Rafael Superior Protection Programs experiences 20% development (45% in greenback phrases) in second quarter income to NIS 5.6 billion ($1.91 billion) and a 39% (68% in greenback phrases) bounce in new orders to NIS 6.9 billion ($2.3 billion). Speaking to “Globes”, Rafael CEO Yoav Tourgeman referred to as on Minister of Finance Bezalel Smotrich and Governor of the Financial institution of Israel Amir Yaron to intervene within the international alternate market.
“Within the first half yr, greater than 60% of the orders had been for export, a a lot larger proportion than within the corresponding interval,” Tourgeman explains. “Once we obtain orders in {dollars} and the shekel-dollar charge falls, or in euros and the euro charge falls, there’s an ideal deal much less in shekels, and the profitability of the offers diminishes. Furthermore, it does one thing else: it makes our bids dearer in greenback phrases, as a result of within the forthcoming ones I should have in mind a excessive conversion charge. That harms our competitiveness. It weighs on our industrialists, and that’s very dangerous information for the Israeli market. I hope that the finance minister and the governor will take it on themselves to take care of this matter in a extra vital manner than they’ve thus far. Anybody who needs a soundly primarily based industrial financial system should be sure that the alternate charge fluctuates inside an inexpensive vary and doesn’t get uncontrolled.”
Tourgeman factors out that inside a yr the shekel-dollar alternate charge has fallen from 3.67/$ to beneath $3/$, and says that Israeli business can’t maintain this. “State intervention is required. It was required previously, and now much more so,” he says.
Within the second quarter of 2026, the warfare with Iran meant that Israel accounted for 56% of Rafael’s gross sales, adopted by Europe (22%), Asia (16%), and America (5%).
Gross sales within the first half of 2026 totaled NIS 10.6 billion ($3.57 billion), representing development of 13.6% in shekel phrases and 35% in greenback phrases compared with the primary half of 2025. Yr-on-year, the orders backlog grew by 33% to NIS 75.8 billion ($25.47 billion).
Rafael’s web revenue for the primary half of 2026 was NIS 663 million ($222.8 million), 8% larger than within the first half of 2025 (28% larger in greenback phrases). This came about throughout a interval wherein the state’s debt to the protection corporations grew to unprecedented proportions. “Rafael is a really sturdy firm with the best credit standing within the nation, so the banks are joyful to lend,” Tourgeman says. “However, credit score prices cash, and that exhibits up within the revenue line. Does it hurt efficiency? Sure.”
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What do prospects search for in Rafael?
“The aerial protection market with all its layers is a principal concern all over the world. Because the entity accountable for nearly 100% of Israel air defenses, Rafael is a distinguished participant. The Spyder take care of Romania is the most important in Rafael’s historical past, and I presume that there can be extra prefer it, and never simply in Europe, however throughout. Europe is topic to the best tensions, and has the widest hole between wants and capabilities. I subsequently estimate that along with the flexibility to pay will come giant demand and plenty of offers. We’re additionally seeing substantial development in floor, maritime, air, and intelligence methods, a energetic market with excessive regard for our merchandise.”
Tourgeman says that the rising respect for Rafael’s merchandise is bolstered by their spectacular efficiency within the marketing campaign towards Iran, which demonstrated their top quality. “We’re a provider that provides on time, and as a way to meet schedules we elevated output by 55% compared with the corresponding interval. That’s greater than startups handle. We did it by means of enchancment alongside the entire worth chain: mechanization, automation, the availability chain, manufacturing flooring. Whenever you have a look at the issues on this planet, there’s problem in assembly demand, and sure corporations say ‘it’s going to take years extra’. So prospects come to us to decide on high-quality gear, inexpensive, and on a brief timetable.”
Rafael chairperson Yuval Steinitz repeated his name for the corporate to be floated on the inventory alternate, particularly within the gentle of its efficiency. “The achievements of our enterprise are doubly spectacular in a interval wherein the corporate is working in a posh safety surroundings and in a aggressive and dynamic world market,” he mentioned.
“Wanting forward,” he continued, “the additional strengthening of Rafael as a number one protection firm necessitates the variation of its development infrastructures to the challenges of the approaching years, together with a change in its standing by means of an providing of shares that can allow it to broaden funding in breakthrough applied sciences, deepen its worldwide exercise, retain the most effective brains and keep its scientific and operational benefit, whereas safeguarding the safety pursuits of the State of Israel,” Steinitz mentioned.
Printed by Globes, Israel enterprise information – en.globes.co.il – on August 31, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
