Israeli Defense Exports Hit Record $19.2 Billion Amid European Surge
Israeli defense exports hit a record $19.2 billion in 2025, with European nations purchasing 36% of systems. At the AUSA exhibition in Washington, Israeli firms unveiled advanced hypersonic interceptors, loitering munitions, and anti-drone technologies.
Israel's defense exports reached a record $19.2 billion in 2025, driven by a surge in European demand for Israeli air defense systems. Europe accounted for 36% of total defense sales, a significant shift for a continent that historically avoided Israeli military hardware. Meanwhile, North America represented 13% of the market during this historic fiscal year.
Because the US market for ballistic missile defense is dominated by domestic prime contractors like Raytheon and Lockheed Martin, Israeli defense firms are utilizing the AUSA exhibition in Washington to showcase complementary solutions targeting emerging and urgent operational threats.
Rafael Advanced Defense Systems unveiled a model of the "Sky Sonic" hypersonic missile interceptor, a self-funded project designed to counter threats already operational in Russia and China. Hypersonic missiles travel at speeds exceeding 5,000 kilometers per hour and are capable of sharp maneuvers, outperforming traditional interceptors.
Israel Aerospace Industries (IAI) introduced HawkGuard, a compact active defense system featuring radar, electro-optical sensors, artificial intelligence (AI) control, and a kinetic interceptor drone without a warhead. The system is designed for mobile forces, base defense, and naval applications.
Guy Bar Lev, CEO of Israel Aerospace Industries, stated: "In a world of complex aerial threats, there is no single solution that fits every scenario. IAI's defense philosophy is based on a combination of complementary capabilities, allowing us to tailor the response to the threat, the mission, and the operational environment."
Rafael also displayed an upgraded version of the Spike missile, engineered for launch from legacy TOW launchers mounted on thousands of US Army Bradley fighting vehicles without requiring gunner interface modifications. Additionally, the long-range Spike NLOS was showcased alongside the high-speed loitering munition L-SPIKE 4X, addressing Pentagon demands for local production capabilities.
Yoav Turgeman, CEO of Rafael, noted: "Rafael arrives at AUSA with a wide range of combat-proven systems in air and missile defense, precision strike, maneuver, and intelligence. Alongside proven capabilities, Rafael offers the US military the capacity to manufacture them locally on the required scale."
Elbit Systems of America, operating under the name Twenty-Six Defense following a major artillery contract loss, employs over 3,300 local workers with annual sales of $1.7 billion. The company presented an upgraded Sky Striker loitering munition featuring an extended range and a larger warhead, alongside advanced soldier-vision systems.
State-owned Tomer, a manufacturer of rocket motors for missiles and rockets, highlighted its expanded production capacity as a primary supplier to major defense contractors. Meanwhile, the Ministry of Defense's SIBAT defense export directorate established a national pavilion showcasing 19 small and medium defense-tech enterprises offering niche solutions, ranging from GPS anti-jamming technology by infiniDome to net-based drone interception systems by ParaZero.
Brig. Gen. (Res.) Yair Kales, head of SIBAT, emphasized: "The participation of 19 Israeli companies at the AUSA exhibition reflects our confidence in the capabilities of Israel's defense industry and its value to the United States and other partner nations."
