RADA Expects 60% Revenues Growth
21 December, 2020
Management expects full year 2021 revenue of over $120 million. RADA to provide the tactical radar for the future US Army Stryker fighting vehicles
Above: US Army Stryker fighting vehicle equipped with RADA’s tactical radars
RADA Electronic Industries, based in Netranya, Israel, provided its revenue guidance for 2021: Management expects full year 2021 revenue of over $120 million, with sequential quarter on quarter revenue and profitability growth throughout the year. “We continue to experience an unprecedented period of growth, driven by our new and growing market of tactical radars,” said Dov Sella, RADA’s CEO. “The new orders, along with our very healthy pipeline for our tactical radars’, give us excellent visibility into 2021 and strong confidence that our 60%+ revenue growth rate will continue.”
RADA provides mini-tactical radars, serving counter-drone applications, active military protection, critical infrastructure protection and border surveillance. Earlier this week it announced the receipt of $23 million in accumulated new orders during November and December 2020. The vast majority of these new orders, is for software-defined tactical radars. Total orders in 2020 reached$102 million, compared with the $60 million in 2019.
From urgent-need programs to serial production
The new orders incorporate the initial serial production orders for two of RADA’s major future-growth programs: The first is IM-SHORAD Stryker for the US Army, performed in cooperation with Leonardo DRS. General Dynamics Land Systems (GDLS), the Stryker vehicle manufacturer which received a $1.2 billion contract from the US Army in October 2020. RADA’s current order from DRS is for the production of over 110 Multi-Mission Hemispheric Radars (MHR).
The seconf is for Elbit/IMI “Iron Fist” active protection system (APS), where RADA is the supplier of the CHR search-and-track radar. The initial order is for 200 radars, while further and larger orders are expected in 2021 and mainly in 2022. Future programs targeted to be equipped with Iron Fist, among others include the Bradley AFV with the potential of over 150 vehicles (implying over 600 radars).
While majority of orders for RADA’s tactical radars in recent years were for urgent-need programs, these new initial serial production orders are starting to build backlogs for RADA for 2021 and onwards.