Israel Aerospace Industries, the state-owned defense conglomerate best known for producing the Arrow ballistic missile defense system, says a public offering is now more likely to materialize than at any previous point in the company’s history. Speaking to reporters, IAI President and CEO Boaz Levy described the IPO as “closer than ever,” according to Calcalist Tech, the Israeli business and technology publication that first reported the remarks. The disclosure comes as IAI’s order backlog has climbed to $35 billion — a figure that reflects both expanded domestic procurement and accelerating international demand for air and missile defense capabilities.

The timing is notable. Defense budgets across NATO member states, the Indo-Pacific, and the Middle East have risen sharply in recent years, and IAI sits at the center of several high-demand program categories: interceptor missiles, radar systems, unmanned aircraft, and satellite platforms. That breadth has made IAI an increasingly attractive prospect for institutional investors, even as a formal listing date has not been announced. The broader trend of Israeli defense firms moving toward public markets has been building for some time — as GDD previously reported on the IPO pipeline for Israeli missile-defense manufacturers, Tomer and others have also signaled listing intentions, though timelines have repeatedly slipped.

Backlog Scale and What Is Driving It

A $35 billion backlog is a meaningful industrial indicator. It represents contracted work not yet delivered — revenue locked in but requiring sustained production capacity, supply chain throughput, and a qualified workforce to execute. For IAI, that figure has expanded as multiple governments have sought to replenish missile defense inventories drawn down by transfers to active conflict zones, and as others have accelerated modernization timelines in response to the threat environment demonstrated in recent years by the proliferation of ballistic missiles, cruise missiles, and drone swarms.

IAI’s Arrow family — developed jointly with the United States and managed through a long-standing co-production arrangement — remains among the company’s most strategically visible programs. Arrow 3, designed to intercept ballistic missiles in the exo-atmospheric phase, has also drawn export interest from European governments seeking upper-tier missile defense coverage. The company’s other business lines, spanning maritime systems, intelligence platforms, and tactical UAVs, add diversification that is likely to appeal to public-market investors evaluating long-cycle defense revenue streams.

IPO Path Remains Defined by Conditions, Not a Fixed Calendar

Levy’s remarks stopped short of specifying a target date or exchange. The company is state-owned, and any public offering would require approval and structuring by the Israeli government, which retains oversight of IAI as a strategic defense asset. Officials have not confirmed what ownership stake might be offered to the public, what valuation methodology the government is using, or which exchange — Tel Aviv, New York, or another market — is under consideration. The phrase “closer than ever” signals intent and momentum more than a locked-in timeline.

Still, the backlog figure gives the IPO rationale concrete grounding. Investors evaluating a defense manufacturer with $35 billion in contracted orders are looking at a multi-year revenue runway that insulates the company from short-term budget cycles — a quality that commands premium multiples in the current defense-investment environment. The global surge in defense procurement, driven in part by lessons from ongoing conflicts and the increasing operational relevance of layered air defense, has broadly lifted the valuations of publicly traded peers. Whether IAI’s listing ultimately arrives in 2025, 2026, or later, the company’s commercial case appears stronger now than it has been at any earlier point in the IPO discussion. Counter-drone and directed-energy programs tracked elsewhere in the sector — including developments like directed-energy systems — reflect the same demand dynamics pushing IAI’s backlog higher.