Pap Tecnos Innovación, the Spanish subsidiary of the Israeli arms company, had one of its best years in 2024, almost tripling its revenue amid the Israeli invasion of Gaza and government condemnation. The government, a major client, has threatened to cancel one of the company's largest contracts: the supply of 1,680 Spike LR2 anti-tank missiles.
The Israeli company acquired the Spanish company Pap Tecnos in 2010 to establish a presence in Spain, and since then, this company, with a history dating back to 1996, has been managed by the Israeli group. The company has just released its annual accounts for the latest fiscal year (2024), reporting revenue of 24.5 million euros, nearly three times the 9.3 million euros recorded in 2023.
The positive revenue growth has also impacted the profit, with the company reporting a net income of 554,920 euros, an increase of almost 75% compared to the previous year. Additionally, the company signed contracts worth over 20 million euros during the same period, with only 300,000 euros related to maintenance tasks in Spain.
However, these figures pale in comparison to the significant contract signed by the government for the Spike missiles, amounting to 237.5 million euros. The Ministry of Defense indicated earlier this month that it would cancel this program, but has yet to take official action. The report does not mention a possible cancellation of the allocation or its impact on the company. Furthermore, there is no reference to the penalty the government would have to pay if it cancels the contracts.
The only reference to Defense is found in the "market risk" section, where the company highlights that the "budgetary constraints of the Spanish Ministry of Defense do not allow for significant activity in the sector with new major programs." The company has significantly reduced its financial assets, mostly deposits, from 56 to 14 million euros.
The company's roadmap includes the internationalization of its business, which has yielded "positive results to date" for the defense company. "This allows us to look to the medium and long term with very reasonable optimism and plan efforts and necessary investments well in advance and with caution." The group's administrators have prepared a three-year strategic plan that "ensures stability and future" for the company.
There is still uncertainty about the future of the 45 Eurofighter laser designation pods, which were awarded at the end of 2023 directly to Rafael, the parent company of Pap Tecnos, for over 200 million euros.
These pods are the elements that allow pilots to lock onto targets and fire laser-guided ammunition with maximum precision, enhancing the effectiveness of combat aircraft, in which the Israeli company is a leading technological player.
As a result, the Air Force has consistently turned to the company for aircraft modernization. Currently, this is the only high-tech Israeli program on which the Department led by Margarita Robles has not commented on its future, amidst the Armed Forces' disconnection from Israeli technology following international pressure due to violations of international law in the Gaza assault.