IAI said the backlog represents about 4.4 years of operations at current sales levels. About 74% of the backlog is intended for foreign customers and covers a broad range of projects across multiple regions.
Revenue in the first quarter rose to about $2.09 billion, compared with about $1.61 billion in the same period of 2025. The increase of about $476 million, or roughly 30%, mainly reflected higher sales across all business groups, particularly the Systems, Missiles and Space Group and ELTA Group.
Net income increased by 34% to $220 million, equal to about 11% of sales, compared with $164 million, or about 10% of sales, in the first quarter of 2025. Operating income rose 45% to about $239 million, compared with $165 million a year earlier.
EBITDA grew by 34% to $321 million, compared with $240 million in the first quarter of 2025. Gross profit reached $374 million, or about 18% of sales, compared with $305 million, or about 19% of sales, in the same period last year.
IAI also reported positive cash flow from operating activities of about $932 million, compared with about $495 million in the first quarter of 2025. The company said it held liquid assets of about $4.8 billion.
Sales by IAI’s military groups rose 31% to about $1.83 billion, compared with about $1.39 billion in the first quarter of 2025. Sales by the aviation group increased 12% to $415 million, up from $372 million a year earlier.
Export sales totalled about $1.35 billion, or 65% of revenue, while sales to the Israeli market reached about $738 million, or 35% of revenue. The export and domestic sales split remained broadly similar to the first quarter of 2025.
Boaz Levy, who recently served as IAI’s president and chief executive, has assumed the role of chairman of the board. Moshe Levy has been appointed acting president and chief executive while continuing to serve as executive vice-president and general manager of the Military Aircraft Group, pending completion of the appointment process for a new president and chief executive.
“We are proud to open the first quarter of 2026 with exceptional business results, reflecting the unique trust placed in IAI by our allies and customers in Israel and around the world,” Boaz Levy said. “This trust is built on shared values, long-standing partnerships, and a commitment to building a safer future for the State of Israel and the entire free world.”
Levy said IAI remains central to Israel’s security and economic growth, with its systems operating daily to protect Israeli citizens against a wide range of threats. He said those capabilities were demonstrated more prominently during the recent war, especially the Arrow air defence system against ballistic threats.
“IAI is blessed with some of the finest minds, employees from all sectors of Israeli society, who deserve tremendous appreciation for their contribution to both national security and the economy, driven by a deep sense of mission, dedication, and commitment,” Levy said.
“I am confident that the company’s developments will continue to serve as a significant security anchor for the State of Israel, provide the defense establishment with groundbreaking capabilities that preserve its qualitative edge, and strengthen our partners and allies around the world,” he added.
IAI Chief Financial Officer Eran Anchikovski said the results showed continued growth and improved profitability. “We are proud to present, through our financial statements, another quarter of consistent growth in IAI’s operations and improved profitability, as the Company continues to strengthen its position and set new records that reflect its financial strength, business resilience, and ability to create long-term value,” he said.
“Sales volume, profitability, operating cash flow, and order backlog reflect the strength of the Company’s operations and the strong global demand for its products and solutions,” Anchikovski added.
Anchikovski also said a planned initial public offering would mark another important stage in the company’s development. “We believe that the planned IPO will represent another significant milestone in the Company’s development and will further enhance its ability to expand investments in research and development, accelerate growth, and continue strengthening its production capacity and technological capabilities that will support the next generation of products,” he said.
IAI said in-house research and development expenses were about $49 million in the first quarter, compared with about $60 million a year earlier. Net finance income totalled about $35 million, down from about $49 million in the first quarter of 2025.
The company recorded net income tax expenses of about $61 million, compared with about $50 million in the first quarter of 2025. IAI said it is subject to Israel’s ordinary 23% corporate income tax rate and is not entitled to certain tax benefits because it remains a wholly owned government company.
