IAI reports increase of 23.5% in net income in first-quarter

Israel Aerospace Industries (IAI), Israel’s largest national military and civilian security defense company, has issued its consolidated financial statements for the quarter ended March 31, 2021.

The company’s sales in Q1 2021 totaled approx. US$1,015 million compared with approx. US$1,018 million in Q1 2020, a decrease of US$3 million mainly arising from the increase in the sales of Systems Missiles & Space Group and of ELTA Group, offset by the decrease in the sales of Aviation Group and Military Aircraft Group. The sales of the Military Groups in Q1 2021 increased by approx. 12% to US$914 million compared with US$816 million in Q1 2020, an increase of about US$98 million. The Aviation Group sales in Q1 2021 decreased by approx. 27% to US$237 million compared with US$323 million in Q1 2020 – a decrease of US$86 million arising from the crisis in the global aviation industry.

Export sales in Q1 2021 accounted for 71% of sales at approx. US$722 million (approx. US$ 293 million to Israel, representing 29% of sales) compared with approx. US$724 million, accounting for 71% of sales in Q1 2020 (approx. US$294 million to Israel, representing 29% of sales).

Net income in Q1 2021 grew by approx. 23.5% to US$42 million (approx. 4.1% of sales), compared with net income of approx. US$34 million (approx. 3.3% of sales) in Q1 2020. The net income of the Military Groups in Q1 2021 increased by some 39% to approx. US$68 million compared with approx. US$49 million in Q1 2020, an increase of US$19 million. The net loss of the Aviation Group in Q1 2021 amounted to approx. US$8 million compared with a loss of approx. US$2 million in Q1 2020.

EBITDA in Q1 2021 grew by approx. 17.6% to approx. US$120 million (approx. 11.8% of sales), compared with approx. US$102 million (approx. 10% of sales) in Q1, 2020.