JERUSALEM (VINnews) — Rafael Advanced Defense Systems Chairman Yuval Steinitz said that the company is experiencing unprecedented demand for its defense systems, driven largely by a surge in orders from European countries, even as he warned that Israel’s confrontation with Iran may not be over.

In an interview Sunday with Israel’s 103FM radio, Steinitz discussed Rafael’s record second-quarter results, including a major defense deal expected to be signed with Greece, growing tensions with Turkey and the company’s financial challenges.

Rafael reported NIS 5.68 billion ($1.9 billion) in sales in the second quarter of 2026, with the company recording significant growth in both revenue and net profit. Steinitz described the results as particularly striking given the security situation facing Israel.

“These are excellent results under difficult circumstances,” he said, noting that Rafael had operated through the war, fighting involving Hezbollah and attacks targeting its sites in northern Israel.

“It sounds almost like a miracle when you take into account that we had a month-and-a-half war with Iran, as well as fighting on the northern border, and thousands of Rafael employees were called up for reserve duty,” Steinitz said.

He attributed much of the company’s dramatic growth to a sharp increase in international orders. “The enormous growth is mainly in orders from abroad,” he said. “There has been enormous growth in orders from Europe, particularly from Central European countries, but also Sweden, Poland, Germany, the Czech Republic, Romania and Greece.” Rafael has also seen some growth in orders from Asian countries, he added.

Steinitz also addressed the enormous defense agreement expected to be signed tomorrow between Israel and Greece, describing it as potentially one of the largest defense deals in Israeli history. “We’re talking about almost $4 billion, and most of it involves Rafael systems,” he said.

He compared the anticipated agreement to a deal Rafael signed with Romania several months ago and predicted that even larger contracts with European countries could follow. “I expect even bigger deals next year in various European countries with which we are in contact,” Steinitz said. “Europe has finally realized it: There is nothing like Rafael’s technology.”

The surge in European demand comes as governments across the continent reassess their defense capabilities and seek to strengthen air defense, missile defense and other military systems.

The Rafael chairman was also asked about concerns that Israel could face shortages of critical munitions. While declining to provide specific figures, Steinitz rejected what he described as overly pessimistic assessments.

“I cannot go into details and numbers, but I repeat what I have said in the past: In my assessment, there is no scenario in which someone tries to attack us and we don’t have air defense, defense against missiles and rockets, UAVs and cruise missiles,” he said. “There was such defense in the past, and there will be such defense in every foreseeable scenario in the future.”

Steinitz was also asked about the increasingly tense relationship between Israel and Turkey and whether the major Greek arms deal could further inflame tensions with Ankara. “The tension is already high enough, perhaps too high,” he said, adding that Israel had never restricted its defense cooperation with Greece because of Turkey.

“I very much hope that the Turks will restrain themselves, rhetorically as well, but certainly in practical terms, and that we won’t reach some kind of military confrontation with them.”

Steinitz argued that Israel’s actions have been largely reactive. “Israel responds only to provocations, and even that not always,” he said. “It is very clear to any reasonable person who the aggressor is: Turkey, not Greece; Turkey, not Cyprus.” He described the alleged provocations as a recurring pattern.

Turning to Iran, Steinitz offered a notably cautious assessment of the current situation. “I don’t believe the war with Iran is over,” he said. “There is a reasonable chance of another outbreak.”

He added that the Iranian regime is currently under enormous pressure, using the colloquial expression that the Iranians are under “atomic” pressure.

His comments come amid continuing concerns in Israel over Iran’s nuclear capabilities and its ability to rebuild military and strategic capabilities following the recent confrontation.

Despite celebrating Rafael’s strong performance, Steinitz pointed to one major concern: the company’s outstanding government debt. “With all the celebration over the results, I have to point out one cloud hanging over everything,” he said. “The Israeli government and Defense Ministry currently owe Rafael a very large amount — NIS 7 billion. There has never been such a debt.”

Steinitz warned that the outstanding payments could affect Rafael’s ability to maintain its position as a global defense-technology leader. He also argued that the company needs greater flexibility, including privatization measures that would reduce regulatory restrictions.

“For Rafael to continue to be a leading global company in science and technology, it also has to undergo privatization processes that will contribute to its flexibility and remove regulatory restrictions from the company and its employees,” he said.

The comments underscore the unusual position Rafael currently finds itself in: record international demand and soaring sales on one hand, but billions of shekels owed to the company by the Israeli government on the other.