A record in new orders amounting to about 30 billion NIS and a net profit of 588 million NIS

Rafael Advanced Defense Systems Ltd. publishes on March 27 its financial results for 2023, as approved by the company’s board of directors:

• A 21% increase in the volume of the company’s sales, which amounted to NIS 14,043 million, compared to NIS 11,586 million in 2022.
• An 85% increase in the volume of orders received by the company in 2023 – NIS 29,864 million compared to NIS 16,104 million in 2022.
• An unprecedented backlog of orders amounting to 52,416 million NIS, a 47% increase compared to the backlog of 2022 (35,636 billion NIS) which is 3.6 years of sales.
• Net profit of 588 million NIS, an increase of 17% compared to the net profit in 2022.
• Gross profit of 2,928 million NIS, an increase of 19% compared to the corresponding year.

As mentioned above, Rafael’s order backlog reached an all-time high, with a 47% increase over 2022 – 52.416 million NIS – driven by orders from both domestic and international markets. The volume of orders in 2023 increased by approximately 85%, totaling 29.864 million NIS, with 57% of the orders coming from international customers (17.072 million NIS) and the remaining 43% from Israel (12.792 million NIS).

The fourth quarter of 2023 was exceptional in terms of activity, with Rafael receiving orders totaling 14.514 million NIS, with over 61% of these orders being international, following the completion of large export deals. Sales volume in the fourth quarter stood at 4.594 million NIS, a 19% increase compared to the corresponding quarter last year. Rafael notes a slight decrease in the gross profit margin compared to 2022 due to fluctuations during the “Swords of Iron War.”

Rafael Chairman, Dr. Yuval Steinitz: “We conclude 2023 as a record-breaking year in professional and business activity at Rafael. In its vision and mission, Rafael functions as a significant pillar in the security of the State of Israel. This year this vision was practically brought to fruition with some of the most advanced technological and operational breakthroughs. Even before the “Swords of Iron War”, whose effects on the company’s reports will be seen mainly in 2024, Rafael realized important opportunities in various countries in the world with huge deals such as the historic sale of the “David’s Sling” to Finland, the sale of Spike missiles to Greece, and more. I would like to take this opportunity to thank, on behalf of myself and the board of directors, the outgoing CEO of Rafael, Maj. Gen. Yoav Har-Even, for 8 years of leadership and significant work in the company. On behalf of the board of directors and the management, I would of course like to thank the Rafael employees and their families for their dedication and professionalism.”

Rafael CEO, Yoav Tourgeman: “Alongside our extensive life-saving activity in Israel, Rafael continues to operate globally with a diverse product portfolio, maintaining economic strength and commercial resilience. Rafael makes a crucial contribution to the IDF and the entire security establishment, with a wide range of advanced capabilities and systems resulting from significant investments in research and development. Above all, we rely on a high-quality human resource base, enabling us to meet the challenges and goals ahead. We expect to bring onboard approximately 2,000 new employees this year. While Rafael faces a challenging year in terms of performance and deliveries, I am confident that our proven operational experience, combined with cutting-edge innovation and excellent market positioning globally, will enable us to continue delivering the most significant value proposition to our customers.”