State-Owned Defense Firm Tomer to Pay $10 Million Dividend
Translated & summarized from Calcalist by baba
Israel's Government Companies Authority approved the state-owned defense firm Tomer to pay approximately 38 million shekels in dividends from its 2024-2025 profits. This dividend represents about 50% of the company's net earnings for those years. Tomer, a producer of rocket defense systems, is also planning to raise at least 300 million shekels through institutional debt to fund production expansion.
The story in 5 lines · by baba
- State-owned defense firm Tomer will pay approximately 38 million shekels in dividends to the Israeli government.
- The dividend payment covers profits from the years 2024 and 2025.
- The approved dividend represents about 50% of Tomer's net profits for the two-year period.
- Tomer develops rocket systems for air, land, and sea defense.
- The company plans to raise at least 300 million shekels through institutional debt financing.
Israel's Government Companies Authority has approved the state-owned defense firm Tomer to distribute approximately 38 million shekels (about $10 million) in dividends to the state from its 2024-2025 profits. The dividend payment includes about 17.7 million shekels for 2024 profits and approximately 20.5 million shekels for 2025 profits. This approval follows a prior endorsement by Tomer's board of directors, in accordance with the Government Companies Law.
The dividend amount represents about 50% of Tomer's net profit for these years, which were 36.3 million shekels in 2024 and 41 million shekels in 2025. Typically, government companies are required to allocate at least 50% of their annual net profits to cash dividends, subject to legal provisions and the company's specific circumstances. Previously, Tomer was permitted to distribute lower profit percentages due to its initial protected status, but this marks a significant increase in dividend payments for 2024 and 2025.
Tomer, established about a decade ago from the privatization of Taas, specializes in producing rocket systems for air, land, and sea defense. Its developments include engines for the Arrow missile family, boosters for the Ofek satellite, and engines for artillery rockets. The company is currently seeking to raise at least 300 million shekels through institutional debt financing to expand its production capacity, with a maximum issuance framework of 500 million shekels set by the Government Companies Authority.
This debt issuance, planned by the end of the year, will be conducted through institutional bonds, similar to Rafael, allowing Tomer to remain a private entity and avoid public disclosure requirements due to the classified nature of most of its operations. The Government Companies Authority views this private debt issuance as a compromise, balancing the state's security interest in maintaining classified operations with the company's need for capital for growth and development.