Record results for IAI, but its biggest client isn't paying for the Arrow
IAI's backlog hit $35B and profits jumped 47%, but a Ministry-Treasury dispute created a NIS 2.4B negative cash flow. Chairman Levy warns of debt.
Israel Aerospace Industries (IAI) has reported record-breaking results in its latest financial quarter. The company's order backlog has reached an all-time high of $35 billion, a 35% increase from the previous year. Net profit rose by 47% to $229 million, with sales growing by 35% to $2.189 billion. However, the company is facing a significant issue as its biggest client, the Defense Ministry, is not paying due to a dispute over the defense budget.
This has led to a negative cash flow of $795 million, a stark contrast to the positive $170 million cash flow seen the previous quarter. IAI has limited cash reserves of $4 billion, which could potentially force it to take on loans if it doesn't receive timely payments. Despite the financial strain, IAI's Chairman, Boaz Levy, remains confident about the company's future.
He stated that the business results demonstrate Israel's and its allies' qualitative edge in defense and offense. IAI is also actively investing in research and development of advanced technologies to respond to current and future threats. The company is set to go public, but the exact timing is still under debate. IAI is also expanding its capabilities in the Arrow missile system, which has global demand, especially after Israel's recent success in the war. The company is also venturing into space, an emerging field with growing global demand.
Written by urgent.news from Jerusalem Post Tech & Start-Ups's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
