Israel Aerospace Industries (IAI)

Israel Aerospace Industries (IAI) is Israel's largest state-owned defense and aerospace company, reporting 2025 revenue of $7.38 billion and an order backlog that reached $35 billion by the second quarter of 2026. Founded in 1953 as Bedek Aviation Company, IAI builds satellites, missiles, drones, radar and civil-aviation systems, and co-developed the Arrow missile-defense family with Boeing and the U.S. Missile Defense Agency.

When Was IAI Founded and How Did It Grow?

IAI began in 1953 as Bedek Aviation Company, established under Ministry of Defense director general Shimon Peres with American-born aviation engineer Al Schwimmer as its founding president, according to Wikipedia's sourced company history. The company's maintenance unit grew from 70 employees to roughly 15,000 today across its Bedek Aviation, Commercial Aircraft, Military Aircraft, and Systems, Missiles and Space divisions. It formally took the name Israel Aerospace Industries in November 2006 to reflect a product line that had expanded well beyond aircraft into satellites, launchers, and maritime and ground systems.

What Is IAI's Current Financial Scale?

IAI's 2025 annual results were the most profitable in its history: sales rose 21% to $7.38 billion, net income jumped 45% to $712 million, and the order backlog climbed to roughly $29 billion by December 31, 2025, up from $25 billion a year earlier, according to the company's own annual financial statement. The growth accelerated into 2026: second-quarter sales rose 35% year over year to $2.18 billion, and the backlog reached a record $35 billion, Calcalist and Defence Industry Europe reported, with international customers now generating about 70% of orders.

Who Leads IAI Today?

In May 2026, Israel's government named then-CEO Boaz Levy as chairman of IAI's board, the first time a sitting CEO of an Israeli state-owned company also became its chairman, with the appointment signed by Defense Minister Israel Katz and Government Companies Authority head Dudi Amsalem, the Jerusalem Post reported. Moshe Levy, head of IAI's Military Aircraft Group, served as acting CEO during the transition. On July 21, 2026, IAI's board approved Brigadier General (Res.) Guy Barlev, who had led the Systems, Missiles and Space Group for six years, as the company's next CEO, pending government approval.

Is IAI Planning to Go Public?

Chairman Boaz Levy said in August 2026 that IAI's long-discussed initial public offering is "closer than ever," according to BigGo Finance, as the state-owned contractor's record backlog strengthens its position ahead of a planned partial privatization. Israel's October 27, 2026 election and the government-formation process that follows are expected to push any listing into 2027.

What Role Does IAI Play in the Arrow Missile-Defense Program?

IAI's MLM division has served as prime contractor for the Arrow missile-defense system since the program began after the 1991 Gulf War, jointly funded by IAI and the U.S. Missile Defense Agency with Boeing as the lead American industrial partner. Arrow 2 entered service in 2000 and Arrow 3, which engages threats outside the atmosphere, was declared operational in 2017; Arrow 3 recorded its first acknowledged combat intercept in November 2023 against a Houthi missile. In 2023, Germany signed a roughly €3.5 billion contract for Arrow 3, the largest defense export deal in Israeli history.

Related Olam Coverage

• IAI: The State-Owned Spine
• IAI and the Arrow That Paid Off
• The Order Backlog Index Q1 2026
• ELTA's AESA Radar Cohort
• Israel's Loitering Munitions Cohort

See also: MAFAT · Rafael Advanced Defense Systems · Elbit Systems · DECA · Iron Dome · Order Backlog · Offset Obligation · SIBAT