IAI Posts Strong H1 2025 Results as Germany Boosts Military Sales
Israel Aerospace Industries (IAI) has seen a significant boost in sales and profits in the first half of 2025. The company's largest customer remains the Israeli Ministry of Defense, but substantial military supplies and contracts are also associated with Germany.
IAI's Missile and Space Systems Division was the highest-earning unit, contributing 46.4% of its revenue. The Arrow-3 sale to Germany was the largest deal in this division. Asia was the second-largest market for IAI, representing 28% of its sales.
IAI's Elta division, specializing in advanced electronic systems, accounted for 30.7% of the company's total revenue. IAI reported a 13% increase in sales and a 10% increase in net profit for the first half of 2025, with 65% of its revenue coming from international sales. The company acknowledged that Israel's foreign relations, particularly in the military market, can impact its activities.
IAI's strong performance in the first half of 2025 is driven by both domestic and international demand. While the Israeli Ministry of Defense remains its largest customer, Germany's significant purchases also contribute to the company's success.
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