Israel Aerospace Industries (IAI) – a major defense contractor – reported almost $5 billion in sales for 2022. This, said IAI, made last year its best since the company’s inception.
Some observers cite the ongoing war in Ukraine as one of the reasons for the increase. But there has also been a significant increase in demand all over the world for Israel’s advanced anti-missile system known as the Iron Dome, which IAI works on. And there is also its Arrow III anti-missile missile that the US has reportedly approved the sale of to Germany. Israel develops such tech in coordination with the US.
IAI reported 44% growth in net income to approx. $213 million, the highest since it was first founded. Positive cash flows from operating activities were approx. $797 million – 445% higher than in 2021.
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The company also reported growth in sales to approx. $4.973 billion compared with approx. $4.477 billion in 2021 and a leap in order backlog to approx. USD 15.6 billion, representing 3.1 years of operation, compared with approx. $13.4 billion at the end of 2021.
Gross profit in 2022 amounted to about $824 million (about 17% of sales), compared with about $696 million in 2021 (about 16% of sales), an increase of about $128 million. IAI said this was mostly deriving from increased sales and profits of the Aviation Group and increased sales in the Systems Missiles & Space Group. The gross profit of the Military Groups in 2022 increased by about 3.5% to about $682 million compared with about $659 million in 2021 – an increase of about $23 million. The gross profit of the Aviation Group in 2022 increased to about $127 million (about 9% of sales) compared with about $59 million (about 5% of sales) in 2021.
Amir Peretz, Chairman of the Board of Directors of IAI said, “Israel Aerospace Industries has this year achieved an all-time record both for new business and net profit, and above all, backlog, for the company’s systems, which both arouse considerable interest and demand around the world.”
Peretz added that this will allow IAI to formulate work plans for the long term, which are the basis of the company’s stability.
“Our achievements are due to IAI’s employees, men, and women alike, who studiously apply themselves to develop the most advanced technologies for Israel’s defense establishment and for use by our many customers, as part of an ongoing examination of, and suitability to, the future battlefield,” he added.
This includes, among other things, developing autonomous land platforms, defense and attack systems, cyber-based systems, artificial intelligence, and of course, other developments that defy the imagination and justify our position as Israel’s national space center.