Rafael defense systems achieves record profit amidst rising global demand
- Rafael Advanced Defense Systems achieved NIS 17.8 billion in sales for 2024, a 27% increase from 2023.
- The company reported a significant net profit surge of 64%, attributed to increased defense spending due to regional conflicts and global market demand.
- Rafael's growth indicates a strong role in global defense, with a focus on community and international partnerships.
In 2024, Rafael Advanced Defense Systems, based in Haifa, Israel, achieved remarkable financial results with sales amounting to NIS 17.8 billion (approximately $4.84 billion), marking a significant growth of 27% compared to the previous year. The company's net profit surged by 64%, reaching NIS 950 million (about $259 million). A notable factor in these earnings was the increase in defense spending by Israel during ongoing conflicts with Hamas, Hezbollah, and Iran, as well as heightened demand for military technology amid Russia's war in Ukraine, which led to an influx of contracts from European nations. In addition to its impressive revenue growth, Rafael recorded a historic backlog of orders worth NIS 64.8 billion (approximately $17.6 billion), an increase of 24% from the prior year. Notably, 46% of the company's revenue was generated from international sales, indicating a diversification in its customer base and reliance on foreign markets. Some of its leading products, such as the Iron Dome and David's Sling air defense systems, have played a crucial role in saving lives and allowing Israeli forces to maintain operational flexibility during conflicts. Rafael's innovations include the development of the Iron Beam laser defense system, anticipated to become operational in mid-2025. This system is designed to intercept various aerial threats, including rockets and drones, and will be integrated with the Iron Dome. The company has ensured its continued growth by focusing not only on financial outcomes but also on community impact, creating employment opportunities in northern Israel, where it is a significant employer. The fourth quarter of 2024 was particularly strong for Rafael, with sales hitting NIS 5.5 billion (around $1.5 billion), representing a 20% increase from the same period in 2023. During this quarter alone, the company secured approximately NIS 11 billion (about $3 billion) in new orders. Rafael has successfully positioned itself within the global defense industry, bolstered by strategic partnerships, such as the inauguration of a new missile factory in Arkansas alongside US defense contractor Raytheon, signifying a deepening of ties in international defense collaborations.