Israel Aerospace Industries (IAI) reported a record $35 billion order backlog for the second quarter of 2026. Net profits rose 47% to $229 million. Total sales reached $2.19 billion.
Global demand for Arrow missile defense systems, Heron drones, and Ofek satellites drove the performance. Export sales accounted for 67% of quarterly revenue. These international sales increased by approximately 40%.
The company reported a negative cash flow of $795 million for the quarter. This marks a sharp reversal from a positive cash flow of $170 million during the same period last year.
The Israeli Ministry of Defense withheld payments due to a dispute with the Treasury Ministry. This growing domestic debt creates significant financial strain despite strong international sales.