IAI reports ‘most profitable period in history of aerospace industry’

Furthermore, the company noted it has the highest quarterly order backlog in its history, totaling about $15.8 billion compared to $13.4 billion at the end of last year.

Arrow 3 311 (photo credit: Courtesy)
Arrow 3 311
(photo credit: Courtesy)

Israeli aerospace manufacturer Israel Aerospace Industries (IAI) released its quarterly report for Q3 2022, reporting "The most profitable period in the history of the aerospace industry: net profit jumped by 54% to approximately $202 million."

Additionally, the company noted it has the highest quarterly order backlog in its history, totaling about $15.8 billion compared to $13.4 billion at the end of last year.

Furthermore, IAI reported a cash flow in the first nine months of 2022 of about $675 million, a 54% increase in net profit over the same period, from about $131 million last year to $202 million this year and an increase of about 135% in net profit from $31 million last year to about $73 million this year.

The company also reported 31% growth in EBITDA in the first nine months of 2022, from about $361 million in the same period last year to about $473 million. Additionally, the EBITDA in Q3 2022 grew from $109 million (about 10.5% of sales) last year to about $163 million (about 13.1% of sales).

Profit increase over the past year

Additionally, IAI reported an increase in operating profit from about $190 million (about 5.9% of sales) in the first nine months of last year to about $304 million (about 8.4% of sales) in the first nine months of 2022, as well as an increase in the operating profit from $52 million (about 5% of sales) in Q3 2021 to about $100 million (about 8.1% of sales) in Q3 2022.

Israel Aerospace Industries Chairman Amir Peretz (credit: ISRAEL AEROSPACE INDUSTRIES)Israel Aerospace Industries Chairman Amir Peretz (credit: ISRAEL AEROSPACE INDUSTRIES)

The company also reported an increase in gross profit from about $500 million (about 16% from sales) in the first nine months of last year to about $647 million (about 18% of sales) in the first nine months of 2022, as well as a 48% increase in gross profit from about $149 million (about 14% of sales) in Q3 2021 to about $220 million (about 18% of sales) in Q3 2022.

Finally, IAI reported a 12% increase in the volume of sales from about $3,205 million in the first nine months of last year to approximately $3,601 million in the first nine months of 2022, as well as an increase of approximately 19% in the company's sales from about $1,041 million in Q3 2021 to approximately $1,242 million in Q3 2022.

According to credit rating company Ma'alot S&P, IAI's rating increased this year from "stable to positive."

Israel Aerospace Industries CEO Boaz Levy (credit: ISRAEL AEROSPACE INDUSTRIES)Israel Aerospace Industries CEO Boaz Levy (credit: ISRAEL AEROSPACE INDUSTRIES)

“IAI presents another quarter with record performance in all parameters in the company's history in the first three quarters.”

IAI CEO Boaz Levy

"IAI presents another quarter with record performance in all parameters in the company's history in the first three quarters," said IAI CEO Boaz Levy. "This is the most profitable period in the company's history and we present a net profitability of $202 million, representing a 54% jump in performance. The significant increase in the company's profitability is due to the company's intensive and impressive activities in Israel and abroad, along with many business successes and collaborations in the world."

"The company continues its momentum in all lines of business," Levy added. "The company's performance in the first nine months of the year led to an increase in the company's credit rating in the third quarter, thereby contributing to the strengthening [of] its activity in front of the capital market and its preparation for an IPO in the coming period. In recent months, the aerospace industry has been awarded a number of strategic projects that constitute technological and operational breakthroughs, and illustrate the strength of the company as a global pioneer."

"The results of the financial reports that IAI presents today, the best in the company's history, indicate a significant breakthrough into new markets and the maintenance of existing markets around the world, the results prove that there is no intention of clinging to the results of the previous quarter and to continue efforts to increase the backlog of orders which are the infrastructure for the company's stability for years to come, said IAI Chairman Amir Peretz.

"The security instability around the world creates a demand for our systems that continue to prove themselves in front of all the competitors and therefore we continue our presence at all the exhibitions around the world, where we strengthen the existing one and build the infrastructure for the next destinations like last week, with our participation in the air exhibition in Bahrain where we presented to colleagues and other entrepreneurs from all over the world the capabilities of the aerospace industry, which it has been leading, expanding and improving for seventy years," he added.