Israel Aerospace Industries

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Israel's largest state-owned aerospace and arms company (defence industry): maker of the Arrow missile-defence system, Heron and Harop drones and Ofek spy satellites

Israel Aerospace Industries

Trade name Israel Aerospace Industries Ltd. (IAI)
Type Wholly owned government company
Founded 1953 (as Bedek Aviation)
Founder(s) Al Schwimmer
Headquarters Ben-Gurion Airport, Lod, Israel
Industry Aerospace and defence (defence industry)
Parent State of Israel
Subsidiaries ELTA Systems (merger into IAI approved July 2026)
Revenue US$7.38 billion (2025)[1]
Number of employees About 13,800 (end of 2022)[2]
Homepage iai.co.il

Israel Aerospace Industries (IAI) is Israel's largest aerospace and arms company, owned by the state as a "wholly-owned government company" under Israeli law.[3][4] It makes the Arrow missile-defence interceptors, the Heron family of drones, the Harop loitering munition and Israel's Ofek reconnaissance satellites.[5][6]

In 2025 its revenue was $7.38 billion and its net income a record $712 million; 66% of revenue came from exports.[1] Its weapons have been used in Gaza and, through exports, by Azerbaijan in the conflict over Nagorno-Karabakh. Human rights groups and campaigners have criticised it over these uses.[7][8]

History

IAI says it "was established in 1953 in Lod, Israel, as BEDEK Aviation Ltd." It became Israel Aircraft Industries Ltd. in 1966 and Israel Aerospace Industries Ltd. in 2007.[9] The company was established by the American-born aircraft engineer Al Schwimmer, who had smuggled aircraft to Israel for its 1948 war. In 1951 he accepted Prime Minister David Ben-Gurion's invitation to move to Israel. The Los Angeles Times reported that he guided the company "from an initial focus on repairing and maintaining aircraft for the Israeli air force to producing military and commercial planes".[10] In the mid-1980s Schwimmer was a special adviser on technology and industry to Prime Minister Shimon Peres. In that role, according to the Jewish Telegraphic Agency, he became an intermediary in the attempt to trade American and Israeli weapons to Iran for US hostages held in Lebanon, which became the Iran-Contra affair.[11]

Ownership

IAI's 2025 financial statements describe it as a "wholly-owned government company" under the Government Companies Law, 1975. Its debentures have been listed on the Tel Aviv Stock Exchange since May 2007, but its shares are not listed. Under the policy of the Government Companies Authority, 50% of annual net income is paid to the state as a dividend.[4]

On 19 November 2020 the Ministerial Privatization Committee approved selling up to 49% of the company's shares to the public on the Tel Aviv Stock Exchange.[4] In July 2026 Ctech described the company as preparing for "a planned IPO".[12] In August 2026 chairman Boaz Levy said the IPO was "closer than ever".[13]

Leadership

Boaz Levy has been chief executive since 2020. In May 2026, after the board elected him, he was also appointed chairman; the appointment letter was signed by Defence Minister Israel Katz and David Amsalem, the minister responsible for the Government Companies Authority. The Jerusalem Post reported that this was "the first time a serving chief executive of an Israeli government-owned company has also been named chairman of the same company". It said Levy joined IAI in 1990 as an engineer on the Arrow programme and later led the Barak programme and the air-defence systems division.[14]

Moshe Levy, head of the Military Aircraft Group, then became acting chief executive. In July 2026 the board chose Guy Bar Lev, head of the Systems, Missiles and Space Systems Division, as the next chief executive, subject to ministerial approval. Ctech reported that Bar Lev had been deputy commander of the Israel Defense Forces' Judea and Samaria Division, which covers the occupied West Bank. He retired from the army in 2015 as a brigadier general.[12] By August 2026 he was acting president and chief executive.[13]

Structure

IAI operates through four groups: the Missiles and Space Systems Group, the Military Aircraft Group, the Military Electronics Group and the Aviation Group. The Military Electronics Group works through ELTA Systems Ltd, a wholly owned subsidiary.[4] In July 2026 the Israeli government approved merging ELTA into IAI, with ELTA kept as a brand and internal division.[15] Israel's State Comptroller reported that at the end of 2022 IAI had about 13,800 employees, 5,100 suppliers and 46 held companies, 26 of them overseas.[2]

Products

Missile defence: Arrow and Barak

According to the Israel Ministry of Defense, the Arrow 3 system "is jointly developed and produced by the IMOD’s DDR&D and the U.S. Missile Defense Agency (MDA)". IAI "serves as the prime contractor for developing the system's radar, interceptors, and detection systems". Elbit Systems developed the command-and-control system, and Tomer and RAFAEL Advanced Defense Systems are key subcontractors.[5]

