Another record-breaking year for Rafael Advanced Defense Systems

On Sunday, 29 March 2026, Israeli company Rafael Advanced Defense Systems announced its financial results for 2025, as approved by the Board of Directors.

Iron Dome / Photo: Rafael Advanced Defense Systems

Key developments in 2025:

• Sales reached 6.8 billion USD, surpassing the 6 billion threshold USD for the first time;
• The total value of new orders amounted to 10.4 billion USD, compared with 8.3 billion USD in 2024;
• The order backlog at year-end reached a record 23.3 billion USD, equivalent to 3.3 years of sales, with about half coming from export orders;
• Net profit exceeded 400 million USD for the first time, reaching 423 million USD;
• The fourth quarter of 2025 was Rafael’s best quarter in history, with sales of 2.2 billion USD and net profit of 134 million USD.

Dr. Yuval Steinitz, Chairman, said:

“We are publishing these results in the midst of a decisive war against an enemy that seeks our destruction. The past year and Operation Rising Lion in particular has once again underscored the critical importance of technological superiority to Israel’s security. Rafael’s advanced systems continued to play a central role in Israel’s most complex defense missions. In December, we delivered the high-energy laser system “IRON BEAM” to the Israeli Air Force a landmark achievement in innovative defense capability. Rafael remains a strategic asset to the Israeli economy through long-term investment in R&D and in strengthening local industry. These achievements are above all the result of the professional excellence, innovation, and deep sense of mission that define our people.”

CEO Yoav Tourgeman:

“2025 was a year of continued rapid growth, alongside intensive operational support to Israel’s defense establishment and rising demand from customers worldwide. Rafael is the largest and most central supplier to Israel’s defense establishment, and we work around the clock to provide the solutions required for intense combat and the protection of Israeli civilians. We significantly expanded our R&D investment and our development and production capacity. During the year, Rafael onboarded approximately 2,000 new employees, and set new records in both annual sales and Q4 performance, reflecting the deep trust placed in Rafael’s systems and capabilities.”

Key operational developments in 2025:

• During Operation Rising Lion in June, Rafael’s systems demonstrated outstanding effectiveness in both defensive and offensive missions.
• In May, Rafael’s laser systems recorded dozens of interceptions, marking a world first.
• In September, Rafael’s high-power laser system completed a full series of development tests and was formally delivered to the Israeli Air Force in December.
• Iron Dome and David’s Sling completed a successful series of tests against advanced threat profiles. The Ministry of Defense signed a multibillion-dollar contract with Rafael to expand Iron Dome serial production.
• Rafael introduced a new category of loitering munitions, L-Spike. Spike missiles are now used by more than 46 countries, with three more joining in 2025 (including the US Army’s Mounted Long-Range Precision Strike Missile program with Spike NLOS on wheeled vehicles, and Spike NLOS on Philippine AW159 Wildcat helicopters).
• Rafael and Kratos launched Prometheus Energetics, a USD 175 million joint venture focused on rocket motor production in the United States.
• Rafael and Raytheon opened a new Iron Dome interceptor production facility in Arkansas, United States.
• Trophy — the world’s only operational active protection system — was delivered to the German Army for Leopard tanks and will be integrated into K2 tanks under an agreement with Hyundai Rotem. Trophy APS is currently integrated on 16 platforms worldwide.
• The Litening 5 targeting pod was selected by the German parliament for Eurofighter Typhoon aircraft.
• Rafael opened a new R&D branch in Har Hotzvim, Jerusalem, and hired around 2,000 new employees at sites in Krayot, Gush Segev, Be’er Sheva, Shlomi, Tel Aviv, and Hadera.
• Rafael invests more than 8% of its annual revenue in research and development each year.
• Rafael received two Israel Security Prizes (the 62nd and 63rd) for exceptional technological and operational contributions during the war.

Press release

Rafael closes another record breaking year pic.twitter.com/BLQxnGcdCC

— Rafael Advanced Defense Systems (@RAFAELdefense) March 26, 2026