“Or Eitan” is approaching operationalization – and Rafael concludes a record year in sales

“As with the adoption of the F-35 in the Air Force and also the process of using the Iron Dome, it takes a certain amount of time for a system to become operational, but we are completely confident in the excellent capabilities of the system. It has already worked in the field and proven itself. The Air Force is building its operational capability as it knows how to do, and there is a reason that it is the best Air Force in the world.”

According to the report, the “Raphael” company registered a significant increase in revenues in the past year: 21.5% more than in 2024, for a total of NIS 21.7 billion ($6.94 billion according to the current exchange rate). The government company’s net profit in 2025 was NIS 1.35 billion, a jump of 42% compared to the profit in 2024. The company’s backlog of orders stands at a record amount of 74.4 billion shekels. 2025 was also defined as a “record year” in the company’s reports.

The company said that especially the fourth quarter of 2025 broke records in sales (7.1 billion shekels) and orders worth more than ten billion shekels. Close to half (46%) of the company’s sales in the entire year 2025 were to customers abroad. “Raphael is the largest and most central supplier of the defense system and we work around the clock 24/7, in order to provide the defense system with the solutions needed for intensified combat and the protection of the country’s citizens,” Turgeman said.

“The global customers will be satisfied”

The company reported that it expanded and began hiring about 2,000 new employees during 2025, which are added to about 10,000 employees in the company earlier, according to previous publications. Among the company’s developments that have proven themselves on the battlefield in the last month are the “Iron Dome” system and the “David Slingshot” system for intercepting rockets and missiles, which in 2025 underwent “a series of successful tests against advanced threats and features”, according to the company’s announcement. Several global customers announced the purchase of the systems. Regarding the use of the “David Slingshot” in the current campaign, Turgeman says that he cannot detail the data, but “when the global customers know what the situation is for confirmation – they will be very satisfied.”

Turgeman explained the increase in revenues partly due to the global growth in the defense market. “The world market has woken up and the countries realize that they need to invest more in security. They are looking for a more battle-proven, more high-quality military. In these two parameters – we are the most competitive there is. We have unique and advanced technologies and we strive not to be in the market of parallel products, but to offer products that others do not have at all. The market is growing and our market share is also growing.”

Turgeman said that the company does not refer to the latest reports regarding the conversion of the Volkswagen plant in Germany to produce components for the Iron Dome system. “Germany is a very central country for us. We have very good relations with companies and organizations and we also have local companies there and work very well with the local market. As part of doing business, we hold regular talks with companies. Some of them are ripe for deals and some are not. We for our part are careful not to publish things in the first stages, before signing.”

“The IPO is a real necessity”

Regarding the IPO that is being discussed these days (according to the reports to institutional bodies only), Turgeman says that “the IPO will not only be good, but it is a real necessity. It will allow us agility and flexibility that are required in the market, and as a government company – despite all the good will and flexibility – do not exist.” According to him, among the priorities for the allocation of the money that will be raised will be the purchase of companies, increasing production, investment in research and technology, as well as improving wages in a competitive manner. “I very much hope that it will come to fruition and am encouraged by the reports about it,” he said.

According to the company’s announcement, another product that contributed to record revenue this year was the SPIKE anti-tank roving missiles. As part of the company’s international collaborations, according to the announcement, Raphael and the American company Kratos launched Prometheus Energetics with an investment of 175 million dollars, to benefit the production of rocket engines in the USA.

In addition, Rafael and the Raytheon company inaugurated in Arkansas, USA, a new factory for the production of Tamir interceptors (for the Iron Dome system) with an investment of tens of millions of dollars. The “wind jacket” system – the only operational active defense system in the world – was delivered to the German army for the first time on top of the Leopard tank. Alongside this, as part of an agreement with the HUNDAI ROTEM company, it was agreed that the system would also be integrated into the Korean K2 tanks. Also in Germany, the army chose Rafael’s Litening 5 observation and guidance pods for the Eurofighter Typhoon aircraft – developed in European cooperation. The company said that it invests about 8% of its revenues in research and development, “which make it possible to develop the next generations of the systems and the technologies of the future”.