IAI logs record H1 profits

20th August 2021 - 12:15 GMT | by The Shephard News Team

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The Arrow 4 interceptor is among the weapon systems IAI worked on in H1 2021. (Photo: IAI)

Sales growth from military customers was offset by a slump in demand from commercial aviation.

Israel Aerospace Industries (IAI) claims to have achieved the most profitable half year and financial quarter in its history, with a 22% leap in net profits for H1 2021 and a 21% increase in Q2 2021.

H1 revenues of $2.16 billion (4.1% higher than in H1 2020) generated net income of approximately $100 million, the Israeli defence and aerospace group announced on 17 August.

‘The growth in sales was primarily due to the increased sales in the Systems Missiles & Space Group, partly offset by reduced sales in the Aviation Group,’ IAI stated.

Military business accounted for $1.89 billion of H1 sales (a 10.6% year-on-year increase), while the Aviation Group in IAI saw sales fall by $566 million.

Exports reached 72% ($1.56 billion) of overall sales in H1 2021 – the same percentage as H1 2020.

Notably, in-house R&D spending at IAI in H1 2021 rose by 20% year on year to about $85 million.