Highest Grossing Year in Company History:
All time-record order backlog of about USD 25 billion
Net income in 2024 leaped by about 55% to USD 493 million; record-breaking EBITDA, gross profit and sales turnover
- Increase in sales to about USD 6,112 million in 2024 compared with about USD 5,327 million in 2023.
- 55% growth in net income in 2024 to about USD 493 million compared with net income of about USD 318 million in 2023.
- 19% growth in annual EBITDA to about USD 792 million compared with about USD 664 million last year.
- Gross profit in 2024 rose by USD 147 million to about USD 1,141 million compared with about USD 967 million in 2023.
- 32% increase in annual operating income to about USD 498 million compared with about USD 376 million last year.
- The Company’s order backlog grew to about USD 25 billion, representing some 4 years of operation compared to USD 18 billion at the end of 2023.
- The Company has free cash flow totaling about USD 3,932 million.
IAI’s President and CEO, Boaz Levy: “We are proud to announce the most outstanding financial results ever recorded by IAI since its inception. The data reflect the Company’s intensive operations and leverage its stability and unprecedented growth over the last few years.
The financial statements underpin the faith that our customers and partners have in the Company’s operations and the state-of-the-art systems which it develops from the perspective of the future battlefield. I wish to thank our customers and partners for their cooperation and vote of confidence in Israel’s technological leadership.
2024 was entirely managed alongside unprecedented fighting in Israel and IAI faced numerous global challenges that affected its performance. I am deeply grateful to IAI’s employees for their relentless efforts to meet enhanced supply quotas to guarantee the satisfaction of our customers and meet our obligations for the success of the entire Company. We will continue to develop innovative solutions and support the security of the citizens of Israel and of our customers worldwide while maintaining our uncompromising excellence toward an even more brilliant future.
The security of the State of Israel, its people and its economy are instrumental to our endeavors, and we will continue to lead the development of highly advanced technological solutions needed for the future battlefield as we have always done. I would like to wish a speedy recovery to the wounded, pray for the safe return of the hostages and offer our condolences to the families who have lost their loved ones. Together we shall prevail.”
IAI’s CFO, CPA Eran Anchikovsky: “IAI continues to exhibit extraordinary results in its contracts, revenues, income and cash flows from operating activities. During these challenging times, the Company has demonstrated its financial stability, commitment to international business obligations and preparedness to support Israel’s security establishment.
The outstanding combination of human capital, groundbreaking technology and financial prowess position the Company at an optimal starting point toward reaching new records.”
Israel Aerospace Industries Ltd., a leader in the Israeli military and commercial homeland defence and aerospace markets, issues its annual consolidated financial statements for the year ended December 31, 2024.
The Company’s revenues in 2024 amounted to about USD 6,112 million compared with about USD 5,327 million in 2023, an increase of about USD 785 million (about 15%), deriving from increased sales in the Company’s Military Groups.
The sales of the Military Groups in 2024 increased by about 15.5% to about USD 5,187 million compared with about USD 4,489 million in 2023, an increase of USD 698 million. The sales of the Aviation Group in 2024 increased by about 6.4% to about USD 1,476 million compared with about USD 1,387 million in 2023, an increase of about USD 89 million.
Sales for export in 2024 totaled about USD 4,029 million (about 66%) and to the local market about USD 2,083 million (about 34%), compared with about USD 3,792 million (about 71%) and about USD 1,535 million (about 29%) in 2023, respectively.
Order backlog at the end of 2024 totaled about USD 25 billion, with wide geographic dispersion, compared with about USD 18 billion at the end of 2023, comprising a large variety of projects and securing about 4 years of operation at current capacity.
Net income in 2024 rose by 55% to about USD 493 million (about 8% of sales), compared with net income of about USD 318 million in 2023.
EBITDA in 2024 totaled about USD 792 million compared with EBITDA of about USD 664 million in 2023, an increase of 19%.
Gross profit in 2024 amounted to about USD 1,141 million (about 19% of sales) compared with about USD 967 million (about 18% of sales) in 2023, an increase of about USD 174 million. The increase in gross profit is mostly a result of the increased sales and profits of the Company’s Military Groups.
Operating income in 2024 grew by about 32% to about USD 498 million (about 8.1% of sales) compared with operating income of about USD 376 million (about 7.1% of sales) in 2023, an increase of about USD 122 million, mainly deriving from the increase in gross profit and partly offset by the increase in R&D expenses compared to last year.
Net finance income in 2024 totaled about USD 129 million as opposed to net finance income of about USD 29 million in 2023, an increase of about USD 100 million.
Total investment in inhouse research and development in 2024 amounted to about USD 387 million, of which about USD 333 million were carried as R&D expenses to profit or loss, compared with about USD 342 million and USD 275 million in 2023, respectively.
In 2024, the Company recorded net tax expenses of about USD 134 million compared with net tax expenses of about USD 93 million in 2023. It should be noted that 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.
Cash flows: in 2024, the Company had positive cash flows from operating activities totaling about USD 2,717 million compared with positive cash flows from operating activities of about USD 889 million in 2023.
Main data for Q4 2024
The Company’s sales in Q4 2024 totaled USD 1,719 million compared with USD 1,454 million in Q4 2023, an increase of about 18%.
Gross profit in Q4 2024 amounted to USD 305 million (17.7% of sales) compared with USD 285 million (19.6% of sales) in Q4 2023.
Net income in Q4 2024 totaled USD 77 million (4.5% of sales) compared with net income of USD 79 million (5.4% of sales) in Q4 2023.
Boaz Levy, IAI CEO
