RADA Electronic Industries Ltd. (NASDAQ: RADA) disclosed its revenue guidance for 2022 and its longer-term growth strategy. The company has also shared its recent performance. RADA confirmed that 2021 was proven to be the best year ever for the company as it has reported revenue of $117 million. It is indicating 54% YoY growth.
RADA Electronic Industries disclosed that the total revenue guidance for 2022 is $140 million. It reflects an increase of 20% YoY. It covers $90m in revenue from the U.S. with over-90% budget visibility and eliminates any book-to-ship revenue, which offers upside to the guidance. The company set the target of over $250 million in organic revenue in 3-4 years. It suggests that the company is expecting a surge in growth over the coming years.
Furthermore, RADA revealed that its non-U.S. derived revenues are likely to reach parity with that of U.S. sourced revenues by the end of 2024, and M&A is projected to become a profitable part of RADA’s overall growth strategy in the near term. In addition, APS revenues, which are not included in the 2022 guidance, are likely to be accretive from 2023 onwards.
The CEO of RADA remarked that the company is continue to be optimistic about the company's prospects for great growth in 2022. Three variables contribute to the company’s $140 million revenue forecast. The SHORAD and Point-Defense market in the United States is stabilizing, and 90% of our $90 million predictions for 2022 are already accounted for in defense budget line items, with some already in the company’s portfolio.
The company’s CEO further added that because of the APS segment, the company expects revenue growth to pick up in 2023. Furthermore, while non-U.S. revenues accounted for a quarter of its revenue in 2021, RADA expects them to grow faster in the coming years, eventually catching up to its U.S. revenues by the end of 2024. In the long run, RADA’s organic revenue growth goal is to exceed $250 million in the next three to four years.