Business brief
Defense Profit-Taking Clashes with Aviation and Tech Ambition
Fidelity dumps NextVision and Falklands friction hits Navitas, while El Al approaches the TA-35 and Elbit expands African exports.
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Fidelity cashed out a 170% profit by offloading ₪1.3 billion in NextVision stock — triggering a sharp correction despite the defense camera maker's packed order backlog.
BackgroundNextVision produces stabilized camera gimbals deployed on commercial drones and loitering munitions, experiencing massive revenue growth during recent conflicts. Fidelity acquired its initial stake in early 2025 at ₪85 per share, securing a 170% capital gain prior to the divestment.
- Company chairperson Chen Golan reiterated that operating fundamentals remain intact, pointing to packed order backlogs extending into 2027 that preserve manufacturing visibility.
- The institutional share sale followed ₪1.1 billion in insider sales by company founders over preceding quarters, intensifying market concerns about valuation peaks.
- Despite the single-day selloff, equity analysts expect NextVision to sustain 70% gross margins as surging international defense exports outpace domestic procurement demand.
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El Al reached a record ₪11.5 billion valuation on dominant route capacity — setting up mandatory index buying as it prepares to enter the blue-chip TA-35.
BackgroundForeign airlines repeatedly suspended flights to Ben Gurion Airport throughout the regional conflict, handing El Al near-monopolistic pricing power on Mediterranean and transatlantic routes. The carrier generated more than $1 billion in net profits since October 2023, lifting its stock 450%.
- Passenger demand surged further after security incidents on foreign airlines prompted Israeli travelers to prioritize domestic carriers, cementing premium seat yields.
- The Shin Bet approved the resumption of direct Israeli flights to Dubai, restoring lucrative business corridors across the Gulf after a six-month security hiatus.
- Automatic inclusion in the TA-35 will trigger mandatory passive institutional buying across domestic exchange-traded funds and pension accounts, locking up significant free float.
Business
Elbit is leading Israel's defense export delegation to Morocco — expanding Abraham Accords defense sales as global militaries seek battle-tested autonomous systems.
BackgroundBilateral security cooperation between Israel and Morocco deepened rapidly following the 2020 Abraham Accords, leading to major procurement agreements for air defense and border monitoring systems. Global demand for combat-proven electronic warfare and autonomous systems surged over the past two years.
- State-owned defense primes IAI and Rafael are joining Elbit to mount joint defense exhibitions, projecting unified Israeli aerospace capabilities across North African military delegations.
- Elbit's PULS artillery systems have gained significant traction among international armed forces seeking modular rocket launch capabilities that integrate with existing NATO rocket ammunition.
- The corporate marketing push aims to cement long-term procurement contracts across Mediterranean and African security partners, diversifying commercial backlog away from domestic defense ministry cycles.
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