Rafael CEO Demands Billions in State Debt Payment

Defense contractor Rafael announced record financial results for the second quarter, with sales reaching NIS 5.68 billion ($1.9 billion), a 20% increase. New orders surged by 39%. Year-to-date sales stand at NIS 10.63 billion ($3.55 billion), and the company's order backlog has grown to NIS 75.8 billion ($25.4 billion). Net profit for the first six months of the year was NIS 663 million, an 8% rise.

Rafael's CEO, Yoav Turgeman, highlighted the company's strong performance despite challenges including a war, extensive reserve duty call-ups, supply chain issues, and currency depreciation. He noted that Rafael's domestic defense operations alone now make it the largest in Israel, surpassing competitors like Israel Aerospace Industries and Elbit Systems in growth rate.

Turgeman also voiced strong criticism regarding outstanding payments from the Israeli government, stating that the state owes Rafael "huge sums" and that the Ministry of Finance is not engaging in discussions about compensation. He explained that Rafael is forced to take out expensive loans due to the delayed payments, which he described as "not normal."

Professor Uzi Landau, Chairman of Rafael, emphasized the need for the company to adapt its infrastructure for future growth. He suggested that an initial public offering (IPO) would enable Rafael to invest in breakthrough technologies, expand international operations, attract top talent, and maintain its technological edge while safeguarding Israel's security interests. Landau expressed hope that the next government would expedite the IPO process, warning that without it, continued growth and market leadership would be difficult.