Rafael Financial Result 2021: Israel’s leading defence technology company Rafael Advanced Defense Systems Ltd. has released its financial results for the 2021 fiscal year which was approved by the company’s Board of Directors, with a total of $3.075 billion in sales, and a net profit of $133 million.
In 2021, Rafael registered over 4.7 billion dollars in orders, and its order backlog was 7.1 billion dollars,
Which is equivalent to 2.5 years of sales activity. This is also for the first time when Rafael has incorporated the financial reports of its subsidiaries Aeronautics and Controp.
In 2021, Rafael recorded a number of significant achievements, such as the unveiling of the Sea Breaker -a 5th generation autonomous seaborne missile capable of attacking at a range of 300 km, signing a teaming agreement with Lockheed Martin for the development of laser-based defensive systems and the marketing and system integration of SPICE 250 into the service of the U.S. Army.
The sale of the Spyder Air Defense System to the Czech Republic, which has catapulted Rafael to the forefront of global air defense system manufacturers with its entry into a NATO-member state’s military, was also finalized last year.
In addition, a massive contract with an Asian country to supply it with combat suites for battleships was also concluded last year. Israeli defence giant also completed the testing of its Iron Dome battery system last year in cooperation with the US Army.
Last week, Rafael received an order from the Ministry of Defense to develop the production and supply of the “Iron Beam” system – a powerful laser system for intercepting aerial threats that will serve as a complementary capability to the “Iron Dome.”
The development of the system is a technological breakthrough at a global scale and will join the likes of other Rafael systems supported by unique technological capabilities such as the Iron Dome, the David Sling, the Trophy Active Protective System and more. Rafael also won three Israeli Security contracts this year.
During the past year, Rafael continued to be a central provider in employment, the Israeli society and the economy, especially in the northern region – and even inaugurated a new production branch in the city of Shlomi along Israel’s border with Lebanon. Meanwhile, doubling its activity and operations in the Tel Aviv, Jerusalem and Beer-Sheva branches. This year Rafael, like the entire economy, experienced significant challenges in manpower retention, but at the same time a recorded a record high in recruitment; 1,000 new employees were recruited this year.
Rafael is the largest industrial employer in the north of the country,and one of Israel’s three largest defense companies, with 8,000 employees and numerous subcontractors and service suppliers, indirectly providing employment for some 20,000 households and with an annual purchase of more than 1.25 billion dollars (NIS 4 billion) from external subcontractors, mainly in the north of the country. Since becoming a formal business company, Rafael has transferred more than 628 million dollars (NIS 2 billion) in dividends to the state.
Approximately 9.3% of the company’s total sales are allocated to investment in R&D. The investment also includes joint activities with academic institutions in Israel and around the world and is also directed to various civic activities, including collaborations with startups and innovation centers.
Uzi Landau, Rafael’s Chairman said the company worked in a challenging and complex year to continue serving as a key pillar in Israel’s security, with a crucial contribution to the IDF and the entire defense establishment.
“Our investment in R&D and our coveted human resources – our employees – is what allows us to achieve the technological, operational breakthroughs alongside the marketing and business related achievements around the world,” Uzi Landau said in a statement sent to Defence Star.
Yoav Har-Even, Rafael’s President & CEO said 2021 was a very successful year in all industry related aspects which was well demonstrated in the financial achievements recorded despite the challenging circumstances.
“Whether it be the impact of the ongoing COVID-19 pandemic on the global economy, the disruption of the global supply chain, or the erosion of the Shekel-to-Dollar exchange rates. Continued investment in restoration and improvements, in the support and recruitment of manpower, the investment in research and development together with the right approach to the marketing and operational issues, allowed us to realize our goals and face the global and national challenges set before us,” Yoav Har-Even said in a statement.
Yoav Har-Even said Rafael will certainly improve its ability to operate in light of the security and political situation currently experienced by state of Israel.
“More than all else, Rafael is the central anchor of the State of Israel’s national security and a significant contributor to the economy, the society and to employment, especially in the country’s north,” Yoav Har-Even said.
“Also this year, we continued to ensure and enable the technical-operational superiority of the IDF and the defense establishment as a whole; which was further reflected in the fact that during Operation Guardian of the Walls, we once again saw the extraordinary commitment, dedication and professionalism of Rafael’s employees. Our employees have been and will continue to be the driving force powering the machine that is the spirit and energy of Rafael,” he added.