The board of directors of Israel Aerospace Industries (IAI) yesterday decided to distribute a dividend of $242 million to the state coffers from the profits of 2024, a source has told “Globes.” The company will notify the Tel Aviv Stock Exchange (TASE) about this today.
In May, IAI distributed a dividend of NIS 1.6 billion to the state from its profits between 2017 and 2023. The major increase in IAI’s activities in recent years stems, among other things, from the effects of global geopolitical changes, such as the Russia-Ukraine war, as well as from the increased security needs in Israel and around the world, especially since the start of the war in October 2023..
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The higher activity is reflected in the company’s unprecedented order backlog. IAI’s financial report for 2024 showed that the company’s revenue increased by 15% to approximately $6.1 billion. Sales to the domestic market grew that year due to the war and stood at 34%. The order backlog amounted to about $25 billion, compared with about $18 billion at the end of 2023. Net profit in 2024 rose 55% to about $493 million, and EBITDA was $792 million.
Rafael and Tomer also performing well
At the same time, Rafael Advanced Defense Systems also approved a dividend distribution to the state of NIS 362 million on 2024 profits, while Tomer, which develops and manufactures rocket systems, is expected to pay the state a dividend of 50% of its total profits after years in which it paid only 10%, because it was a new company.
The Government Companies Authority is encouraged by the growth in dividend income to the state from government companies, especially in a year when it is unclear whether the budget will receive Knesset approval. The Authority has previously stated that the impressive business results of IAI are a gateway to fully privatizing the company. According to estimates, issuing 20-30% of IAI shares will bring the state’s coffers NIS 30 billion. This IPO was already approved in 2020 by the Ministerial Committee for Privatization, but the IPO was not promoted until recently.
Published by Globes, Israel business news – en.globes.co.il – on January 1, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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