Rafael Advanced Defense Systems, a government-owned defense company in Israel, has reported record earnings and order backlog for the second quarter and the first half of 2023, thanks to the high demand for its air defense systems and other weapon systems.
One of the major deals that contributed to Rafael’s growth was the agreement with the Finnish Ministry of Defense for the sale of the David’s Sling defense system, amounting to approximately 312 million euros. This marks the first time that David Sling’s has been sold outside of Israel, taking place against the backdrop of the ongoing Russia-Ukraine conflict that has spurred unprecedented demand for weapons, particularly in Europe.
According to a report by La Tribune financial newspaper, Saudi Arabia is also considering acquiring 100 to 200 Dassault Rafale fighters from France, which would be a break from its long history of buying US and British jets. This suggests that Riyadh is not satisfied with the reliability and availability of its traditional partners, especially after the US lawmakers proposed legislation freezing all American arms sales to the kingdom in October 2022.
Rafael’s sales increased by 28% in the first half of 2023
Rafael’s sales in the second quarter of this year reached NIS 3.14 billion (approximately $830 million), surging by approximately 29% compared to the corresponding quarter of 2022, according to the earning reports of the government-owned defense company. The backdrop for this growth is the significant global demand for weapon systems.
During the first half of the year, the company’s sales increased by 28% in comparison to the first half of 2022, totaling around NIS 6.11 billion ($1.61 billion). Over this period, it received new orders worth more than NIS 10.6 billion ($2.79 billion), marking a 36% increase compared to the first half of 2022. This robust influx of orders has propelled Rafael to its largest ever order backlog, which stands at over NIS 41 billion ($10.81 billion).
Rafael reported a net profit of NIS 111 million ($29.2 million) in the second quarter, contrasting with a loss of NIS 159 million ($41.8 million) in the corresponding quarter due to a special tax on retained profits from previous years amounting to some $128 million.
Rafael’s products include air defense systems, missiles, and drones
Rafael is one of the leading defense companies in Israel, specializing in developing and producing advanced weapon systems for air, land, sea, and space domains. Some of its products include:
- David’s Sling: A medium-range air defense system that can intercept ballistic missiles, cruise missiles, aircraft, and drones. It is jointly developed by Rafael and Raytheon.
- Iron Dome: A short-range air defense system that can intercept rockets, artillery shells, mortars, and drones. It is also jointly developed by Rafael and Raytheon.
- Spike: A family of anti-tank guided missiles that can be launched from various platforms such as helicopters, vehicles, ships, and infantry.
- Python: A family of air-to-air missiles that can engage targets at short and medium ranges.
- Derby: A beyond-visual-range air-to-air missile that can be integrated with various fighter jets.
- Protector: A family of unmanned surface vehicles that can perform various missions such as patrol, surveillance, mine countermeasures, anti-submarine warfare, and anti-ship warfare.
