The company’s EBITDA rose by 11% to USD 240 million, while operating income increased by 12% to USD 165 million. IAI’s gross profit also grew by 12% to USD 305 million, reflecting an increase in sales to USD 1,610 million, up 12% from USD 1,432 million in the same quarter last year.
IAI’s order backlog reached a record USD 26.1 billion, securing approximately 4.3 years of operation at the current sales volume. Positive cash flow from operating activities in Q1 2025 totalled USD 495 million, raising the company’s free cash flow to USD 4.3 billion.
Boaz Levy, IAI President and CEO, expressed satisfaction with the results, stating: “We are proud to present strong business results for the first quarter of 2025, marking a phenomenal start for the year and reflecting an outstanding period for the State of Israel and for IAI, which plays a central role in ensuring the country’s security.” He emphasised that the order backlog, driven by contracts with international customers and the Israeli defence establishment, demonstrates the company’s long-term capability.
Levy noted that IAI’s systems actively contribute to the defence of Israel against diverse threats. “In this challenging geopolitical landscape, marked by increased global demand for defence procurement from a diverse range of customers, IAI continues to stand out as a global leader with combat-proven solutions that serve as a true force multiplier for all our customers,” he added.
Eran Anchikovsky, IAI’s CFO, highlighted the company’s financial stability and growth. “IAI is continuing to grow, demonstrating unsurpassed results in the first quarter of 2025 in all financial parameters, including sales, profits and new contracts,” he stated. He attributed the success to ongoing operating cost-efficiency measures and customer confidence.
The company’s export sales in Q1 2025 amounted to USD 1,041 million, accounting for about 65% of total sales, while local market sales reached USD 569 million, making up about 35%. Sales of the Military Groups increased by 14% to USD 1,389 million, and sales of the Aviation Group rose to USD 372 million.
In-house research and development expenses were USD 60 million, slightly down from USD 63 million in Q1 2024. Net finance income increased to USD 49 million, and the company recorded net tax expenses of USD 50 million, compared to USD 38 million in the previous year.
IAI’s commitment to innovation and its integration of advanced technologies continue to drive the company’s financial success. Anchikovsky concluded, “Integrating innovative technology with financial stability and valuable human capital allows us to successfully face the challenges of tomorrow and continue achieving feats in the future.”
