Jerusalem, 30 August, 2026 (TPS-IL) — Amid the ongoing war and rising global demand for air defense systems, Rafael Advanced Defense Systems saw a sharp increase in orders and sales. Its order backlog reached a record NIS 75.8 billion ($25.4 billion), prompting management to revive plans for a historic IPO.
Rafael reported a first-half net profit of NIS 663 million ($223 million), up 8% from the same period last year, or 28% in dollar terms. Second-quarter sales rose 20%, while new orders jumped 39%.
However, profit growth lagged behind sales. The company faces higher raw material costs, rapid hiring, and changes in its domestic and international sales mix.
The government and Defense Ministry also owe Rafael about NIS 7 billion ($2.35 billion), forcing the company to rely on expensive credit. The debt may be one reason the IPO has been delayed until after the October 27 elections, leaving the decision in the hands of the next government.