Israel Aerospace Industries sees 49% increase in net income in 2023

Israel Aerospace Industries revealed on Wednesday that its net income increased 49% to about $318 million in 2023.

IAI, which provides technologies in space, air, land, naval, cyber, and homeland defense, saw sales increase to about $5.3 billion in 2023, compared with about $4.9 billion in 2022.

Its gross profit in 2023 rose by $143 million to about $967m, compared with about $824m in 2022.

“The mobilization of our employees for wide-ranging and intense work in support of Israel’s defense establishment, and not least, our activities for our foreign clients, have brought about groundbreaking results in what has been a challenging year,” explained IAI CEO Boaz Levy. “The considerable increase in [research and development] is noteworthy, and its results can be seen daily, even during the current Swords of Iron conflict.”

Increased sales

Indeed, sales to military groups increased by 9.4% in 2023 to approximately $4.5 billion, compared to about $4.1 billion in 2022, an increase of $384 million.

Amir Peretz, former head of the Labor Party and chairman of the IAI board of directors, said he is “proud to be heading Israel’s largest government-owned defense company, which faced unexpected challenges in 2023.

“The international changes that affected our ability to conduct business in a normal way in areas where stability was undermined, and in addition, the fighting in Israel, forced us to adjust the company’s policy,” he said. The company worked round the clock to meet the IDF’s operational requirements and supply all the needed munitions. New systems that were in the final stages of development, including different autonomous systems, were deployed operationally.

“Despite the difficulties of the situation, we maintained the upward trend of the company’s business results,” he concluded, “and 2023 ended as our best year since the establishment of IAI in all its business parameters.”