Rafael Advanced Defense Systems CEO Yoav Tourgeman says that the Iron Beam laser interception system is still in the process of becoming operational in the Israel Air Force. He added that he is “Confident that the public will be favorably impressed by its performance in the near future.”
Tourgeman spoke to “Globes” following publication of the government-owned company’s annual report, which shows a record year in all commercial parameters. On Iron Beam he said that the system developed by the company has already been supplied in an “advanced version” to the Air Force, which is currently working on its full use.
“As with the F-35’s integration into the Air Force and the process of using Iron Dome, it takes a certain amount of time for a system to become operational, but we are completely confident in the system’s excellent capabilities. 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 it is the best air force in the world.”
In terms of financial results, Rafael reported revenue of NIS 21.7 billion ($6.94 billion at the current exchange rate) in 2025, up 21.5% from 2024. Net profit in 2025 was NIS 1.35 billion, up 42% jump from 2024. The company’s order backlog is a record NIS 74.4 billion. Nearly half (46%) of the company’s sales in all of 2025 were to customers abroad.
Tourgeman said, “Rafael is the largest and most central supplier for the Ministry of Defense and we are working around the clock 24/7, in order to provide the defense system with the solutions needed for the intense fighting and the protection of the citizens of the country.”
Global customers will be satisfied
The company reported that it has expanded and hired about 2,000 new employees during 2025, adding to the 10,000 employees it already had, according to previous reports. Among the company’s developments that have proven themselves on the battlefield in the past month are the Iron Dome short range air defense system and the David’s Sling medium range air defense system for intercepting rockets and missiles, which in 2025 underwent “a series of successful tests against advanced threats and designs,” according to the company’s announcement.
Several global customers have announced their procurement of the systems. Regarding the use of David’s Sling in the current campaign, Tourgeman says that he cannot provide details, but “When global customers know what the situation is, they will be very satisfied.”
Tourgeman explained the rise in revenue, among other things, by the global growth in the defense market. “The global market has awakened and countries understand that they need to invest more in defense. They are looking for more proven, more high-quality weapons. In both of these parameters, we are the most competitive there is. We have unique and advanced technologies and we strive not to be in a market of parallel products, but to offer products that others do not have at all. The market is growing and our share in the market is also growing.”
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Tourgeman declined to comment on the recent reports about the conversion of a Volkswagen plant in Germany to produce components for Iron Dome. “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 our business, we hold ongoing talks with companies. Some of them are ripe for deals and some are not. For our part, we are careful not to publish things in the early stages, before signing.”
“The IPO is a real necessity”
On the IPO currently being discussed (according to reportedy to institutional bodies only), Tourgeman says, “The IPO will not only be good, but it is a real necessity. It will allow us the agility and flexibility that are required in the market, and as a government company – despite all the goodwill and flexibility – do not exist.” He said among the priorities for allocating the money to be raised will be the acquisition of companies, increasing production, investing in research and technology, and 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 last year was SPIKE anti-tank missiles. As part of the company’s international collaborations, Rafael and US company Kratos Defense launched Prometheus Energetics with an investment of $175 million, for the production of rocket engines in the US.
Rafael and Raytheon also inaugurated a new plant in Arkansas, US for production of missile launchers (for the Iron Dome system) with an investment of tens of millions of dollars. The Trophy system, the only operational active tank defense system in the world, was first delivered to the German army on the Leopard tank. In addition, as part of an agreement with Hyundai Rotem, it was agreed that the system will also be integrated into Korea’s K2 tanks. Also in Germany, the army selected Rafael’s Litening 5 surveillance and guidance pod for the Eurofighter Typhoon aircraft, which is being developed through a European collaboration. The company said that it invests about 8% of its revenue in R&D, “which allows for the development of the next generations of systems and future technologies.”
Published by Globes, Israel business news – en.globes.co.il – on March 29, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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