IAI’s total sales reached approximately $7.38 billion in 2025, compared with about $6.11 billion in 2024. The increase of roughly $1.27 billion represents growth of around 21 percent across the company’s divisions.
Net income rose sharply by around 45 percent to approximately $712 million, compared with $493 million in the previous year. The company also recorded substantial growth in EBITDA, which increased by about 37 percent to approximately $1.08 billion.
Gross profit rose by $292 million to about $1.43 billion, maintaining a margin of roughly 19 percent of sales. Operating income also increased significantly, rising by 51 percent to approximately $751 million compared with about $498 million in 2024.
IAI reported that the results were driven by higher sales across its Systems Missiles & Space Group and the ELTA Group. Sales growth was also recorded in the Aviation Group, reflecting increased demand across both military and commercial aerospace activities.
The company’s military divisions recorded particularly strong growth during the year. Sales in these groups rose by around 23 percent to approximately $6.40 billion, up from $5.19 billion in 2024.
The Aviation Group also posted growth, with sales increasing by about 9 percent to approximately $1.61 billion. This represented an increase of around $132 million compared with the previous year.
Export sales accounted for the majority of the company’s revenue. In 2025, export sales totalled approximately $4.88 billion, representing 66 percent of total revenue, while the domestic Israeli market accounted for $2.50 billion.
The company’s order backlog reached approximately $29 billion at the end of December 2025, compared with about $25 billion a year earlier. According to IAI, the backlog represents roughly four years of operations at current sales levels.
Around 71 percent of the backlog consists of orders from international customers across multiple regions. The company also reported strong financial stability, with positive operating cash flow of about $612 million and free cash flow of roughly $4 billion.
IAI Chief Executive Officer Boaz Levy said the company’s results were achieved despite a complex security environment. “A highly complex security reality marked the year 2025 for the State of Israel—a reality that continues to compel us.”
He emphasised the company’s role in supporting national security during ongoing operations. “Even today, as the country remains engaged in security operations across various fronts, IAI is proud to stand at the forefront, supporting the defense establishment and strengthening Israel’s position as a technological powerhouse on the international stage.”
Levy described the company’s 2025 financial performance as one of the strongest in its history. “The financial statements we are presenting today, summarizing the year 2025, reflect an exceptional year in IAI’s history: a year of significant growth, rising demand for our diverse advanced systems, and sustained confidence from our customers around the world, who account for approximately 70% of our total orders.”
He also credited the company’s workforce and technological capabilities for the results. “These excellent results are a direct testament to IAI’s engineering and technological capabilities and to the dedication of the thousands of employees who work with professionalism, responsibility, and a deep sense of mission—day and night, even during these turbulent times.”
Levy added that the company’s teams continue to deliver advanced technologies to strengthen security. “Thanks to their commitment and excellence, IAI continues to develop, manufacture, and deliver advanced systems that enhance the security of the State of Israel and the safety of our customers worldwide.”
He also thanked the company’s partners and leadership for their contribution to its success. “I would like to thank them for their meaningful contribution to the company’s success. My thanks also extend to the Company’s Board of Directors and to the defense establishment for their partnership, guidance, productive cooperation, and high level of achievement.”
Levy noted that cooperation with Israel’s defence institutions plays a key role in maintaining technological advantages. “Our deep, longstanding strategic partnership with the defense establishment and the IDF enables us to continue developing advanced technological solutions that provide Israel with a competitive advantage on the battlefield and ensure the protection of the country’s citizens.”
Looking ahead, the company plans to continue investing in innovation and advanced technologies. “IAI will continue to invest in innovation, lead technological breakthroughs, and strengthen Israel’s capabilities in the face of future security challenges, while upholding professional excellence and national responsibility.”
