Israel's defense manufacturing sector is experiencing record-breaking profits and revenue, driven by intense demand for "battle-tested" systems during the ongoing conflict in Gaza and heightened global security tensions. In 2024, Israeli defense exports reached a record $15 billion, and the top three defense companies reported surging revenues, often with record backlogs. Key Defense Company Results (2024/2025): Elbit Systems: Reported a 16% increase in revenue to $7.9 billion in 2025, with a massive $28.1 billion order backlog, largely driven by demand from the Israeli military during the Gaza war. Israel Aerospace Industries (IAI): Reported a 45% increase in net income to $712 million in 2025, with annual revenue rising 21% to $7.38 billion. Rafael Advanced Defense Systems: Reported around $4.8 billion in annual sales in 2024 and a record $17.76 billion order backlog, with high demand for air defense systems. Key Drivers of Profit: Battle-Tested Marketing: Israeli manufacturers use ongoing conflict, including footage from Gaza, to market their technology as proven in combat. High Demand for Drones & Missiles: There is a surge in international demand for unmanned aerial vehicles (UAVs), counter-drone systems, missiles, and precision-guided munitions. Domestic and Global Demand: While exports are a huge driver, the Israeli military has significantly increased its domestic spending, with IAI seeing a 34% rise in local market sales. Future Investment: The Israeli government aims to invest approximately $110 billion over the next decade to further boost domestic arms production, aiming for greater self-sufficiency. Major Markets: Major Markets: Europe: A major market for weapons systems due to increased defense spending. India: Continues to be a major partner for Israeli arms exports. United States: While a major supplier, the US is also a recipient of Israeli-developed systems, and a significant portion of US aid to Israel returns to US and Israeli firms. The surge in profits for Israeli firms has also coincided with record-high profits for US-based arms manufacturers, such as Lockheed Martin and RTX, which provide weapons and equipment to the Israeli Defense Forces (IDF). Now can you see why Palestine Action was focused on driving Elbit out of the UK? If a country bets its economy and the prosperity of its people on war, what happens when their isn’t a war on? There are, of course, many reasons for wars but profits have been a major component of every one of them.
