Publishing its financial statement for the third quarter (Q3) of 2024 on 21 November, Israel Aerospace Industries (IAI) has declared itself to be marking the most profitable period in the company’s history.
IAI reported a 74% increase in net income in the nine months ending on 30 September 2024 (the reporting period) to about USD 416 million (EUR 395) compared with about USD 239 million for Q3 2023: the most profitable nine-month period in its history. An increase in net income to about USD 122 million in Q3 2024 compared with about USD 74 million in Q3 2023.
Quoted in a company press release, IAI Chairman of the Board Amir Peretz stated, “It is with great satisfaction that I report on the three best years at Israel Aerospace Industries since company’s establishment. Building on outstanding performance in 2022 and 2023, today we conclude another three quarters of exceptional business activity. I am also proud to reflect upon my three years in office, years in which we strengthened IAI’s position as a national and international leader in defense technology and civilian aviation. During this period, IAI achieved an unprecedented order pipeline valued at some USD 25 billion, with breakthrough projects in strategic markets worldwide.”
The order backlog at the end of 2023 was about USD 18 billion, meaning there has been an increase of around USD 7 billion.
IAI saw a 33% growth in EBITDA in the reporting period to about USD 646 million compared with about USD 487 million in the corresponding period of last year, while operating income grew in the reporting period to about USD 431 million (about 9.8% of sales) compared with operating income of about USD 292 million (about 7.5% of sales) in the corresponding period of last year.
Gross profit growth in the reporting period to about USD 836 million (about 19% of sales) compared with about USD 682 million (about 18% of sales) in the corresponding period of 2023.
Boaz Levy, IAI’s president and CEO, stated, “At this challenging time, as the State of Israel faces a war on multiple fronts and IAI systems play a critical role defending the country, these business results reflect an additional layer of the state’s economy.”
The operating income of the military groups within IAI for the nine months to the end of September 2024 was about USD 367 million compared with about USD 272 million for the corresponding period of 2023. The operating income of IAI’s Aviation Group for the same period amounted to about USD 49 million compared with operating income of about USD 32 million in the corresponding period of 2023.
Levy added, “The large-scale contracts we have signed with our overseas customers illustrate the deep business relations we have cultivated and a recognition of Israel’s technological superiority. We have achieved this despite this period of national crisis, maintaining supply chain continuity and expanding our international relations.”
Originally founded in 1953 as Bedek Aviation Company, state-owned IAI is Israel’s largest aerospace and defence enterprise.