The Barak 8 (MRSAM) and Barak LR (LRSAM) air- and missile-defence systems were developed jointly by IAI and India's state-owned Defence Research and Development Organisation (DRDO).[16]

Drones

IAI makes the Heron family of drones. Human Rights Watch described the Heron as one of "Israel's primary armed drones", alongside Elbit Systems' Hermes.[7] Al Jazeera described the Heron TP "Eitan" as Israel's largest drone: it "can fly up to 40 hours continuously and can carry four Spike missiles".[3] In a profile written with Corporate Watch, Privacy International said that IAI "makes no mention of the drone’s weapons capability". It said documents leaked by Edward Snowden "revealed images that appear to show Heron TPs carrying missiles for the Israeli Air Force".[17]

Human Rights Watch describes the Harop as a loitering munition "developed by Israel Aerospace Industries": a "so-called 'suicide drone'" that "loiters in the air for a period searching for a target, which it attacks once detected".[8]

Satellites and space

IAI built both the Ofek 19 reconnaissance satellite and its Shavit launcher, which were launched on 2 September 2025. The satellite carries a payload made by ELTA. The Israel Ministry of Defense said Ofek satellites have been launched since 1988, and that command of Ofek 19 would pass to Unit 9900, "the IDF’s visual and geospatial intelligence unit".[6]

Finances

Ynetnews reported that IAI's 2025 revenue rose 21% to $7.38 billion and its net income rose 45% to $712 million. Military sales were $6.4 billion, and the order backlog was nearly $29 billion, about 71% of it from foreign customers.[1] By the end of June 2026 the backlog had reached $35 billion.[13]

Exports and controversial sales

India

In April 2017 IAI agreed deals with India worth nearly $2 billion. In a statement quoted by The Diplomat, IAI called its contract to supply MRSAM systems to the Indian Army, worth more than $1.6 billion, "the largest defense contract in Israel’s Defense Industries’ history".[16]

Germany

On 3 December 2025 the Israel Ministry of Defense handed over the first operational Arrow 3 system to Germany. It called the contract "the largest defense export deal in Israel's history".[5] In January 2026, The Jerusalem Post reported, Germany and IAI signed a $3.1 billion expansion of the $3.5 billion original contract, bringing the total to more than $6.5 billion.[18]

Germany had leased Heron TP drones from Israel since 2018. Deutsche Welle reported that after October 2023 two of them were handed to the Israeli military "in solidarity with Israel", and that "Observers fear they are being used in the war in Gaza and in Lebanon".[19]

Azerbaijan

Human Rights Watch reported that in the conflict over Nagorno-Karabakh "Azerbaijan government forces used various loitering munitions, such as the Harop developed by Israel Aerospace Industries".[8] Jewish Insider also reported that Azerbaijan used Harop "suicide drones" in the 2020 conflict.[20]

European border policing

Privacy International reported that IAI shares in a two-year, €184 million framework contract signed in late 2024 with the EU border agency Frontex. The work is subcontracted to IAI by Airbus, and Leonardo is the other beneficiary. It also reported that activists from the Gaza Freedom Flotilla said the Greek coastguard used a Heron drone to harass the Madleen and Handala in summer 2025.[17]

Use in Gaza

In a 2009 report on Israeli drone strikes during the 2008–09 Gaza offensive, Human Rights Watch documented six strikes that "killed 29 civilians, eight of them children". It named the Heron, "produced by Israeli Aerospace Industries", as one of Israel's two main armed drones. It said both the Hermes and the Heron "have devices that record everything viewed by the drone operator" and called on Israel to release the footage.[7]

Al Jazeera reported, citing Drone Wars UK, that the Heron TP "Eitan" "was first used during 'Operation Cast Lead' in the 2008-09 Gaza war for attacks against civilians". It said that after the war IAI saw "a surge in orders of Heron variant drones from at least 10 countries between 2008-2011".[3] Privacy International reported that the Heron 1 "has been reportedly heavily employed in the ongoing war on Gaza" and carried out reconnaissance after the attack of 7 October 2023.[17]

Boycott and divestment

The Danish pension fund ATP lists "Israel Aerospace Industries Ltd" on its investment exclusion list, giving the reason as "Cluster weapons" and the year as 2019. ATP's exclusions apply to both listed shares and corporate bonds.[21]

UK Register of Overseas Entities

Israel Aerospace Industries Ltd. is registered on the UK Companies House Register of Overseas Entities as OE029632, registered on 5 May 2023; see Israel Aerospace Industries Ltd. (Register of Overseas Entities) for the register entry.[22] UK land and property: HM Land Registry (OCOD, Oct 2026) lists 1 title(s) in England and Wales under this proprietor name or number: Fourth Floor Premises, 60 St James's Street, London (SW1A 1LE) (leasehold, title BB5527, added 14-04-2020).[23]

