Another YoY Record-Breaking Quarter: 86% Growth in Net Income to approximately USD 78 million
Approx. 58% growth in operating income and 34% growth in EBITDA to approx. USD 161 million in Q1 2022
- Net income in Q1 2022 leaps by 86% to approx. USD 78 million compared to approx. USD 42 million in Q1 2021
- Increase of 34% in EBITDA to approx. USD 161 million compared with approx. USD 120 million in Q1 2021
- Approx. 58% growth in operating income to approx. USD 106 million (approx. 8.8% of sales) compared with approx. USD 67 million (approx. 6.6% of sales) in Q1 2021
- Gross profit grew by approx. 28% to approx. USD 213 million (about 18% of sales) compared with approx. USD 166 million (approx. 166% of sales) in Q1 2021
- Sales in Q1 2022 rose to approx. USD 1,200 million compared with sales of approx. USD 1,015 million in Q1 2021
- Positive cash flows from operating activities of approx. USD 284 million
- The Company’s order backlog increased to USD 14 billion, representing about 3.3 years of operation
Amir Peretz, IAI’s Chairman of the Board: “The financial results of the first quarter are much more than numbers – they testify, best of all, to the dedication of the employees at IAI, home to some of the most advanced technologies in the world. This is a company that guarantees our country’s ability to face the challenges of the future, and produces groundbreaking and constantly advancing technologies and solutions for the land, naval, air, and space arenas. Our close cooperation with Israel’s Ministry of defence in building a strategy and implementing it strengthens the confidence in the solutions needed by the IDF and by the defence establishment. This collaboration helps strengthen our existing partnerships and expands access to new markets worldwide. We intend to take our impressive quarter results higher, and will continue to step up our marketing efforts at every given opportunity. This is one of my main tasks as Chairman and in my contribution to the success of the company, which leads to the strengthening of the security of the State of Israel. I would like to thank all IAI employees, the CEO, and Management, who are doing everything for the Company’s success and its advancement.”
Boaz Levy, IAI’s President and CEO: “This has been by far IAI’s best quarter in company history, and a direct year-over-year continuation of the record results in 2021. In view of growing worldwide demand for our advanced technological systems, we constantly adapt to new customer needs through innovation, including through the IAI Innovation Center. IAI has recently been ranked seventh among the top 100 employers of choice in the Israeli market, and is in an outstanding position in terms of its advanced technologies and the growing demands for its systems around the world.”
Israel Aerospace Industries Ltd., Israel’s largest national military and civilian security defence company, issues its consolidated financial statements for the quarter which ended on March 31, 2022.
The Company’s sales in Q1 2022 totaled approx. USD 1,200 million compared with approx. USD 1,015 million in Q1 2021, an increase of USD 185 million mainly arising from the increase in the sales of the Systems Missiles & Space Group and the Aviation Group. The sales of the Military Groups (*) in Q1 2022 increased by approx. 13% to approx. USD 1,030 million compared with approx. USD 914 million in Q1 2021, an increase of USD 116 million. The sales of the Aviation Group (*) in Q1 2022 increased by approx. 37% to approx. USD 325 million compared with approx. USD 237 million in Q1 2021 – an increase of USD 88 million owing to the increased revenues in the aircraft, MRO, and business jet divisions.
Sales for export in Q1 2022 accounted for 70% of sales at approx. USD 836 million (approx. USD 364 million to Israel, representing 30% of sales) compared with approx. USD 722 million, accounting for 71% of sales in Q1 2021 (approx. USD 293 million to Israel, representing 29% of sales).
Net income in Q1 2022 grew by an incredible 86% to USD 78 million (approx. 6.5% of sales), compared with net income of approx. USD 42 million (approx. 4.1% of sales) in Q1 2021. The net income of the Military Groups (*) in Q1 2022 increased by 29% to approx. USD 88 million compared with approx. USD 68 million in Q1 2021, an increase of USD 20 million. The net income of the Aviation Group (*) in Q1 2022 amounted to approx. USD 7 million compared with a net loss of approx. USD 8 million in Q1 2021.
EBITDA in Q1 2022 grew by approx. 34% to approx. USD 161 million (about 13.4% of sales), compared with approx. USD 120 million (approx. 11.8% of sales) in Q1 2021.
Gross profit in Q1 2022 amounted to approx. USD 213 million (about 18% of sales) compared with approx. USD 166 million (about 16% of sales) in Q1 2021. The gross profit of the Military Groups (*) in Q1 2022 increased by approx. 12% to approx. USD 170 million compared with approx. USD 152 million in Q1 2021. The gross profit of the Aviation Group (*) in Q1 2022 amounted to approx. USD 24 million compared with approx. USD 14 million in Q1 2021.
Operating income in Q1 2022 grew by 58% to approx. USD 106 million (about 8.8% of sales), compared with operating income of approx. USD 67 million in Q1 2021 (about 6.6% of sales). The increase in operating income stems from the increase in gross profits. The operating income of the Military Groups (*) in Q1 2022 grew by 17% to approx. USD 90 million compared with approx. USD 77 million in Q1 2021. The operating income of the Aviation Group (*) in Q1 2022 amounted to approx. USD 5 million compared with operating loss of approx. USD 5 million in Q1 2021.
Net finance expenses in Q1 2022 amounted to approx. USD 8 million compared with approx. USD 16 million in Q1 2021.
In-house research and development expenses in Q1 2022 amounted to approx. USD 41 million compared with approx. USD 36 million in Q1 2021 (representing 3.4% and 3.5% of sales, respectively).
Net tax expenses – in Q1 2022, the Company recorded net tax expenses of approx. USD 22 million compared with net tax expenses of approx. USD 10 million in Q1 2021. The Company’s income is subject to the ordinary corporate tax rate in Israel – 23%, and it is not entitled to any tax benefits pursuant to the Israeli Law for the Encouragement of Capital Investments, 1959 as it is a wholly-owned government company. The sale of any interests in the Company, even at a miniscule rate, to a non-government party will render the Company eligible for a reduced corporate income tax rate as per said Law.
The order backlog in Q1 2022 amounted to approx. USD 14 billion, compared to approx. USD 13.4 billion at the end of 2021. 77% of the order backlog is held for sale to foreign customers that are widely geographically dispersed, based on a large variety of projects and secures about 3.3 years of operation given the current sales volumes.
Positive cash flows from operating activities in Q1 2022 amounted to approx. USD 284 million compared with positive cash flows from operating activities of approx. USD 167 million in Q1 2021.
Financial Statements
