New Delhi: Israel Aerospace Industries (IAI) saw Q3 2024 as the most profitable period in its history with an order backlog of about US$ 25 billion which was the highest in the company’s history.
The company’s net income leaped by 74% to US$ 416 million with record high EBITDA and gross profit in Q3 2024.
“During this time, we have achieved unprecedented milestones with ground breaking projects in strategic markets across the globe. These achievements are not merely the result of technological and business success but a testament to our uncompromising commitment to excellence,” said Amir Peretz, Chairman of IAI who now lays down office after a three-year tenure.
There was a 74% increase in net income in the period of nine months ending September 30, 2024 to about US$ 416 million compared with about US$ 239 million in the corresponding period of 2023, the most profitable nine-month period in Company history.
EBITDA in Q3 2024 amounted to about US$ 195 million (about 12.7% of sales) compared with about US$ 158 million (about 11.9% of sales) in Q3 2023.
“It is with great satisfaction that I report on the three best years at Israel Aerospace Industries since company’s establishment. Building on outstanding performance in 2022 and 2023, today we conclude another three quarters of exceptional business activity,” Peretz said.
Peretz said he was proud to reflect upon his three years in office, years in which “we strengthened IAI’s position as a national and international leader in defence technology and civilian aviation. During this period, IAI achieved an unprecedented order pipeline valued at some $25 billion, with breakthrough projects in strategic markets worldwide.”
Peretz said the company launched innovation centres in the periphery, strengthened partnerships with local communities, and invested in technological education for the next generation, while expanding collaborations with leading academic and research institutions.
He said the company stood by its customers worldwide, expanded its range of markets, and broadened the portfolio of solution in over a hundred countries.
He said that the company had established IAI as a leading player in the global defence market, and provided vital diplomatic support for the State of Israel at a time when it is under attack and contending with boycott activities around the world.
“ I am proud to present our third quarter financial results, performance that reflects the growth and expansion of Israel Aerospace Industries, serving both Israel’s defence establishment and our diverse customers worldwide.
The unprecedented scope of our order book tangibly expresses IAI’s current capabilities and, equally important, our future potential,” said IAI’s President and CEO Boaz Levy.
He said the large-scale contracts the company signed with overseas customers illustrate the deep business relations it has cultivated and a recognition of Israel’s technological superiority.
“We have achieved this despite this period of national crisis, maintaining supply chain continuity and expanding our international relations,” Levy said.
The Company’s sales in the Reporting Period grew to about US$ 4,393 million compared with about US$ 3,873 million in the corresponding period of 2023, an increase of about 13%, deriving from increased sales in all the Company’s Groups and Divisions.
The sales of the Military Groups in the Reporting Period increased by about 14% to about US$ 3,720 million compared with about US$ 3,249 million in the corresponding period of 2023, an increase of US$ 471 million. The sales of the Aviation Group in the Reporting Period increased to about US$ 1,089 million compared with about US$ 1,026 million in the corresponding period of last year.
The Company’s sales in Q3 2024 amounted to about US$ 1,541 million compared with about US$ 1,333 million in Q3 2023, an increase of about 16%, deriving from the increased sales in the Systems Missiles & Space Group and the ELTA Group.
The sales of the Military Groups in Q3 2024 increased by about 17% to about US$ 1,307 million compared with about US$ 1,113 million in the corresponding quarter of last year. The sales of the Aviation Group in Q3 2024 amounted to about US$ 378 million compared with about US$ 351 million in the corresponding quarter of last year.
The sales for export in the Reporting Period accounted for about 65% of sales, totalling about US$ 2,870 million (about US$ 1,523 million, representing 35% of sales, to Israel), compared with about US$ 2,772 million (about US$ 1,101 million, representing 28% of sales, to Israel) in the corresponding period of 2023.
The sales for export in Q3 2024 accounted for about 62% of sales totalling about US$ 958 million (about US$ 583 million, representing 38% of sales, to Israel), compared with about 69%, totalling US$ 922 million (about US$ 411 million, representing 31% of sales, to Israel) in Q3 2023.
Gross profit in the Reporting Period amounted to about US$ 836 million (about 19% of sales), compared with about US$ 682 million (about 18% of sales) in the corresponding period of 2023. Gross profit in Q3 2024 amounted to about US$ 282 million (about 18% of sales), compared with about US$ 226 million (about 17% of sales) in Q3 2023.
The gross profit of the Military Groups in the Reporting Period increased by about 17% to about US$ 707 million compared with about US$ 605 million in the corresponding period of 2023. The gross profit of the Aviation Group in the Reporting Period increased to about US$ 108 million compared with about US$ 90 million in the corresponding period of last year. The gross profit of the Military Groups in Q3 2024 increased by about 23% to US$ 248 million compared with about US$ 201 million in the corresponding quarter of last year. The gross profit of the Aviation Group in Q3 2024 increased to about US$ 41 million compared with about US$ 30 million in the corresponding quarter of last year.
According to the company, the operating income in the Reporting Period amounted to about US$ 431 million (about 9.8% of sales), compared with operating income of about US$ 292 million in the corresponding period of 2023 (about 7.5% of sales). The operating income in Q3 2024 amounted to about US$ 121 million (about 7.9% of sales), compared with operating income of about US$ 87 million in Q3 2023 (about 6.5% of sales).
The operating income of the Military Groups in the Reporting Period was about US$ 367 million compared with about US$ 272 million in the corresponding period of last year. The operating income of the Aviation Group in the Reporting Period amounted to about US$ 49 million compared with operating income of about US$ 32 million in the corresponding period of last year. The operating income of the Military Groups in Q3 2024 amounted to about US$ 110 million compared with operating income of about US$ 87 million in the corresponding quarter of last year. The operating income of the Aviation Group in Q3 2024 amounted to about US$ 21 million compared with an operating income of about US$ 11 million in the corresponding quarter of last year.
The net income in the Reporting Period grew by 74% to about US$ 416 million (about 9.5% of sales), compared with net income of about US$ 239 million (about 6.2% of sales) in the corresponding period of 2023, the highest grossing nine-month period in the Company’s history.
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