Israel Aerospace Industries (IAI) reported record financial results for 2025, with its order backlog surpassing $28 billion for the first time, according to financial statements released Wednesday.
The company’s net profit rose 45% to approximately $712 million, while annual sales increased 21% to $7.4 billion, up from $6.1 billion in 2024.
Amid heightened global security tensions, the contribution of IAI’s military divisions grew significantly. Defense-related sales climbed 23% to $6.4 billion in 2025, compared with $5.2 billion the previous year.
IAI CEO Boaz Levi welcomed the results, calling them a milestone for the company.
“We are very pleased with the company’s performance. The numbers speak for themselves," Levi said. “Our order backlog has grown, and globally we are doing strong business. This is an exceptional year in our history - a year of significant growth and rising demand from customers around the world, who now account for about 70% of our orders."
Levi also emphasized that IAI remains a government-owned company whose profits return to the state treasury, but argued that a public offering has become increasingly necessary.
“A company growing at our pace and competing in the global market needs the same tools as any other business," he said. “Listing the company would help remove the restrictions that currently limit it."
Addressing the company’s performance during the ongoing conflict, Levi said operational details remain classified but expressed satisfaction with the results.
“We are not permitted to publish interception statistics, but we are satisfied with the system’s performance," he said.
Levi noted that IAI is currently developing next-generation missile defense systems, including Arrow 4 and Arrow 5. The already operational Arrow 3 is part of Israel’s multi-layered missile defense network, while Arrow-4 is intended to replace the older Arrow 2 and add an additional defensive layer.
“The current campaign includes a variety of ballistic threats, and the system is operating as expected," Levi said, adding that the fourth quarter was particularly strong.
He credited the company’s workforce for the results.
“IAI employees have been working at full intensity for three years, and around the clock in the past two weeks," Levi said.