Rafael Advanced Defense Systems
Israel's state-owned defense prime, maker of Iron Dome, the Spike missile family, Trophy active-protection and Iron Beam. Became a government corporation in 2002; renamed 2007. Record 2025 results: $6.8 billion sales, $10.4 billion new orders, $23.3 billion backlog, $423 million net profit. CEO Yoav Tourgeman. A planned 25-30% TASE listing remains contested as of mid-2026 over security and Treasury objections.
Rafael Advanced Defense Systems is Israel's state-owned developer of the Iron Dome interceptor, the Spike missile family, and the Trophy active-protection system. The company reported record 2025 sales of $6.8 billion, $10.4 billion in new orders, and a $23.3 billion order backlog, and is the subject of an ongoing but contested government plan to float 25-30% of its shares on the Tel Aviv Stock Exchange.
When Was Rafael Founded and How Did It Become a Corporation?
Rafael traces to 1948, when it began as part of Israel's Science Corps, the new state's national armament research authority. It later operated as Rafael Armament Development Authority before becoming a government corporation in 2002 and taking its current name, Rafael Advanced Defense Systems, in October 2007.
How Big Is Rafael's Business Today?
Rafael's 2025 sales reached $6.8 billion, crossing the $6 billion mark for the first time and up from $4.9 billion in 2024, with 46% of sales to international customers, according to the company's own year-end results. New orders totaled $10.4 billion, up from $8.3 billion the year before, pushing the order backlog to a record $23.3 billion, equivalent to about 3.3 years of sales and roughly half from export orders. Net profit exceeded $400 million for the first time, reaching $423 million, up from $260 million in 2024. CEO Yoav Tourgeman, appointed in December 2023 after previously leading Elta Systems, called 2025 "a year of continued rapid growth" alongside "intensive operational support" to Israel's defense establishment.
What Is the Status of Rafael's Planned IPO?
Israel's government has planned since 2025 to float 25-30% of Rafael on the Tel Aviv Stock Exchange, with Hebrew-press reports valuing the company at roughly $10 billion. As of July 2026, however, the Defense Ministry's security chief had reopened a review of the listing over concerns about Rafael's highly classified operations, Calcalist reported, while Treasury opposition to a fast-track listing had frozen the company's dividend payments since June 2026, reflecting unresolved tension within the government over how to privatize a company that handles some of Israel's most sensitive military programs.
What Products Define Rafael's Business?
Rafael's best-known system is Iron Dome, developed with U.S. backing to intercept short-range rockets. Its Spike missile family extended into a roughly €2 billion deal with Germany in 2025, structured through a joint venture in which Rafael holds a 20% stake. The company's Trophy active-protection system defends armored vehicles against anti-tank threats, while Iron Beam, delivered to the Israeli Air Force in 2025, is described as the first operational high-power laser interception system. Rafael also co-developed the David's Sling mid-tier interceptor with Raytheon.
Why Does Rafael Matter Beyond Its Own Balance Sheet?
Rafael's products are the ones most associated globally with Israeli defense capability, and its export deals, and the licensing decisions behind them, are recurring drivers of the country's defense-trade headlines and diplomatic relationships.
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- The Order Backlog Index Q1 2026
See also: Iron Dome · MAFAT · Israel Aerospace Industries · Elbit Systems · DECA · Order Backlog · SIBAT · Defense Export License