Israel Aerospace Industries (IAI) set a record profit margin for the third consecutive year, seeing the highest annual sales (about $4.5 billion) since the company began, a record annual income of $148 million and record growth of 10 percent to about $436 million, as well as an order backlog of about $13.4 billion.
Israel Aerospace Industries 2021 annual growth
The company saw a growth in sales to about $4.48 billion, compared to USD $4.18 billion in 2020; an 11% increase in net income to about $148 million, compared to a net income of about $133 million in 2020; 10% growth in annual EBITDA to about $436 million, compared to about $397 million in 2020; a $31 million increase in gross profit to about $696 million, compared to about $665 million in 2020; 11% growth in annual operating profit to about $217 million, compared to about 195 million in 2020; A 5% in R&D activity to about $1.08 billion, compared to about $1.04 billion in 2020; A leap in the order backlog to about $13.4 billion, compared to about $12.6 billion at the end of 2020; and free cash flow of about $905 million.
IAI Board of Directors Chairman Amir Peretz thanked the outgoing management for their contributions to the company's success:
"I would like to congratulate IAI on the great results and thank the outgoing Chairman, CEO, and management, and emphasize the contribution of all the company employees. When we say 'the people behind the numbers - it's not just a phrase. It is very much the hands and the minds that create the numbers. And the hands and minds, here at IAI, are exceptional.
"Despite the positive results, we have a long way to go, and we will strive to achieve results that will place us in line with the profits of other defense companies in Israel and around the world. An additional task ahead of us is the IPO - which is currently waiting for government approval. But until that happens, we will prepare so that as soon as we have the green light, we can set out and carry out the task as quickly as possible, while continuing to grow IAI, promote long-term company stability, and increase the scope of research and development."
IAI President and CEO Boaz Levy highlighted obstacles that the team overcame, as well as challenges currently facing the company:
"This is the third consecutive year of record profit at IAI. This past year, the company has deepened its business activities in new markets and strengthened its position as a global leader in providing advanced technological solutions.
"This is a challenging period across the world. Despite the business challenges that emerged from the COVID-19 pandemic, we maintained close relations with our partners worldwide and built new global collaborations. Yet the world is currently facing challenges that will have a long-term impact. At this time, the importance and necessity for advanced and operational air defense systems are rising, and we are working closely with our customers to deliver our products as quickly as possible.
"IAI is a security and economic anchor for the State of Israel, and a source of innovation and technological know-how for our customers across the world. During this period, the responsibility imposed on the company management and employees is doubled, changing according to global needs and the pandemic, and we will lead the company to more growth. Together, we have achieved IAI's most profitable year since its inception."