Israel Aerospace Industries (IAI), Israel’s largest national military and civilian security defense company, has issued its consolidated financial statements for the year ended December 31, 2020.
The company’s revenues in 2020 reached a record of US$4,184 million, representing the highest sales revenues ever recorded in company history, compared with US$4,108 million in 2019. The increase is mainly a result of the increase in the sales of the ELTA Group and the Systems Missiles & Space Group.
The sales of the Military Group in 2020 increased by 14% to US$3,508 million compared with US$3,080 million last year, an increase of US$428 million. The Aviation Group’s sales in 2020 decreased by approx. 18% to US$1,187 million compared with US$1,442 million last year – US$25 million of the decrease can be attributed to the crisis in the global aviation industry. Sales for exports in 2020 accounted for 71% of sales at approx. US$2,991 million (approx. US$1,193 million to Israel, representing 29% of sales), similar to the figures recorded in 2019.
Net income in 2020 grew by 48% to approx. US$133 million (approx. 3.2% of sales), compared with net income of approx. US$90 million in 2019 – the highest net income in IAI history. The Military Group’s net income in 2020 increased by approx. 13%to approx. US$248 million compared with approx. US$219 million in 2019, an increase of US$29 million. The Aviation Group’s net loss in 2020 amounted to approx. US$32 million compared with a loss of approx. US$21 million in 201.
EBITDA in 2020 amounted to approx. US$397 million, compared with approx. US$324 million in 2019, an increase of approx. 23% compared to last year. Gross profit in 2020 grew by 15% to approx. US$665 million (about 16% of sales) compared with approx. US$577 million (approx. 14% of sales) in 2019. The growth in gross profit was derived mainly from increased sales of the Systems Missiles & Space Group and the ELTA Group. The Military Group’s gross profit in 2020 increased by 15% to approx. US$598 million compared with approx. US$520 million in 2019, an increase of approx. US$78 million. The Aviation Group’s gross profit in 2020 increased to approx. US$78 million compared with approx. US$74 million in 2019.
Operating income in 2020 grew by 61% to approx. US$195 million (approx. 4.7% of sales), compared with operating income of approx. US$121 million in 2019 (approx. 2.9% of sales), an increase of approx. US$74 million. The Military Group’s operating income in 2020 grew by 18% to approx. US$285 million compared with approx. US$241 million in 2019, an increase of US$44 million. The Aviation Group’s operating loss in 2020 amounted to approx. US$10 million compared with an operating income of approx. US$1 million in 2019.
Net finance expenses in 2020 amounted to approx. US$21 million compared with approx. US$12 million in 2019.
