Rafael Defense Systems reports 64% surge in profits, records earnings for 2024

The company said 46% of the year’s revenue was generated from abroad.

By Pesach Benson, TPS

Rafael Advanced Defense Systems reported record earnings in 2024 with a 64% surge in its net profit for 2024, the state-owned defense contractor announced on Wednesday.

The Haifa-based Rafael said it reached NIS 17.8 billion ($4.84 billion) in sales, a growth of 27% from the previous year.

“Rafael’s advanced systems, such as Iron Dome, David’s Sling and Windbreaker saved thousands of lives and at the same time made it possible to conduct a war routine and provided breathing space for maneuvering forces,” said Rafael Chairman, Dr. Yuval Steinitz.

“At the same time, this year we also continued the development of Rafael’s laser system, which is the only one of its kind in the world.”

Sales increased by 27%, reaching a total of NIS 17.8 billion ($4.84 billion), compared to NIS 14 billion ($3.82 billion) in 2023. Rafael also saw a 64% surge in its net profit, which climbed to NIS 950 million ($259 million).

Rafael also noted a historic backlog of orders amounting to NIS 64.8 billion ($17.6 billion), a 24% increase from the previous year. The backlog represents 3.6 years of sales, with nearly half of the orders coming from international markets.

The company said 46% of the year’s revenue was generated from abroad.

Rafael’s success stems from Israel’s increased defense spending during the past year’s war with Hamas, Hezbollah, and Iran and its proxies, while Russia’s war in Ukraine sparked a surge in European contracts.

Rafael is best known for its Iron Dome and David’s Sling air defense systems. Windbreaker, also known as Trophy, is an active protection system for armored military vehicles.

The groundbreaking Iron Beam laser defense system is expected to become operational in mid-2025. Iron Beam is designed to intercept a wide range of aerial threats, including rockets, mortars, unmanned aerial vehicles (UAVs), and cruise missiles.

The plan is to integrate Iron Beam into the Iron Dome system. In the future, an algorithm will determine whether to shoot down aerial threats with a laser or an interceptor.

The fourth quarter of 2024 marked a record-high performance for Rafael, with sales reaching NIS 5.5 billion ($1.5 billion), a 20% increase from the same period in 2023. In this quarter alone, the company secured approximately NIS 11 billion ($3 billion) in orders.

Rafael reported NIS 30.4 billion ($8.2 billion) in new orders in 2024, surpassing the previous year’s total of NIS 29.9 billion ($8.15 billion).

The surge led to job creation, as approximately 1,800 new employees joined Rafael.

“We are proud to continue our role as the largest employer in the north of Israel, supporting both the local economy and the broader defense industry,” Rafael CEO Yoav Turgeman said.

“Our success is not only about financial growth but also about creating opportunities for the local community and contributing to the rebuilding of the northern region.”

Rafael also inaugurated a new missile factory in Arkansas in partnership with the US defense contractor Raytheon.