JNS
The world’s first operational high-energy laser interceptor is set to significantly reduce interception costs.
Rafael Advanced Defense Systems concluded 2024 with record-breaking sales and a significant milestone: the impending operational deployment of its Iron Beam laser defense system.
Iron Beam has a range of up to 10 km. (6.2 mi), complementing the Iron Dome system, which intercepts projectiles fired from a greater distance.
The Haifa-based company reported a 27% increase in sales, reaching 17.8 billion shekels ($4.8 billion), and a 24% rise in its order backlog to 64.7 billion shekels ($17.5 billion), equivalent to more than three-and-a-half-year’s work. Net profit surged 64% to 950 million shekels ($257 million), driven by a strong fourth quarter in which sales hit 5.4 billion shekels ($1.46 billion)—a 20% year-on-year increase.
Despite challenges including employee military call-ups and supply chain disruptions, Rafael CEO Yoav Turgeman emphasized the company's resilience. "We continued supplying defense products as expected and introduced new innovations. Our order backlog could have been even higher had we finalized additional contracts, which will be completed soon."
Iron Beam: The future of missile defense
Looking ahead to 2025, Rafael’s primary focus is finalizing the Iron Beam system, the world’s first operational high-energy laser interceptor. According to Turgeman, Rafael is on track to meet its commitment to delivering the system by year’s end. "We are the first company in the world to bring such an advanced laser defense system to operational status. Despite all [the] challenges, we remain committed to our promise—this is a major global achievement."
Iron Beam is set to revolutionize missile defense economics by significantly reducing interception costs. Currently, a single Tamir interceptor used by Iron Dome costs around $50,000 per launch. In contrast, terrorist organizations in Gaza, such as Hamas and Palestinian Islamic Jihad, have spent as little as $500 to $1,000 per rocket, often funded by Iran. This economic asymmetry has long posed a challenge for Israel—until now.
The system is designed to complement Iron Dome, intercepting short-range threats at lightning speed and conserving missile stockpiles. “It allows us to neutralize threats at near-zero cost, forcing adversaries to spend significantly more to launch attacks than we do to stop them,” an official from the company said.
Expanding capabilities and global partnerships
Rafael continues to enhance its defense portfolio, with its David’s Sling missile defense system already securing major international contracts, including a recent deal with Finland. Turgeman hinted at further developments, stating, "David’s Sling offers exceptional capabilities at a lower cost than comparable systems, and more updates are on the way."
David’s Sling, which became operational in 2017, is designed to intercept enemy planes, drones, missiles and rockets, fired at ranges of 40 to 300 km. (25 to 190 miles).
As the largest defense employer in northern Israel, Rafael hired 1,800 employees in 2024, bringing its direct workforce to 10,000 and supporting 20,000 households indirectly. The company’s local procurement reached 4 billion shekels ($1.08 billion), primarily benefiting northern communities. Chairman Dr. Yuval Steinitz, a former Cabinet minister, highlighted Rafael’s economic impact, calling its growth "a driving force for Israel’s economy and a critical element in rehabilitating the north."
With continued demand in the defense sector, Rafael is increasing its research and development investments by 30% in 2025, totaling around 6 billion shekels ($1.62 billion)—some from its reserves and some from customers who commissioned development.
"We are committed to pushing the boundaries of innovation and ensuring Israel’s security with cutting-edge technology," Turgeman said.
