Tel Aviv: Israel Aerospace Industries (IAI) has achieved excellent results in 2022. The company reported of a 44% growth in net income to approx. USD 213 million compared with net income of approx. USD 148 million in 2021. The positive cash flows from operating activities witnessed a substantial increase at approx. USD 797 million as opposed to approx. USD 146 million in 2021.
The growth in sales to approx. USD 4,973 million as compared to approx. USD 4,477 million in 2021 was on the higher side with leap in order backlog to approx. USD 15.6 billion, representing 3.1 years of operation, compared with approx. USD 13.4 billion at the end of 2021.
IAI witnessed 28% growth in annual EBITDA to approx. USD 560 million compared with approx. USD 436 million last year and the gross profit in 2022 increased by USD 128 million to approx. USD 824 million in 2022 compared with approx. USD 696 million in 2021. The annual operating profit at USD 316 million saw 46% growth and in-house R&D activity in 2022 increased 5% to approx. USD 215 million.
Commenting on the results, Amir Peretz, Chairman of the Board of Directors of IAI said, “Israel Aerospace Industries has this year achieved an all-time record both for new business and net profit, and above all, backlog, for the company’s systems, which both arouse considerable interest and demand around the world. This allows us to formulate work plans for the long-term, which are the basis of the company’s stability. Our achievements are due to IAI’s employees, men and women alike, who studiously apply themselves to develop the most advanced technologies for Israel’s defence establishment and for use by our many customers, as part of an ongoing examination of, and suitability to, the future battlefield. This includes, among other things, developing autonomous land platforms, defence and attack systems, cyber-based systems, artificial intelligence, and of course, other developments that defy the imagination and justify our position as Israel’s national space centre. The rapidly-changing international arena is constantly in our mind, a fact which obliges us to act quickly and within the guidelines set by the defence establishment.”
“IAI’s CEO, Boaz Levy, who combines technological expertise with worldwide marketing skills, is worthy of my appreciation, together with his Corporate Senior Management, and the Divisional General Managers – of the Aviation Group; Systems, Missiles & Space; ELTA Systems; and Military Aircraft, all of which have, in the past year, succeeded in reaching unprecedented results, whether in terms of technological innovation, financial achievements deriving from an increase in sales around the world, or due to their exceptional performance,” Peretz said.
He further remarked, “Since we have no intention of resting on our laurels, IAI’s Board of Directors has set and continues to set, ambitious goals, to fully support and advance the professional and business activities of IAI’s Groups, which represent the heart of the company’s activity. Israel’s Ministry of Defense, and the wide- ranging contacts we have with the entire defence establishment, continue to be an important factor in setting and implementing the company’s strategy, so that we can continue to supply the Israel Defense Forces (IDF) and Israel’s defence establishment with solutions for all threats and every challenge. Thanks to this close relationship we are able to strengthen existing markets, and open windows to new markets around the world. The company’s participation, for the first time in its history, in the important exhibition in Bahrain, and the demonstration and operation of unmanned maritime vessels, together with Abu Dhabi Ship Building, was an expression of how to leverage regional opportunities to expand our activities into additional markets.”
IAI’s President & CEO, Boaz Levy said, “We are again privileged and happy to summarize a year’s activities, an unprecedented year not only in terms of the business results achieved, but also due to reaching new peaks in both innovation and creativity: whether from advanced technological developments in the area of air, land-, and maritime- defence, through the successful launch of the C-EROS3, one of the world’s most advanced surveillance satellites, able to provide colour imagery; we conducted path breaking tests in Israel and elsewhere, of various systems, such as the Gabriel weapons system, POINT BLANK – an electro-optical missile able to be carried in a backpack by a single soldier, the Eitan Heron TP unmanned aerial system, strategic and tactical radars, and the most sophisticated intelligence systems of their type in the world; we have taken the world forward in civil aviation by leading aircraft conversion from passenger- to cargo-aircraft; we were awarded the Israel Defense Prize, and more. Developing advanced technological capabilities, to help preserve the IDF’s operational advantage and its ability to deal effectively with changing challenges, continues to lie at the center of our activities, and for that purpose we are increasing the resources dedicated to R&D. The company continues to achieve path breaking advances, in a wide range of fields, thanks to its workers and managers, who continue to be at the heart of our company’s qualitative advantage.”
The Company’s revenue of USD 4,973 million (approx.) in 2022 increased about 11% (approx. USD 496 million) as compared to revenue in 2021, mainly deriving from increased sales. The sales of the Military Groups in 2022 increased by about 6.2% to about USD 4,105 million compared with about USD 3,867 million in 2021, an increase of about USD 238 million. The sales of the Aviation Group in 2022 increased by about 17.4% to about USD 1,404 million compared with about USD 1,196 million in 2021, an increase of about USD 208 million.
Sales for export in 2022 totalled about USD 3,607 million (about 73%) and sales to the local market totalled about USD 1,366 million (about 27%), compared with about USD 3,219 million (about 72%) and about USD 1,258 million (about 28%) in 2021, respectively.
Net income in 2022 increased by 44% to about USD 213 million (about 4.3% of sales), compared with net income of about USD 148 million in 2021. Gross profit in 2022 amounted to about USD 824 million (about 17% of sales), compared with about USD 696 million in 2021 (about 16% of sales), an increase of about USD 128 million, mostly deriving from increased sales and profits of the Aviation Group and increased sales in the Systems Missiles & Space Group.
Operating profit in 2022 increased by about 46% to about USD 316 million (about 6.4% of sales), compared with operating profit of about USD 217 million in 2021 (about 4.8% of sales), an increase of about USD 99 million, mostly deriving from the increase in gross profit and partly offset by the increase in R&D expenses, general and administrative expenses and selling and marketing expenses compared to 2021.
