Israel Aerospace Industries
State-owned defense + aerospace prime; Arrow ABM, Heron UAS, ELTA radars
IAILod, Israel~16,000Founded 1953State-owned (Government of Israel); IPO targeted Q2 2026 (25-30% float, ~$20B implied valuation) raisedwww.iai.co.il
SectorsDefense
Market Metrics
FY2025 Revenue
$7.38B
+21% YoY from $6.1B FY2024
FY2025 Net Income
$712M
+45% YoY
Order Backlog
$29B
Up from $25B end-2024
Employees
~16,000
100% Israeli government (pre-IPO)
Export Share
~66%
$4.88B of $7.38B FY2025 sales
Updated at 2026-Q1
Funding History
Total raised: State-owned (Government of Israel); IPO targeted Q2 2026 (25-30% float, ~$20B implied valuation)
| Round | Date | Amount | Valuation | Key Investors |
|---|
Updated at 2026-Q1
Product Specifications
| System | Type | Status |
|---|---|---|
| Arrow 3 | Exo-atmospheric ABM (with Boeing) | Operational (IDF, GAF) |
| Arrow 4 | Next-gen exo / hypersonic ABM | Live trials 2026 |
| Heron / Heron MK II | MALE UAS | Production (15+ countries; IAF new MK II squadron 2025) |
| Searcher / Bird-Eye | Tactical UAS | Production |
| Barak 8 / Barak MX | Air defense (with Rafael) | Production (India, Israel, Azerbaijan) |
| ELTA Radars | Air, ground, naval radar systems | Production |
| Ofek 13/16 | Imagery reconnaissance satellite | Operational |
| LORA | Short-range ballistic missile | Production (Azerbaijan, Greece) |
Updated at 2026-Q1
Partnerships & Investors
BoeingStrategic
Arrow 3 / Arrow 4 co-production for the US/Israel ABM program
Government of GermanyCustomer
~€4B Arrow 3 Sep 2023, expanded toward $6.5B; Arrow 4 in negotiation
Government of IndiaCustomer
Barak MX air defense, Heron MK II UAS
RafaelStrategic
Barak 8 + Iron Dome co-development
US Missile Defense AgencyCustomer
Arrow program co-funding; potential Golden Dome contributions
Updated at 2026-Q1
Key Milestones
1953
Bedek Aviation Founded
Origin of IAI as government aviation maintenance authority under Shimon Peres
1967
Renamed Israel Aircraft Industries
Expansion into design and manufacture
1979
Kfir Fighter Production
Indigenous Mirage 5 derivative for IAF and exports
1988
Ofek Satellite Program
First Israeli imagery reconnaissance satellite launched
2003
Renamed Israel Aerospace Industries
Reflects broader portfolio beyond aviation
2017
Arrow 3 Achieves IOC
Joint US/Israeli exo-atmospheric ABM operational
Sep 2023
€4B Germany Arrow 3 Deal
Largest single export contract in Israeli defense history
Apr 2024
First Iran Direct Attack
Arrow 2/3 + David's Sling intercept Iranian ballistic + cruise missiles; ~99% intercept rate
Oct 2024
Second Iran Direct Attack
Multi-layer defense (Arrow 3, Arrow 2, David's Sling, Iron Dome, C-Dome) employed
May 2025
Germany Targets Arrow 4
First international partner for next-gen exo-atmospheric / hypersonic interceptor
Jun 2025
Israel-Iran War
Arrow systems sustain large-scale Iranian missile defense
Dec 2025
Arrow 3 First Delivery to Germany
Holzdorf Air Base receives first batteries; full deal grows to ~$6.5B with expansion
Q2 2026
Targeted IPO
Israeli government to float 25-30% at ~$20B implied valuation
Updated at 2026-Q1