Arit Industries, the defense company that owns Rishaf, a fuze maker in Sderot, has seen its stock fall by more than half from its January peak. At that high point, company owner Tzvi Levi realized a major exit, selling shares worth about 400 million shekels, after previously cashing out another 50 million shekels. Even after the drop, Arit is still valued at 3.2 billion shekels, up about 1,300% over the past three years.
In an investor call on Sunday, CEO Haim Stapler said the company has expanded annual fuze output from 20,000 to 220,000 units, an elevenfold increase. He said the industry is shifting toward advanced electronic fuzes, which now make up 65% of the market and can be remotely programmed electronically rather than only manually. Stapler said Arit is also moving to a new “build to stock” model, describing it as a major change that has not been used in the company’s more than 40-year history.
He said the main benefit is shorter delivery times, adding that faster supply can support price increases of up to 30% because a shell cannot be sold without its fuze. He also contrasted Arit’s performance with mechanical fuzes used during the war in Israel, saying those had success rates below 88%, while Arit’s are above 98%.
Arit plans 2026 as a transition year, with entry into the U.S. and European markets, where it currently has little presence. The company expects 2027 to bring growth, large order fulfillment, higher production and sales, and a stronger position as a leading international supplier. Stapler said his target is 15% of the U.S. and European market by 2027, possibly some of it already in 2026, while Arit already holds 80% of the market in India. He estimated the global fuze market will grow from $1.9 billion to $4.5 billion, and said, “I go to the world and say, this is according to IDF Israeli standards, that alone sells.” The company noted that its order backlog has fallen to 366 million shekels from more than 1 billion shekels last year, but it expects the new production strategy to lift orders later this year.
