Bakshi Finance — Family Office
The information presented on this site is provided for informational and educational purposes only. It does not constitute investment advice, investment marketing, or a substitute for personalised advice. The firm operates as a Family Office serving qualified investors. The firm’s founder held a licensed investment-advisory practice from 2008 through 2023. This site does not participate in the investment decision.

Arit Industries Ltd.

Arit Industries Ltd. | TASE | Defence Specialty

Data as of: April 2026 | Primary source: 2025 Annual Report

ARIT
Research Depth · Standard Israeli Defense · Specialty
Market Cap
₪4.96B
Price NIS 49.55
Revenue 2025
₪523.8M
Growth 4.1×
Net Income
₪346.8M
Growth 5.8×
Gross Margin
68.7%
from 56.1% in 2024
Operating Margin
61.6%
from 46.5% in 2024
Order Backlog
₪784.8M
31.12.2025
1 Company Profile

Arit Industries (ARIT) is an Israeli defence-industrial company in accelerated growth, traded on the Tel Aviv Stock Exchange. The company manufactures defence systems and technology solutions, with a revenue mix of intelligent systems and communications. 2025 was a breakthrough year for Arit — revenue grew 4.1×, net income grew 5.8×, and operating margin rose to 61.6% (from 46.5% in 2024). Market capitalisation: NIS 4.96B. Order backlog: NIS 784.8M. Key observation: a 68.7% gross margin and 61.6% operating margin — exceptional levels that warrant examination of whether they are sustainable or one-off.

ActivityFeature
Defence SystemsCore product
Communications SolutionsAdvanced systems
Smart SystemsStrategic expansion
ServicesMaintenance and support

Source: 2025 Annual Report

2 Key Financial Observations

This summary is not a recommendation. It is a factual list of key financial metrics.

2025 Performance

MetricValue
Revenue₪523.8M
Net Income₪346.8M
EPS₪3.45
Gross Margin68.7%
Operating Cash Flow₪377.2M

Additional Metrics

MetricValue
Market Cap₪4.96B
Order Backlog₪784.8M
P/E14.3x
Operating Margin61.6%

Missing data: Customer breakdown, individual material contracts, share of orders from the Israeli military vs exports.

Financial Metrics
Activity Breakdown
Gross & Operating Margin (%)
Net Income (NIS M)
Revenue (NIS M)
Order Backlog (NIS M)
3 Industry & Competitive Context

Israeli defence. Demand intensified with the recent war. Competition from Elbit, Rafael, IAI.

CompetitorTickerDifference
Elbit SystemsESLTIsraeli defence giant
Rafael—Government-owned
IAI—Government-owned
Next VisionNXSNCompetes in stabilized cameras
4 Risk Factors
RiskContext
Exceptional margins61.6% — one-off or structural?
Reliance on the Israeli militaryIf a high % of orders
Competition from ElbitDifferent R&D investment capacity
Geopolitical riskIsrael under continuing risk
5 Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.

This framework is intended to structure analysis, not to produce an investment conclusion.
Growth
Revenue up 4.1× — sustainable or one-off?
Profitability
Operating Margin 61.6% — a stable state?
Leverage
Stable balance sheet — positive cash flow
Competitive Position
Against Elbit — a distinctive niche?
Management Quality
Excellent 2025 execution — return to a standard pace?
Business Complexity
Product mix — how should it be valued?
These are the questions. The specific answers for Arit Industries are woven throughout the analysis and discussed in depth under "How to Think About This Company".
The same six questions are asked of every company on the site — what varies is the answers, not the instrument.
6 Scenario Framework
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
Constructive Scenario — if the following conditions hold:

Large orders from foreign militaries, the backlog continues to grow, margins hold above 50%.

Base Scenario — if current trends continue:

Revenue grows 30-50%, Operating Margin 40-50%, Net Income grows 1.5-2×.

Adverse Scenario — if the following risks materialise:

Margins revert to historical levels of 25-30%, backlog erodes, orders decline.

Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.
7 How to Think About This Company
Arit is a small Israeli defence company that experienced a breakout year. The idea behind analysing Arit is not "is the sector in demand" (yes — in the wake of the war), but rather "is the 61.6% operating margin sustainable, or one-off due to an unusually large contract?" Margins at that level are exceptionally high even for major defence primes.
The critical variables: (a) backlog composition — one large contract or diversified? (b) exports vs Israeli military — the share of each; (c) margin stability over 5-8 quarters.
Where the analysis may go wrong: First error — assuming 61% margins persist forever. Second error — valuing on P/E 14.3× without examining earnings quality. Third error — underestimating the risk of reversion to industry norms (25-35% operating).
Professional analysis addresses three things: (a) contract analysis — one-off versus recurring; (b) geographic diversification; (c) margin comparison with peer companies.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
8 Sources & Data
#SourceDateType
1Arit — Annual Report 2025March 2026Official — TASE
2maya.tase.co.ilApril 2026Official — Stock Exchange

Missing: Customer breakdown, individual material contracts, share of orders from the Israeli military vs exports.

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Bakshi Finance | Family Office | All rights reserved 2026

Disclosure: The information presented in this document is provided for informational and educational purposes only. It does not constitute investment advice, investment marketing, or a substitute for personalised advice tailored to the client. The firm operates as a Family Office serving qualified investors only. The firm’s founder held a licensed investment-advisory practice from 2008 through 2023. Past performance is not indicative of future results. This site does not participate in the investment decision. This framework is intended to structure analysis, not to produce an investment conclusion.