FIMI-backed company regains contract: $58 million deal secured

Easat Ashkelon, a manufacturer of propulsion systems controlled by the FIMI fund, reports on a deal that has more to it than meets the eye. The company announced the expansion of an existing framework agreement with a leading American client in the aviation sector, to include the production and supply of power transmission systems for the wing flaps of the Boeing 787 'Dreamliner' passenger aircraft.

Notably, these are exactly the products that Easat supplied in the past to the same client, as part of an engagement that ended back in 2023. In other words, the company has regained a contract it had lost, and this time on improved terms.

The new agreement joins a framework agreement signed in March 2025 for the supply of systems for Airbus A350 models, and expands the cooperation between the parties. The total financial scope of the update is estimated at approximately 58 million dollars, but it is important to be precise: this is an estimate spread over about 20 years, and it is conditional on the client actually purchasing products from Easat that reflect a market share of about 25%.

The client is not committed to minimum orders, so this number is a target and not a signed commitment. Deliveries are expected to begin in 2028 and continue as long as the production of the relevant models continues.

In terms of Easat, the significance goes beyond the number itself. Returning to a Boeing project establishes its status as a Tier-1 supplier, meaning a senior and certified supplier at the highest level of critical components for the world's largest aviation manufacturers. This is a point that the company emphasizes, and it is part of a growth strategy that is already evident in the reports.

Easat finished the first quarter of 2026 with record results: net profit jumped by about 24%, the company transitioned from financial debt to a net financial surplus, and it holds an order backlog of about 2.6 billion shekels, representing more than five years of guaranteed revenue in advance.

The core of the business is actually security-related: transmissions and propulsion systems for Merkava tanks and Namer APCs, a demand that does not stop. In January, the company raised about 120 million shekels from institutional investors, among other things to finance future acquisitions.

Above all sits the FIMI fund, which holds about 50% of Easat and is considered one of the most successful investment funds in Israel. FIMI previously recorded returns of 11 times on Bet Shemesh Engines and 6 times on Galam, and recently raised a record sum of 1.75 billion dollars.

A significant portion of the investors in FIMI funds are the entities that manage the public's pension and provident funds. In other words, a 20-year aviation contract signed in Ashkelon may eventually flow into your long-term savings as well.

Alongside this, it is worth remembering the risks: dependence on a single client, lack of minimum orders, and a scenario in which the actual market share will be lower than 25%. But the big picture is clear: Easat continues to accumulate long-term contracts, and FIMI continues to do what it knows best.

Easat Ashkelon CEO, Eli Damari, stated:

"In parallel with the significant growth in Easat's activity in the defense sector, the company is investing many resources and showing growth in the volumes of activity in the civil and military aviation sector as reflected in the expansion of Easat's framework agreements. This is while maintaining a high level of service for our international clients, and adhering to quality without compromise and to meeting schedules in emergencies and in routine."

The agreement signed with a leading American client in the aviation sector joins a series of other significant agreements in the aviation sector that Easat has signed in the past year, which together with the current agreement amount to about 250 million dollars. These new agreements express the continued trust of our clients in the capabilities of Easat Ashkelon and fit into the company's strategy to expand its activity among existing and new clients, alongside continuing to establish its status as a leading supplier in international markets.