Rafael Advanced Defense Systems reported strong first-quarter results, underscoring the continued boom among Israeli defense companies, with net profit rising to 334 million shekels, up about 23% from the same quarter last year.
The company received 8.15 billion shekels in new orders during the first quarter, an increase of about 28% from the corresponding period last year. Its order backlog now totals 76.4 billion shekels, or $24 billion, up 23% year-on-year.
Rafael’s sales reached about 5 billion shekels in the quarter, a rise of about 7% from the same period last year. For the first time, exports accounted for 63% of total sales, without affecting sales to the IDF.
The company’s strong results come alongside a growing payment dispute with the Defense Ministry. According to Rafael CEO Yoav Turgeman, the ministry’s debt to Rafael for equipment it has purchased but not yet paid for has reached nearly 7 billion shekels.
“The State of Israel’s debt to us has reached an all-time high,” Turgeman said in response to the reports. “It is not a badge of honor for the State of Israel that it does not pay on time, and I hope the Finance Ministry will soon decide when the funds will be transferred for payment. The debt, together with the decline in the shekel value of the dollar and the euro, is causing us discomfort.”
Turgeman said the growth in sales did not stem from “mega-deals,” but from a large number of medium-sized deals across several fields, led by the Trophy active protection system and Rafael’s Spike missiles, which are in high demand among foreign armies.
The company continues to expand both sales and headcount. Rafael hired another 500 employees in the first quarter and now employs 11,000 people.
Asked about the Iron Beam laser defense system, which according to reports is not yet operational, Turgeman said: “This is a powerful system designed to be part of the Iron Dome defense system. Its role is to provide protection for an entire area. It does not move with a single jeep inside Lebanon.”
“The system we delivered is intended for long-range defense, and the Defense Ministry is in the process of significant procurement,” he added. “Soldiers moving in the field need better protection, a compact system that moves with the force. There are several sizes of Iron Beam. There is a tactical system mounted on a combat vehicle; the IDF ordered it and is now procuring it.”
Turgeman said Rafael has additional solutions in the pipeline, including kinetic interceptors in very advanced development. He described them as small, cheap and available, saying they would provide an answer to all types of drones, including fiber-optic drones.
Rafael chairman Prof. Yuval Steinitz said the company continues to benefit from strong momentum at the start of 2026.
“Rafael faces significant challenges and growing competition in the global market, and we must continue to stand at the forefront of the world’s most advanced defense industry in scientific and technological terms, and serve as the largest supplier to the IDF and the defense establishment,” he said.