680 million for two advanced surveillance satellites from Israel
$500 million deal was concluded between Israel and Morocco for the Barak MX air and missile defence system
Sales: 2025 $7,384m; 2024 $6,112m; 2023 $5,327m (consolidated statement of profit or loss)
Sales (USD millions): 2025 7,384; 2024 6,112; 2023 5,327
Sales in H1 2026 reached USD 4,275 million compared with USD 3,228 million in H1 2025.
Net income: 2025 $712m; 2024 $493m; 2023 $318m
Net income (USD millions): 2025 712; 2024 493; 2023 318
40% increase in net income in H1 2026 to USD 449 million compared with USD 320 million in H1 2025.
First-half revenue reached $4.275 billion, compared with $3.88 billion in the same period last year. ... first-half net profit jumping 40% to $449 million from $320 million ... order backlog also climbed to an all-time high of $35 billion
The Company's order backlog leaped to USD 35 billion, representing 4.7 years of operation compared with USD 29 billion at the end of FY25.
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