From War to Wall Street? IAI Considers IPO Amid Global Weapons Demand
Israel's largest aerospace firm eyes an IPO following record profits from ongoing war-driven demand. IAI's sales surged, boosted by defense needs, pioneering innovations like unmanned bulldozers and missile defenses
Israel’s largest aerospace company is preparing for a potential IPO as profits soar amid 16 months of war.
Israel Aerospace Industries (IAI) released its latest financials last week, revealing that if it moves forward with an IPO of up to 50%, it could benefit its 15,000 employees and inject much-needed cash into Israel’s economy at a time of rising deficits.
“We need to go for an IPO,” IAI CEO Boaz Levy said. “I believe that the government of Israel understands this. I cannot tell you when it will happen, but in general, I believe it will happen.”
2024 was the most profitable year in IAI’s history, with the company’s backlog reaching approximately $25 billion—$7 billion more than the previous year. Sales rose to about $6.1 billion, up from $5.3 billion in 2023. The increase came from Israel’s Ministry of Defense to support the war effort and international sales. The company maintained a steady split, with 20% of its sales domestic and 80% abroad.
IAI’s net income also surged, growing by 55% to approximately $493 million in 2024, compared to $318 million the previous year.
Despite these record-breaking numbers, IAI CFO Eran Anchikovsky believes the company has “untapped potential” and that an IPO “will help us move from big jumps to giant leaps.” However, he noted that the government must make the final decision on whether to sell.
The company is worth a lot of money, and the country needs money now. I don’t want to say to cash in because it’s a war, but it’s an opportunity… There’s no better time than the present.
“The company is worth a lot of money, and the country needs money now,” Anchikovsky added. “I don’t want to say to cash in because it’s a war, but it’s an opportunity… There’s no better time than the present.”
Levy said that throughout the war, which began on October 7 when Hamas entered Israel and slaughtered 1,200 people, IAI has been working around the clock. Its departments have been operating 24/7 to supply the weapons needed for the current war and fulfill external sales commitments. He emphasized that IAI remains committed to maintaining its sales ratio between domestic and international markets. This means that if Israel needed more, the company sought additional customers abroad to balance production.
Finding those customers wasn’t tricky, Levy admitted.
Every leader in the world these days knows that he needs to protect his population from future wars. Wars are no longer fought on the frontiers. They are taking place in cities, with civilians directly involved. That’s why we see a growing demand for defense systems worldwide.
“Every leader in the world these days knows that he needs to protect his population from future wars,” Levy told The Media Line during a semi-private briefing on Thursday. “Wars are no longer fought on the frontiers. They are taking place in cities, with civilians directly involved. That’s why we see a growing demand for defense systems worldwide.”
He noted that weapons sales to Europe have surged, not due to political trends but rather because of real and immediate security threats.
IAI’s workforce reflects its high-tech nature. Levy said about 50% of the company’s employees are engineers, with 2,500 holding advanced science, technology, and engineering degrees. This positions IAI not just as a defense contractor but as a pioneer in cutting-edge technology.
“Some of the challenges we faced in this war, as well as the threats we anticipate in the future, are directly tied to these technological capabilities,” Levy said.
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Despite being a government-owned company, IAI consistently ranks as one of the best places to work. Levy credited this to the company’s supportive environment and the sense of purpose employees feel. He said people want to work at IAI because they know that what they do directly protects their homes and country.
Levy shared an image of a soldier standing beside one of IAI’s unmanned aerial vehicles (UAVs). The UAV, he explained, was designed and produced by IAI, and one of the employees who helped develop it was later called up for army reserve duty—where he was able to operate the very technology he helped create.
This is the story of IAI, and this is the story of Israel.
“This is the story of IAI, and this is the story of Israel,” Levy said.
He recalled that IAI opened its gates at 10 a.m. on October 7 and immediately began mobilizing for the war effort. More than 520 days later, production continues—even as around 2,000 employees have been called up to serve in the reserves.
“We made two decisions on October 7,” Levy said. “The first was that we would work as much as necessary to defend our country and support all military operations in Israel. The second was that we would continue working at full capacity for our international customers. And we did it.”
Technology that saves lives
During the war, IAI achieved a major milestone when the IDF deployed its unmanned D9 bulldozer in combat for the first time. This marked a significant moment in military history, as no other country had ever used ground robotics at this scale in battle.
The D9, a massive 50-ton bulldozer, was adapted by IAI’s Elta Systems division to operate autonomously. Designed for complex and prolonged engineering tasks, it can function without a human operator on board and is controlled remotely from anywhere in the world.

D9 (Israel Aerospace Industries)
The system, equipped with advanced technology, can handle various tasks, including land excavation, clearing paths through rough terrain, removing obstacles, constructing defensive barriers, preparing tank-firing positions, and demolishing buildings. It can also identify and navigate obstacles in any weather or visibility conditions, keeping soldiers out of harm’s way.
The development of this technology has been ongoing for more than a decade and is part of a broader range of robotic solutions.
Levy emphasized its advantages, explaining that an autonomous vehicle can operate around the clock without needing food, rest, or supplies. “You can push it to the limit without endangering soldiers’ lives,” he said. “And most importantly, it will save lives.”
He pointed out that the army could deploy the unmanned D9 ahead of troops in high-risk missions, reducing the danger to soldiers.
“You are working with a machine. It’s a fundamental shift in the philosophy of war,” Levy said. “We see autonomous vehicles playing a major role in future conflicts. While some may imagine fully autonomous warfare, I believe the future will involve a combination of advanced robotics and human soldiers working together.”
IAI is also the force behind the Arrow missile defense system, which Levy helped develop 35 years ago when he first joined the company. It was his first project as a young engineer.
On April 14, 2024, Israel faced a large-scale attack from Iran involving ballistic missiles, drones, and cruise missiles. Levy described the assault as well-synchronized and said the rockets carried massive warheads. However, “we were prepared.”
“The Arrow weapons system was there,” Levy said. That night, Israel deployed two types of interceptors—Arrow Two and Arrow Three. “Those interceptors actually did the job and countered this attack.”
The system was put to the test again in October when Iran launched a similar attack.
The Arrow system’s origins date back to the late US President Ronald Reagan, who asked the question: Can you hit a bullet with a bullet? IAI believed it was possible and set out to develop a solution, which resulted in the creation of the Arrow defense system.
We learned a lot from that attack on Israel, and we are looking forward to the future as well.
“Thirty-five years later, I’m standing here as CEO, very proud of that design we created back then. Today, it is fully operational,” Levy said. “We learned a lot from that attack on Israel, and we are looking forward to the future as well.”
He emphasized that just as technology developed decades ago is now countering modern threats, IAI must design today’s systems with future challenges in mind.
Levy noted that the battlefield is evolving, and modern warfare is now a “war of allies.” Success depends on seamless connectivity and synchronization between forces.
“Command and control will require vast amounts of data from multiple sources—space, air, land, and sea,” he explained. “That information must be processed in real-time and sent to each unit according to its needs, ensuring full coordination.”
When I say synchronization, I don’t mean just within your forces. It includes your allies’ forces as well.
But coordination doesn’t stop at a nation’s own military. “When I say synchronization, I don’t mean just within your forces. It includes your allies’ forces as well.”
Levy stressed that a single nation no longer fights wars in isolation. “Your allies must be built into your solution… That’s what we are doing today.”
As IAI continues to push the boundaries of defense technology, it is preparing for a future where warfare is smarter, faster, and fought together.