Beit Shemesh Engines, which manufactures aircraft engine parts, reported Sunday its largest deal ever: a subsidiary of Beit Shemesh Engines, Carmel Forgings, signed a contract worth $1.2 billion to supply parts to one of its strategic customers — considered one of the world’s leading engine manufacturers. This is the largest contract in Beit Shemesh Engines’ history and will run for at least 15 years.
The agreement includes an option to extend the relationship between the two companies for an additional five years, increasing the value by a further $400 million.
Beit Shemesh Engines is controlled by the FIMI fund of Yishai Davidi and is managed by Ram Drori. The company did not disclose the customer’s name and said the current deal expands an agreement signed with that customer in 2019. The new contract includes understandings on the development and manufacture of new parts for two engine programs led by the international company.
The new agreement increases Beit Shemesh Engines’ framework agreements by about 50%, from $2.1 billion to $3.3 billion.
“This is the largest framework agreement in the history of the Beit Shemesh Engines Group and it strengthens its business and technological positioning in the parts-sector and constitutes a significant anchor to bolster its standing in the market as a strategic supplier,” Drori said.
Drori added that the new deal will allow the company “to prepare optimally with the production means, infrastructure and resources required to maximize its operational efficiency for many years to come.”
Beit Shemesh Engines focuses on producing parts for jet engines via machining, manufacturing precision castings and forging metal parts. It also performs overhaul, assembly and engineering of engine parts and components alongside development and production of jet engines for the defense and civilian markets.
Recovery in the civil aviation market since the COVID pandemic and the sharp rise in demand for defense products due to the wars in Ukraine and Israel have benefited Beit Shemesh Engines’ performance, which is traded on the Tel Aviv Stock Exchange with a market value of 6.2 billion shekels ($1.847 billion).
In Q2 2025 the company reported revenues up 24% compared with Q2 last year, reaching a record $77 million. Last month FIMI sold 8.8% of its shares in Beit Shemesh Engines for 500 million shekels, reducing its holding to just 17%.