Arit Industries Secures Potential $16 Million Order for Artillery Fuses in North America

Arit Industries announced that its subsidiary, Reshef, has won a tender in North America for the supply of artillery fuse primers. This win is expected to lead to a new order for Reshef valued at approximately $16 million (around 48 million shekels). While the order is not yet binding, the company anticipates it will be finalized within weeks, with delivery schedules to be determined.

This potential order follows a significant previous contract from the same North American client. In 2024, Reshef received an $83 million order from this customer, which was fully supplied during 2025. In that year, Arit Industries generated approximately 271 million shekels in revenue from North America. Although the new order is smaller, its significance lies in demonstrating repeat business from a key client, highlighting Reshef's ability to secure ongoing contracts in the region.

Arit Industries faces the challenge of converting this continued business into a broader base of orders in North America, while also establishing local production capabilities and expanding its presence in Europe. The company's stock saw a slight increase following the announcement, offering some relief to investors after a period of decline. Arit Industries is currently valued at 1.6 billion shekels, a substantial drop from its peak earlier in the year.

Recent financial results have shown a slowdown, with a 36% decrease in revenue and a significant drop in net profit in the second quarter. For the first half of the year, revenues were down 14% and net profit fell 45%. Despite these figures, Arit views 2026 as a "transition year" and projects revenues of around 340 million shekels, anticipating that increased penetration in North America and Europe, along with new orders, will help the company regain its growth trajectory.

CEO Haim Shapira noted that the company sees an acceleration in demand for artillery fuses due to increased defense budgets, depleted ammunition stockpiles, and the need for Western nations and NATO to replenish reserves and build local manufacturing capacity. He stated that while this new order is expected to be manufactured in Israel, it strengthens the strategic rationale for establishing a production facility in the U.S. to support future market expansion.