RADA develops a new Cruise Missiles Detection Radar

17 August, 2020

The new mobile radar doubles the range of the company's existing systems. Its 2020 revenue guidance increased to over $70 million, implying over 58% annual growth

RADA Electronic Industries is expanding the range of its mobile tactical radars and started working on the development of a new radar system with extended detection range to be used for cruise missiles interception missions. RADA’s CEO, Dov Sella, said during the Q2 earnings conference call last week, that the U.S. military has identified missiles as one of the major threats in the coming years.

Defending the Maneuvering Forces

RADA’s current radars are used in tactical defense systems that can be mobilized along with maneuvering forces on the ground. The US Military is looking for a system that will provide protection from cruise missiles to American forces deployed in the Middle East. In January 2020, two American soldiers were killed in an attack by an Iranian cruise missile on the US Air Force base Ein-al Asad in Iraq, in response to the assassination of Qasem Soleimani.

Sella: “Today we are talking about the tactical ranges of about 10 kilometers and less, for mortars and short range rockets, that kind of stuff. With cruise missiles you need the longer ranges. So we are developing a bigger radar, doubling the ranges. But we stay at the tactical level.” The new radar features a diameter of 120 cm and depth of 90 cm. It is larger than the company’s existing systems but is compact enough to be installed on vehicles.

RADA's CEO, Dov Sella
RADA’s CEO, Dov Sella

The extended-range radar will be part of RADA’s next-generation systems, designed for use in UAV interception systems, Short-Range Air Defense systems (SHORAD), and Active Defense systems. Trials of the new radars will begin in less than a year. RADA is a rising star and enjoys very little competition in the market, yet.

The Tip of the Iceberg

Sales in the second quarter of 2020 grew by 75% year-over-year to a record $17.5 million. In the first six months of 2020, sales totaled $32.6 million, compared to $18.7 million in H1 2019. Sella: “It demonstrates the transition of our end market from the initial stages to the serial production phase. We estimated our addressable market at about $5 billion in the coming decade.” The company increased its 2020 Revenue Guidance to $70 Million.

But apparently, this is only the tip of the iceberg: “We are still scratching the surface of this potential. Few words about our current program. We are involved in the US APF program for fighting vehicles and we are part of Elbit’s Iron Fist solution.” Sella revealed that RADA had already provided 200 radar systems to the US Marines Corps.

Moreover, the Bradley Infantry Fighting Vehicle program is expected to bring about 600 radar systems order in 2022. In Israel, the IDF’s plan to equip itself with the new Eitan AFV which includes Elbit’s “Iron Fist” active defense systems may bring orders for about 1,000 radar systems in the coming years.

US Marine Corps all-terrain vehicle with an anti-drone detection and jamming system, equipped with RADA's radar
US Marine Corps all-terrain vehicle with an anti-drone detection and jamming system, equipped with RADA’s radar
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