Business brief
State Defense Giants and Local Airlines Drive Israeli Corporate Growth
Record defense order backlogs and reduced airport competition fuel strong earnings and upcoming listings for major Israeli enterprises.
Business
Surging global missile orders cleared the path for Israel's largest flotation — bringing state defense giant IAI to public markets at a $27 billion valuation.
BackgroundIAI produces the Arrow missile defense system and advanced radar platforms, benefiting from surging global military procurement. Government ministers are preparing to sell a 20% to 30% stake to public investors in Israel's largest flotation.
- Order backlog reached a record $28 billion, driven by over $1 billion in quarterly sales from its Missiles and Space Division.
- The government plans a primary listing on TASE with a potential dual listing on Nasdaq pending final regulatory approvals.
- Management declared the state defense contractor fully IPO-ready as international demand for combat-proven air defense systems surges across Europe and Asia.
Business
Surging drone threats are driving 14-fold top-line growth for Ondas — though aggressive R&D and stock compensation continue to delay net profits.
BackgroundOndas develops automated drone security platforms and counter-drone systems for military and critical infrastructure protection. The company has aggressively expanded operations through strategic acquisitions and dual-headquarter R&D.
- Full-year revenue guidance was boosted to $550 million following surge orders for perimeter defense technology across allied security agencies.
- Quarterly operating expenses reached $199 million due to rapid engineering hiring and stock compensation, deepening immediate operating losses.
- Dual operations in Tel Aviv and the US position the firm to capture both American defense spending and Middle Eastern military orders.
Business
Reduced foreign flight competition created an accidental monopoly — driving record earnings and a 31% stock surge for El Al.
BackgroundInternational carriers reduced flights to Tel Aviv during regional conflict, leaving El Al with an outsized market share. High load factors have allowed the airline to maintain strong pricing power across major routes.
- El Al equity posted strong momentum on TASE as passenger volumes through Ben Gurion Airport remained heavily concentrated on local carriers.
- Higher ticket yields offset longer flight times required to bypass restricted regional airspaces, keeping profit margins near historical highs.
- Market analysts expect robust financial performance to persist until major European and US airlines fully restore pre-war flight schedules to Tel Aviv.
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