Trade fee erodes Rafael revenue
Rafael Superior Protection Methods experiences 20% development (45% in greenback phrases) in second quarter income to NIS 5.6 billion ($1.91 billion) and a 39% (68% in greenback phrases) soar in new orders to NIS 6.9 billion ($2.3 billion). Speaking to “Globes”, Rafael CEO Yoav Tourgeman referred to as on Minister of Finance Bezalel Smotrich and Governor of the Financial institution of Israel Amir Yaron to intervene within the overseas change market.
“Within the first half yr, greater than 60% of the orders had been for export, a a lot greater proportion than within the corresponding interval,” Tourgeman explains. “After we obtain orders in {dollars} and the shekel-dollar fee falls, or in euros and the euro fee falls, there’s a terrific deal much less in shekels, and the profitability of the offers diminishes. Furthermore, it does one thing else: it makes our bids costlier in greenback phrases, as a result of within the forthcoming ones I must have in mind a excessive conversion fee. That harms our competitiveness. It weighs on our industrialists, and that’s very unhealthy information for the Israeli market. I hope that the finance minister and the governor will take it on themselves to cope with this matter in a extra important approach than they’ve to this point. Anybody who needs a soundly based mostly industrial financial system should be sure that the change fee fluctuates inside an affordable vary and doesn’t get uncontrolled.”
Tourgeman factors out that inside a yr the shekel-dollar change fee has fallen from 3.67/$ to underneath $3/$, and says that Israeli business can’t maintain this. “State intervention is required. It was required prior to now, and now much more so,” he says.
Within the second quarter of 2026, the struggle with Iran meant that Israel accounted for 56% of Rafael’s gross sales, adopted by Europe (22%), Asia (16%), and America (5%).
Gross sales within the first half of 2026 totaled NIS 10.6 billion ($3.57 billion), representing development of 13.6% in shekel phrases and 35% in greenback phrases compared with the primary half of 2025. 12 months-on-year, the orders backlog grew by 33% to NIS 75.8 billion ($25.47 billion).
Rafael’s web revenue for the primary half of 2026 was NIS 663 million ($222.8 million), 8% greater than within the first half of 2025 (28% greater in greenback phrases). This passed off throughout a interval by which the state’s debt to the protection corporations grew to unprecedented proportions. “Rafael is a really sturdy firm with the best credit standing within the nation, so the banks are glad to lend,” Tourgeman says. “However, credit score prices cash, and that exhibits up within the revenue line. Does it hurt efficiency? Sure.”
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What do clients search for in Rafael?
“The aerial protection market with all its layers is a major concern world wide. Because the entity accountable for virtually 100% of Israel air defenses, Rafael is a outstanding participant. The Spyder cope with Romania is the largest in Rafael’s historical past, and I presume that there might be extra prefer it, and never simply in Europe, however throughout. Europe is topic to the best tensions, and has the widest hole between wants and capabilities. I subsequently estimate that along with the flexibility to pay will come massive demand and plenty of offers. We’re additionally seeing substantial development in floor, maritime, air, and intelligence programs, a energetic market with excessive regard for our merchandise.”
Tourgeman says that the rising respect for Rafael’s merchandise is bolstered by their spectacular efficiency within the marketing campaign in opposition to Iran, which demonstrated their prime quality. “We’re a provider that provides on time, and with a view to meet schedules we elevated output by 55% compared with the corresponding interval. That’s greater than startups handle. We did it by way of enchancment alongside the entire worth chain: mechanization, automation, the provision chain, manufacturing flooring. If you take a look at the issues on the earth, there’s issue in assembly demand, and sure corporations say ‘it is going to take years extra’. So clients come to us to decide on high-quality tools, cheaper, and on a brief timetable.”
Rafael chairperson Yuval Steinitz repeated his name for the corporate to be floated on the inventory change, particularly within the mild of its efficiency. “The achievements of our enterprise are doubly spectacular in a interval by which the corporate is working in a fancy safety atmosphere and in a aggressive and dynamic international market,” he stated.
“Wanting forward,” he continued, “the additional strengthening of Rafael as a number one protection firm necessitates the variation of its development infrastructures to the challenges of the approaching years, together with a change in its standing by way of an providing of shares that can allow it to broaden funding in breakthrough applied sciences, deepen its worldwide exercise, retain the very best brains and preserve its scientific and operational benefit, whereas safeguarding the safety pursuits of the State of Israel,” Steinitz stated.
Printed by Globes, Israel enterprise information – en.globes.co.il – on August 31, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
