Israel Aerospace Industries marks profitability and growth for 12th consecutive quarter

This was the most profitable period in company history – 17% growth in net income throughout the past three fiscal quarters

Israel Aerospace Industries marks profitability and growth for  12th consecutive quarter

Boaz Levy, IAI President and CEO (Credit: IAI)

Israel aerospace Industries (IAI) enjoyed a 17% increase in the period of nine months which ended on September 30, 2021 to approx. USD 131 million, compared with approx. USD 112 million in the corresponding period of 2020 – the most profitable period in company history. Net income increased to approx. USD 31 million in Q3 2021 compared with approx. USD 30 million in Q3 2020.

Gross profit: 7.5% increase in gross profit in the reporting period to approx. USD 500 million (approx. 15.6% of sales) compared with approx. USD 465 million (approx. 15.1% of sales) in the corresponding period of last year. Increase of 13% in gross profit in Q3 2021 to approx. USD 149 million (approx. 14.3% of sales) compared with approx. USD 132 million (approx. 13.1% of sales) in Q3 2020.

As far as sales, the company boasts a  3.9% increase in sales to approx. USD 3,205 million in the reporting period, compared with approx. USD 3,084 million in the corresponding period of 2020 – the highest sales in the period ever recorded in company history.

The growth in sales mainly derives from the increased sales in the Systems Missiles & Space Group and the Military Aircraft Group, partly offset by reduced sales in the ELTA Group. Increase in sales in Q3 2021 to approx. USD 1,041 million compared with approx. USD 1,006 million in Q3 2020.

The report also indicates an increase in inhouse R&D expenses in the reporting period to approx. USD 127 million compared with approx. USD 117 million in the corresponding period of 2020. Inhouse R&D expenses in Q3 2021 amounted to approx. USD 42 million compared with approx. USD 46 million in Q3 2020.

“This is the most profitable quarter in company history and we are recording a net income of USD 131 million, leading to a 17% growth in net income. The significant growth in income is thanks to the company's significant operations in Israel and abroad, together with commercial success and cooperation around the world,” said Boaz Levy, IAI’s CEO and President.

“Among the highlights of the third quarter, IAI was selected by Israel's Ministry of Defense to develop and manufacture the ‘Carmel’ project for the Israel Defense Forces, which emphasizes IAI's strength in the land domain. In addition, IAI was selected to provide the Estonian Defense Forces with advanced anti-ship missile systems, and to provide radars to the German Bundeswehr. IAI also signed a cooperation agreement with SixAI to convert defense technology for the civilian market,” added Levy.

“Last week, for the first time, IAI participated in the Dubai Airshow 2021, held in the UAE. This was an historic event that illustrates IAI's capabilities and the vast potential in investing in the Gulf countries. During the exhibition, IAI signed a number of business collaboration agreements with leading commercial aviation and defense companies in the region."

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