IAI Publishes its Financial Results for H1 and Q2 2026

Record financial results in the Company’s history;
Groundbreaking order backlog of USD 35 billion; a 40% increase in net profit in H1 of 2026, reaching approx. USD 449 million; continued growth in sales, to approx. USD 4.3 billion in the first half of 2026

• • 40% increase in net income in H1 2026 to USD 449 million compared with USD 320 million in H1 2025. 47% increase in net income in Q2 2026 to USD 229 million compared with USD 156 million in Q2 2025.
    Highest grossing H1 and Q2 in the Company’s history.
  • 39% growth in EBITDA in H1 2026 to USD 650 million (15% of sales) compared with USD 468 million (14% of sales) in H1 2025. EBITDA in Q2 2026 climbed to USD 329 million (15% of sales) compared with USD 228 million (14% of sales) in Q2 2025.
  • 53% rise in operating income in H1 2026 to USD 483 million (11% of sales) compared with operating income of USD 315 million (10% of sales) in H1 2025. Operating income in Q2 2026 grew to USD 244 million (11% of sales) compared with operating income of USD 150 million (9% of sales) in Q2 2025.
  • Gross profit in H126 amounted to USD 806 million (19% of sales) compared with gross profit of USD 598 million (19% of sales) in H1 2025. Increase in gross profit in Q2 2026 to USD 432 million (20% of sales) compared with USD 293 million (18% of sales) in Q2 2025.
  • Sales in H1 2026 reached USD 4,275 million compared with USD 3,228 million in H1 2025. Increase in sales in Q2 2026 to USD 2,189 million compared with USD 1,618 million in Q2 2025.
  • Positive cash flows from operating activities totaling USD 137 million.
  • The Company’s order backlog leaped to USD 35 billion, representing 4.7 years of operation compared with USD 29 billion at the end of FY25.
  • The Company has free cash flow of USD 4 billion.

  Boaz Levy, Chairman of the Board of Israel Aerospace Industries (IAI): “The business results for this quarter continue to reflect IAI’s sustained growth and expansion in business activity. This trend underscores the company’s resilience and was further validated by the reaffirmation of IAI’s ilAAA credit rating in the second quarter, reflecting our financial strength and business stability. IAI’s position in the strategic markets in which we operate is built on continuous investment in technology and innovation, enabling us to drive the company forward and achieve continued success. About a week ago, we successfully completed a test of the Arrow air defense system, that plays a critical role in Israel’s ability to counter ballistic missile threats posed by Iran and its proxies, and providing further evidence of the strategic and technological superiority we deliver to the State of Israel. The proven capabilities of IAI’s systems, together with our close relationships with allies around the globe, enable us to penetrate new markets, drive increased demand for our advanced air defense systems and support our continued market growth. We will continue to strengthen IAI’s long-term competitive advantage and invest in breakthrough technologies that address our customers’ evolving needs. The combination of business stability, innovation and proven operational experience reinforces our position as a global leader. Today, more than ever, the citizens of Israel understand the importance of a strong and thriving Israeli defense industry. The company’s IPO is closer than ever and will enable investment in infrastructure and production lines, while contributing to both national security and the local economy. Through the IPO, every Israeli citizen will have the opportunity to take part in IAI’s success and contribute directly to the security of the State of Israel. On behalf of the Board of Directors, I would like to thank all the people of IAI, whose dedication makes the company’s continued growth possible and supports our country’s security.”

  Guy Bar Lev, Acting President and CEO of Israel Aerospace Industries (IAI): “The financial results demonstrate that IAI is doing everything necessary to ensure the qualitative advantage of the State of Israel and its allies across all domains, in both defense and offense. Our financial results reflect the growing confidence in Israeli technology and the company’s close cooperation with Israel’s defense establishment and our partners around the world. Following the evolving defense environment, we have increased our investment in research and development of advanced technologies that address current operational needs while also providing solutions to future threats. IAI is renowned for its unique capability in developing and producing strategic systems that provide the State of Israel with an operational edge. In response to challenges in the global arena, we are acting across multiple areas to ensure supply chain continuity, so that our customers have access to the most advanced systems and technologies. These impressive achievements, and many more, are the direct result of the dedication and excellence of IAI’s people, who work tirelessly to safeguard the security of the State of Israel.”