See also

External links

Notes

  1. ↑ 1.0 1.1 1.2 ynet Global, IAI profit jumps 45% in 2025 as global demand for defense systems soars Ynetnews, 11 March 2026, accessed 21 October 2026.
  2. ↑ 2.0 2.1 State Comptroller of Israel, Prevention of Fraud and Embezzlement at Israel Aerospace Industries Ltd. Report of the State Comptroller of Israel, May 2024, accessed 21 October 2026.
  3. ↑ 3.0 3.1 3.2 Paddy Dowling, Dirty secret of Israel’s weapons exports: They’re tested on Palestinians Al Jazeera, 17 November 2023, accessed 21 October 2026.
  4. ↑ 4.0 4.1 4.2 4.3 Israel Aerospace Industries, Consolidated Financial Statements as of December 31, 2025 Israel Aerospace Industries, 2026, accessed 21 October 2026.
  5. ↑ 5.0 5.1 5.2 Israel Ministry of Defense, Historic milestone: Arrow 3 system handover marks new chapter in Israeli-German defense partnership Israel Ministry of Defense, 3 December 2025, accessed 21 October 2026.
  6. ↑ 6.0 6.1 Israel Ministry of Defense, Israel MOD and IAI Successfully Launch Ofek 19 Satellite, Entering its Orbit in Space Israel Ministry of Defense, 3 September 2025, accessed 21 October 2026.
  7. ↑ 7.0 7.1 7.2 Human Rights Watch, Precisely Wrong: Gaza Civilians Killed by Israeli Drone-Launched Missiles Human Rights Watch, 30 June 2009, accessed 21 October 2026.
  8. ↑ 8.0 8.1 8.2 Human Rights Watch, International Committee of the Red Cross Backs Killer Robot Ban Human Rights Watch, 13 May 2021, accessed 21 October 2026.
  9. ↑ Israel Aerospace Industries, Sustainability Report 2017 Israel Aerospace Industries, accessed 21 October 2026.
  10. ↑ Elaine Woo, Obituary: Al Schwimmer dies at 94; founder of Israel's aerospace industry Los Angeles Times, 15 June 2011, accessed 21 October 2026.
  11. ↑ Tom Tugend, Al Schwimmer, father of Israel’s Air Force, dies Jewish Telegraphic Agency, 12 June 2011, accessed 21 October 2026.
  12. ↑ 12.0 12.1 Yuval Azulay, Arrow maker IAI selects missile division chief Guy Bar Lev as next CEO Ctech, 21 July 2026, accessed 21 October 2026.
  13. ↑ 13.0 13.1 13.2 Mandi Kogosowski, IAI Posts Record First-Half Results as Sales and Profits Surge Israel Defense, 19 August 2026, accessed 21 October 2026.
  14. ↑ The Media Line staff, Israel names IAI CEO Boaz Levy Chairman in first for state-owned defense company The Jerusalem Post, 16 May 2026, accessed 21 October 2026.
  15. ↑ TV10 Israel, IAI absorbs Elta Systems. Menorah executives hit with ₪183M asset freeze. Leumi Partners acquires 20% of Delek Israel. TV10 Israel, 7 July 2026, accessed 21 October 2026.
  16. ↑ 16.0 16.1 Franz-Stefan Gady, India, Israel Conclude $2 Billion Missile Deal The Diplomat, 11 April 2017, accessed 21 October 2026.
  17. ↑ 17.0 17.1 17.2 Privacy International, Dual-use tech: the Israel Aerospace Industries (IAI) example Privacy International, 10 November 2025, accessed 21 October 2026.
  18. ↑ Yonah Jeremy Bob, Germany signs $3.1b deal with Israel to expand Arrow 3 missile defense system The Jerusalem Post, 11 January 2026, accessed 21 October 2026.
  19. ↑ Ben Knight, Israel may be using German-leased Heron war drones Deutsche Welle, 4 October 2024, accessed 21 October 2026.
  20. ↑ Marc Rod, Nagorno-Karabakh conflict highlights Israel’s strategic role in region Jewish Insider, 12 November 2020, accessed 21 October 2026.
  21. ↑ ATP, Exclusions 2026 ATP, accessed 21 October 2026.
  22. ↑ Companies House, ISRAEL AEROSPACE INDUSTRIES LTD. overview Find and update company information (GOV.UK), accessed 21 October 2026.
  23. ↑ HM Land Registry, Overseas companies that own property in England and Wales (OCOD), October 2026 file HM Land Registry Use land and property data.
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