Israeli defense company Aryt industries (TASE: ARYT), which is based on the Gaza border in Sderot, today reported a large order for fuses worth NIS 310 million. The new order almost doubles its backlog of orders to NIS 700 million, compared with an orders backlog of NIS 430 million in August 2024 and NIS 220 million in November 2023. The fuzes, which Aryt will supply through its subsidiary Reshef Technologies , are to be delivered to a US company in 2025.
Aryt Industries share price has jumped nearly 30% on news of the order. The share price has risen 130% over the past year and by 570% over the past two years. The company's market cap is nearly NIS 600 million with the biggest beneficiary being chairman Zvi Levi, who holds a 50.7% stake in the company.
Aryt Industries manufactures fuses (operating mechanisms for mortar and tank shells and more) and military electronic products. The company has described its latest order as a "major breakthrough to shape the future of the company and to expose it to potential customers in the global industry. The cooperation will allow Reshef to market its products... in new markets in which it has not operated so far."
The company also notes that following all the large orders it has received in the past year, totaling NIS 380 million from the Ministry of Defense in Israel, the company has "significantly increased the work and operation areas at the factory in Sderot, among other things, by renting additional buildings near the existing factory, adding production lines, purchasing equipment and significantly increasing the workforce. Reshef is currently continuing to expand and further increase the workforce."
Aryt industries added that it soon hopes to close another major order over 10 years as part of a tender in India, "for which the negotiations are in their final stages." As part of this, Aryt expects an order of 500,000 artillery fuzes per year with projected annual revenue of $17-19 million.
Aryt industries CEO is Haim Stapler. In the first half of 2024, Aryt reported revenue of NIS 29 million, up 340% from the corresponding period of 2023 with net profit of NIS 5.8 million, compared with a net loss of a similar amount in the first half of 2023.
Published by Globes, Israel business news - en.globes.co.il - on November 4, 2024.
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