Since the start of the Gaza conflict in October 2023, Israel’s defense industry has experienced dramatic expansion with major firms reporting record revenues due to an upsurge in domestic demand and robust international sales. Wsj.com/+1 or Reuter’s reports detail these remarkable successes for yourself.
Elbit Systems, Israel’s top defense contractor, reported an impressive surge in first-quarter profits for 2025 due to an increase in Israeli military sales as well as global defense spending growth. The company experienced a 20 percent surge in aerospace sales, particularly precision-guided munitions sales; revenues in this segment reached $1.9 billion. Elbit generated more than 32% of its annual revenues from Israel since October 7, 2023 when conflict broke out, supplying various military systems ranging from drones to guided rockets. Elbit’s order backlog reached $23.1 billion, with 66% coming from non-Israeli clients indicating strong international demand. Elbit plans to fulfill half of these orders by 2025-2026 while strengthening production capacity and supply chain efficiency to meet higher volumes.
Reuters.com
Israel Aerospace Industries (IAI) also enjoyed an exceptional year, seeing their profits jump 55% year-on-year to $493 Million from $318 Million the previous year. Revenue rose 15.5% year-on-year to reach a total of $6.1 billion, thanks to increased military sales amid ongoing conflicts and domestic sales leaping up from $1.5 billion to 2.1 billion, representing a higher market share (34%). Export sales made up 66% of IAI’s revenue and increased from $3.8 billion to $4.3 billion year over year, representing 66%. IAI’s order backlog rose significantly as well, reaching $25 billion and suggesting continued operations at current capacity for four years. CEO Boaz Levy noted the company’s success meeting customer supply demands while meeting customer satisfaction demands despite global challenges and intense warfare.
Visit Reuter’s.com to stay up-to-date.
SIPRI, the Stockholm International Peace Research Institute, reported in 2023 that arms revenues of three Israeli companies in its Top 100 reached an all-time high of $13.6 billion – this represents increased demand for Israeli defense products amid Gaza conflict. responsiblestatecraft.org + 2 sipri.org + 2 APnews.com.
Critics argue that Israel’s defense industry has profited from Gaza conflict by using Gaza as a testing ground for new weaponry, then marketing them as battle-tested to international buyers. According to investigative journalist Antony Loewenstein, Israel “has been testing new tools and technologies in its wars; as early as October 7 it started trying to sell them at various global arms fairs.” truthout.org
aljazeera.com Responsiblestatecraft.org
truthout.org Aljazeera.com Its AAPnewscom Aa.com.tr OOMNY.fm
International reactions have been varied. Spain recently cancelled an EUR285 million contract for 168 SPIKE LR2 anti-tank missile systems to be produced by Pap Tecnos, a subsidiary of Rafael Advanced Defense Systems from Israel, due to their desire to fully disengage with Israeli military technology. (Sources: AAPNews and Cadenaser.com for details)
Israeli defense industry remains resilient despite these challenges, taking advantage of its reputation for advanced military technology and perceived effectiveness of systems in active conflict zones. As the Gaza conflict persists, however, the interplay between military engagement and defense industry profitability remains under international scrutiny and debate
