Israel Aerospace Industries said an initial public offering is "closer than ever" after record second-quarter and first-half 2026 results lifted its order backlog to $35 billion, up about $6 billion since the start of the year. Sales rose 35% year over year to $2.18 billion and net profit increased nearly 47% to NIS 229 million, reflecting strong demand from Israel, Europe and other markets for systems including Arrow interceptors and unmanned aerial vehicles. The state-owned defense contractor remains the most advanced among Israel's planned defense privatizations, building on a 2020 decision to sell a minority stake and earlier work on listing options, but bankers expect the October 27 election and subsequent coalition talks to delay any flotation until 2027. The capital-raising case has also sharpened as IAI seeks funds for infrastructure, production lines and research while dealing with negative quarterly cash flow of $795 million and more than NIS 5 billion owed by the Ministry of Defense amid a budget dispute.