Israeli Firm Arad Electronics Secures $1.9 Million Deal with US Air Force

Arad Electronics, an Israeli company specializing in advanced AI and machine learning-based electronics and computing systems for civilian and military applications, has announced a new order valued at approximately NIS 5.9 million (USD 1.9 million) from the U.S. Air Force. The deal involves the supply of the company's temperature controllers for J85 engines, which are installed on nearly 1,000 engines across approximately 550 T-38 training aircraft.

The delivery of these controllers is expected to be completed by the end of 2026. Arad Electronics' position as a sole supplier for this system is based on a licensing agreement from the early 2000s, when the U.S. Air Force licensed the company's digital temperature controller for the J85 engine. This controller features redundant control channels and capabilities for engine health monitoring and anomaly detection, replacing an older, less reliable analog controller from GE, the engine manufacturer.

The company has already supplied close to 1,000 systems to the U.S. Air Force through previous orders. Arad Electronics also upgraded the engine's exhaust nozzle control algorithm at the request of the U.S. Air Force, a task typically reserved for the original equipment manufacturer, highlighting the trust in Arad's technological capabilities. The company also provides maintenance and upgrade services for these controllers throughout their product lifecycle, including a recent five-year framework contract worth $6 million signed in 2025.

Arad's control and monitoring systems are utilized in various aircraft, including the Israeli Air Force's Apache helicopter fleet and F-16 fighter jets operated by air forces globally. The company is expanding its reach into unmanned aerial vehicles and flying munitions, with its braking controller for F-16s slated for integration into a new UAV developed by Lockheed Martin. This collaboration underscores Arad's role in advanced aviation programs with leading defense manufacturers.

Ofer Alikim, CEO of Arad Electronics, stated that the current order reflects the company's ability to develop and integrate advanced technologies into complex and sensitive aviation and defense systems. He emphasized a forward-looking strategy focused on continued investment in innovation, precision, and reliability, alongside expanding the applications of their technologies for advanced aircraft and systems. Alikim added that Arad aims to leverage its technological advantage to grow its presence in international markets.