Israeli defense contractor Rafael posted record sales of nearly $2.6 billion (NIS 942 billion) in fiscal year 2018, up from around $2.3 billion the year before.

Rafael’s sales finished at $2.592 billion, an increase from a record $2.258 billion in 2017, and its net profits after taxes were $133 million, an increase of $9 million from the previous year.

“These achievements reflect our unique ability to combine our work as a defense high-tech company with critical contribution to Israel’s security while posting profit and international business growth,” Rafael Chairman Uzi Landau said.

Orders fell slightly to $2.6 billion from a record-high $3 billion.

The company’s backlog for the year was $6.7 billion, which CEO Yoav Har-Even said would enable Rafael ” to develop, manufacture and grow with additional M&A.”

The largest employer in northern Israel, Rafael develops and manufacturers advanced defense systems for the Israel Defense Forces, and exports around the world.

Rafael is the developer of the Iron Dome and David’s Sling air defense systems and the “C-Dome” system that was declared operational by the Israel Navy in November 2017.

Approximately 45 percent of Rafael’s sales are intended for export, and the U.S. Army decided last year to purchase two Iron Dome batteries and equip its Abrams tanks with Rafael’s Trophy Active Protection systems.

In July, Rafael and U.S. defense giant Lockheed Martin signed a memorandum of understanding to market the Smart, Precise Impact and Cost-Effective (SPICE) guidance kits. In May, the Australian Army chose Rafael’s Spike LR2 anti-tank guided missiles for its new Rheinmetall Boxer combat reconnaissance vehicles.

In February, Latvia’s armed forces said Spike anti-tank guided missiles would be procured for its CVR-T armored vehicle fleet.