April 18, 2022
80% of orders come from the US market, after budget approval. The company’s share soared more than 60% this year amid expected growth in NATO countries’ defense budgets following the war in Ukraine
[בתמונה: מניית ראדא בשלושת החודשים האחרונים. מקור: Yahoo Finance]
Netanya’s tactical radar manufacturer (RADA) reports that it received new orders totaling over $ 29 million in the first quarter of 2022. The new orders received represent an increase of more than 22% compared to the corresponding quarter of 2021.
Over 95% of all orders received are for Rada’s software-based tactical radars for use in active defense systems (APS). Unmanned aerial vehicles, short-range air defense (SHORAD) And point protection solutions for strategic bases and facilities. 80% Orders were received from the U.S. market, and the rest from other global marketers.
Dov Sela, CEO of Rada Explained that the volume of orders in 2021 from the US market was slightly lower than expected due to the delay in approving the budget. “However, from the end of this situation we are experiencing renewed momentum in receiving new orders in the US, which is our main market, and expect that delays in orders and revenues caused by non-transfer of budget will be compensated during the continuation of 2022. In order to enable air defense and active defense solutions as reflected in the current and ongoing war in Ukraine, we approve our revenue forecast to exceed $ 140 million by 2022. ”
Indeed, the war in Ukraine has greatly raised investors’ expectations of Rada, assuming that the war will lead to an increase in defense budgets, especially among NATO countries. This was reflected in the performance of the company’s stock, which has soared since the beginning of the year at a rate of 62% to a market value of $ 780 million.
The war in Ukraine is fueling defense budgets
Brada estimates that the company’s total potential target market is estimated at $ 6 billion over ten years. Yet while the United States was responsible for about 75% of revenue in 2021, the European market is still faltering and far from being exhausted. The war in Ukraine led to a turning point in the security perception of some European countries. For example, a few days after Russia’s invasion of Ukraine, German Chancellor Olaf Schultz announced an increase in the defense budget by 100 billion euros in 2022. Following Germany, Romania, Poland, Belgium, Italy and others also announced their intention to increase the defense budget.
Rada radars are installed in various types of defense systems, such as unmanned aerial vehicle detection and interception systems, short-range air defense systems (SHORAD), missile defense systems and short-range artillery (C-RAM), and active defense systems.
Posted in categories: Profit Reports, News, Radar, Aviation & Security
Posted in tags: Tactical Radar, Rada
