Israel Aerospace Industries posts record $449M profit, IPO closer than ever

Israel Aerospace Industries, the country’s largest state-owned defense and aerospace firm, reported a net income of approximately $712 million, a 45% jump compared to the prior year, on revenue of $7.38 billion, which grew 21% year over year.

Those numbers land at a moment when global defense spending is surging, order books are swelling, and the Israeli government is actively exploring selling a minority stake in the company. IAI is positioning itself for a public market debut that could value it somewhere between $22 billion and $27 billion.

The numbers behind the momentum

IAI’s order backlog now exceeds $28 billion. For context, that backlog represents nearly four years of revenue at current run rates.

IAI operates across several segments including military aircraft, missiles, space systems, and commercial aviation. The company builds the Arrow missile defense system, produces satellites, and manufactures aerostructures for commercial aircraft.

The IPO question

Discussions about partially privatizing IAI have been circulating since at least 2020. The Israeli government has committed to selling a 25-30% minority stake.

CEO Boaz Levy has stated that the company is ready for an IPO, with the remaining variable being final government approval. IAI already trades publicly issued bonds and files regular financial disclosures.

A government delegation visited the US in July 2026 to explore listing options, with a potential Nasdaq listing or dual listing on the table.

The estimated valuation range of NIS 80-100 billion, roughly $22-27 billion, would make IAI one of the larger defense IPOs in recent memory.

The risk factors are worth noting. Defense IPOs carry unique complications, from export control restrictions that limit what can be disclosed to investors, to geopolitical risks that can swing sentiment overnight. And any IPO ultimately depends on government approval, a variable that can shift with political winds regardless of how strong the financials look.

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