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Israel Aerospace Industries Ltd.

Israel Aerospace Industries is a state-owned defense contractor with $4.7B revenue, led by Boaz Levy, supplying aircraft, missiles, and satellites...

Israel Aerospace Industries Ltd.

IAI was founded in 1953 by the State of Israel as a maintenance shop for the Israeli Air Force and has evolved into a global aerospace and defense conglomerate. Boaz Levy, a 30-year veteran of the company, took over as CEO in 2020, succeeding Nimrod Sheffer. The firm remains wholly state-owned, operating under the Ministry of Defense's supervision. IAI's strategy spans aviation, missile systems, satellites, and intelligence technologies. The firm develops the Arrow anti-ballistic missile system with Boeing, manufactures the Heron and Harop unmanned aerial vehicles, and builds communications and observation satellites such as the Ofek series. Key aircraft programs include the Tzukit trainer jet and upgrades for the F-16 and F-35. IAI exports to over 50 countries, including India, the United States, and several European nations. Revenue in 2023 was approximately $4.7B per public filings, with an order backlog of over $15B. The firm employs roughly 15,000 people, predominantly in Israel. It maintains a philanthropic arm, the IAI Foundation, which focuses on STEM education in marginalized communities. IAI's structural differentiator is its dual role as both a national defense prime contractor and a commercial exporter, operating under government ownership but competing globally. This model gives it unique access to Israeli intelligence and technology while imposing export controls and dividend obligations to the state.

Website
iai.co.il

General information

Firm type

other

Year founded

1953

AUM

Undisclosed

Location

Region

Middle East

Country

Israel

City

Tel Aviv-Yafo

Corporate office

Eshel St, Tel Aviv-Yafo, Lod, Israel

Principals

Boaz Levy

CEO

Shimon Eckhaus

Chairman

Sector focus

Aerospace & DefenseIndustrial TechSpaceTech

Frequently asked questions

Who runs investment decisions at Israel Aerospace Industries?

Investment decisions are made by the CEO Boaz Levy and the board, chaired by Shimon Eckhaus, under the oversight of the Ministry of Defense. As a state-owned enterprise, major capital expenditures require government approval.

Does IAI participate in joint ventures with other defense firms?

Yes, IAI has a historic joint venture with Boeing for the Arrow missile system and collaborates with other global primes on satellite and radar programs. These are typically structured as co-development or production-sharing agreements.

What is IAI's dividend policy to the Israeli government?

IAI pays dividends to the state based on profitability, typically distributing 30-50% of net income. In 2022, it paid approximately $150M in dividends per public reports.

Is IAI involved in commercial aviation or only military?

The firm is primarily military-focused but also provides maintenance, repair, and overhaul (MRO) services for commercial airlines. It produces business jets under the Gulfstream brand through a legacy partnership.

Does IAI have a private equity or venture arm?

No, IAI does not operate an investment fund. It occasionally spins off non-core technologies into commercial startups but retains majority ownership.

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