IAI reports booming Q2 as IPO approaches

Israel Aerospace Industries (IAI) revealed its second quarter (Q2) and first half financial results for 2021 on 17 August, with sales and profits both surging to record levels for the company.

Sales increased in Q2 2021 to USD1.15 billion compared with USD1.06 billion in Q2 2020. Overall sales for the first half were up by 4.1% to USD 2.16 billion, compared with USD2.08 billion in the first half of 2020. The increase in sales was largely attributed by the company to increases in the Systems, Missiles, and Space Group helping to offset reductions in the Aviation Group.

Gross profits for the company increased 13.5% in Q2 to USD185 million, up from USD163 million on Q2 of 2020. First half profits had also increased to USD351 million, compared to USD333 million in the first half of 2020. The company's Military Group recorded a 7.5% increase in gross profits for the first half of the year to USD314 million, up from USD292 million, with the company's Aviation Group accounting for USD30 million in gross profits for the period.

IAI has reported record results in the second quarter of 2021 as the firm prepares for an IPO at the end of the year. (IAI)

According to the company, the overall order backlog at the end of June 2021 was USD12.4 billion, a slight decline on the USD12.6 billion at the end of 2020. Of this orderbook, 79% is for export customers across a “geographically dispersed” basis.

The company is also preparing for an Initial Public Offering (IPO) to be launched by the end of the year. The floatation will be for a minority stake and is expected to be for 25% of the company, but potentially with the authority to expand to up to 49% from government regulators.