Rafael Advanced Defense Systems Ltd. Announces its financial results for 2025, as approved by the company’s Board of Directors.

2025 Full-Year Highlights:

• Sales reached $6.8 billion — surpassing the $6 billion threshold for the first time. 46% of sales were to international customers.
• New orders totaled $10.4 billion, up from $8.3 billion in 2024.
• Order backlog reached a record $23.3 billion at year-end — equivalent to 3.3 years of sales, with approximately half from export orders.
• Net profit exceeded $400 million for the first time, reaching $423 million.

Q4 2025 was Rafael’s strongest quarter on record, with sales of $2.2 billion and net profit of $134 million.

Chairman Dr. Yuval Steinitz: “We are publishing these results in the midst of a decisive war against an enemy that seeks our destruction. The past year and Operation Rising Lion in particular has once again underscored the critical importance of technological superiority to Israel’s security. Rafael’s advanced systems continued to play a central role in Israel’s most complex defense missions. In December, we delivered the high-energy laser system “IRON BEAM” to the Israeli Air Force a landmark achievement in innovative defense capability. Rafael remains a strategic asset to the Israeli economy through long-term investment in R&D and in strengthening local industry. These achievements are above all the result of the professional excellence, innovation, and deep sense of mission that define our people.”

CEO Yoav Tourgeman:”2025 was a year of continued rapid growth, alongside intensive operational support to Israel’s defense establishment and rising demand from customers worldwide. Rafael is the largest and most central supplier to Israel’s defense establishment, and we work around the clock to provide the solutions required for intense combat and the protection of Israeli civilians. We significantly expanded our R&D investment and our development and production capacity. During the year, Rafael onboarded approximately 2,000 new employees, and set new records in both annual sales and Q4 performance, reflecting the deep trust placed in Rafael’s systems and capabilities.”

Operational Highlights — 2025:

• In Operation Rising Lion (June), Rafael systems performed with distinction across both defensive and offensive missions.
• In May, Rafael’s laser systems achieved dozens of interceptions — a world first.
• In September, Rafael’s high-power laser system completed its full development test series and was formally delivered to the Israeli Air Force in December.
• Iron Dome and David’s Sling completed successful test series against advanced threat profiles. The Ministry of Defense signed a multi-billion dollar contract with Rafael for expanded serial production of Iron Dome.
• Rafael launched the new L-SPIKE loitering munition category. SPIKE missiles are now operated by over 46 countries, with three additional countries joining in 2025.
• Rafael and Kratos launched Prometheus Energetics — a $175 million joint venture for rocket motor production in the United States.
• Rafael and Raytheon inaugurated a new Iron Dome interceptor production facility in Arkansas, USA.
• Trophy APS — the world’s only operational active protection system — was delivered to the German Army on the Leopard tank, and will be integrated on K2 tanks under an agreement with Hyundai Rotem. Trophy APS is now integrated on 16 platforms worldwide.
• The Litening 5 targeting pod was selected by the German Parliament for the Eurofighter Typhoon.
• Rafael opened a new R&D branch in Har Hotzvim, Jerusalem and onboarded approximately 2,000 new employees across sites in the Krayot, Gush Segev, Beer Sheva, Shlomi, Tel Aviv, and Hadera.
• Rafael invests more than 8% of annual revenues in R&D every year.
• Rafael received two Israel Security Prizes (the 62nd and 63rd) for exceptional technological and operational contribution during the war.

Summary Table (USD)

Rafael

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