Rafael Superior Protection Programs studies 20% progress (45% in greenback phrases) in second quarter income to NIS 5.6 billion ($1.91 billion) and a 39% (68% in greenback phrases) soar in new orders to NIS 6.9 billion ($2.3 billion). Speaking to “Globes”, Rafael CEO Yoav Tourgeman known as on Minister of Finance Bezalel Smotrich and Governor of the Financial institution of Israel Amir Yaron to intervene within the overseas trade market.
“Within the first half 12 months, greater than 60% of the orders have been for export, a a lot larger proportion than within the corresponding interval,” Tourgeman explains. “After we obtain orders in {dollars} and the shekel-dollar charge falls, or in euros and the euro charge falls, there’s a terrific deal much less in shekels, and the profitability of the offers diminishes. Furthermore, it does one thing else: it makes our bids dearer in greenback phrases, as a result of within the forthcoming ones I should keep in mind a excessive conversion charge. That harms our competitiveness. It weighs on our industrialists, and that’s very dangerous information for the Israeli market. I hope that the finance minister and the governor will take it on themselves to take care of this matter in a extra vital approach than they’ve to this point. Anybody who desires a soundly based mostly industrial economic system should be certain that the trade charge fluctuates inside an inexpensive vary and doesn’t get uncontrolled.”
Tourgeman factors out that inside a 12 months the shekel-dollar trade charge has fallen from 3.67/$ to underneath $3/$, and says that Israeli trade can not maintain this. “State intervention is required. It was required up to now, and now much more so,” he says.
Within the second quarter of 2026, the conflict with Iran meant that Israel accounted for 56% of Rafael’s gross sales, adopted by Europe (22%), Asia (16%), and America (5%).
Gross sales within the first half of 2026 totaled NIS 10.6 billion ($3.57 billion), representing progress of 13.6% in shekel phrases and 35% in greenback phrases compared with the primary half of 2025. Yr-on-year, the orders backlog grew by 33% to NIS 75.8 billion ($25.47 billion).
Rafael’s internet revenue for the primary half of 2026 was NIS 663 million ($222.8 million), 8% larger than within the first half of 2025 (28% larger in greenback phrases). This happened throughout a interval wherein the state’s debt to the protection firms grew to unprecedented proportions. “Rafael is a really sturdy firm with the best credit standing within the nation, so the banks are completely satisfied to lend,” Tourgeman says. “Nonetheless, credit score prices cash, and that exhibits up within the revenue line. Does it hurt efficiency? Sure.”
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What do clients search for in Rafael?
“The aerial protection market with all its layers is a predominant concern around the globe. Because the entity chargeable for virtually 100% of Israel air defenses, Rafael is a outstanding participant. The Spyder take care of Romania is the largest in Rafael’s historical past, and I presume that there shall be extra prefer it, and never simply in Europe, however throughout. Europe is topic to the best tensions, and has the widest hole between wants and capabilities. I due to this fact estimate that along with the power to pay will come massive demand and plenty of offers. We’re additionally seeing substantial progress in floor, maritime, air, and intelligence programs, a energetic market with excessive regard for our merchandise.”
Tourgeman says that the rising respect for Rafael’s merchandise is bolstered by their spectacular efficiency within the marketing campaign in opposition to Iran, which demonstrated their prime quality. “We’re a provider that provides on time, and to be able to meet schedules we elevated output by 55% compared with the corresponding interval. That’s greater than startups handle. We did it by means of enchancment alongside the entire worth chain: mechanization, automation, the provision chain, manufacturing flooring. If you take a look at the issues on the planet, there’s issue in assembly demand, and sure firms say ‘it would take years extra’. So clients come to us to decide on high-quality gear, cheaper, and on a brief timetable.”
Rafael chairperson Yuval Steinitz repeated his name for the corporate to be floated on the inventory trade, particularly within the gentle of its efficiency. “The achievements of our enterprise are doubly spectacular in a interval wherein the corporate is working in a fancy safety atmosphere and in a aggressive and dynamic international market,” he stated.
“Trying forward,” he continued, “the additional strengthening of Rafael as a number one protection firm necessitates the difference of its progress infrastructures to the challenges of the approaching years, together with a change in its standing by means of an providing of shares that may allow it to increase funding in breakthrough applied sciences, deepen its worldwide exercise, retain one of the best brains and keep its scientific and operational benefit, whereas safeguarding the safety pursuits of the State of Israel,” Steinitz stated.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on August 31, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
