Elbit's $100M for IDF 5.0. Goodfire hits $1.25B. El Al faces ₪121M reckoning.

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Elbit's $100M for IDF 5.0. Goodfire hits $1.25B. El Al faces ₪121M reckoning.

Re: February 9, 2026 in Israel - and what it all means for investors at home and abroad.

Sophia Tupolev

Feb 09, 2026

Quick takes:

Tech & Defense: Elbit Systems secures a $100 million contract with the Ministry of Defense; Goodfire raises $150 million at a $1.25 billion valuation.
Insurance: Harel Insurance receives a top-tier Aaa.il rating; Ayalon Insurance receives an initial ilAA rating.
Real Estate: Migdal Insurance extends a ₪200 million credit facility to Shai Hai Group; Mitzpe HaShofet wins a RAMI tender in Safed.
Energy: Controlling shareholders of Prime Energy purchase ₪3.84 million in shares; Electreon signs its first commercial wireless charging deal.
Regulation: The Competition Authority notified El Al of a planned ₪121 million fine, while the Consumer Protection Authority fined Gorilla College ₪4.9 million.
Macro: Mizrahi-Tefahot sees no immediate inflation threat despite 3% wage growth.

Defense & Technology

Elbit Systems (TASE:ESLT) has secured a series of contracts totaling $100 million from the Ministry of Defense (IMOD) to lead the ‘Fifth Generation’ of the IDF’s digital transformation.

The project focuses on C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance). Elbit will integrate AI to accelerate ‘sensor-to-shooter’ loops and manage borders using lessons learned from the recent ‘“First Digital War.” The stock has climbed 14.4% year-to-date, reflecting the global appetite for battle-proven digitization.

Our take: This contract cements Elbit’s role as the ‘operating system’ of the IDF. While hardware gets the headlines, the high-margin recurring revenue comes from the software that connects the tanks to the drones.

Goodfire has emerged from stealth with a $150 million Series B at a $1.25 billion valuation. The round was led by B Capital, with participation from Menlo Ventures and Lightspeed.

Deep learning models are ‘black boxes’ - even their creators often don’t know why they make specific decisions. Goodfire’s ‘Ember’ tool allows researchers to visualize and debug the internal logic of AI models. They notably identified biological markers for Alzheimer’s within a model that human researchers had missed.

Insurance

The Israeli insurance sector is flexing its muscles with two major rating upgrades today.

Harel Insurance (TASE:HARL) was upgraded to Aaa.il by Midroog. With ₪139 billion in managed assets and a 21% market share, Harel is being recognized for its dominant position and diversified revenue streams.

Ayalon Insurance (TASE:AYAL) received an ilAA rating from S&P Maalot. a subsidiary of S&P Global Ratings. Analysts cited the company’s implementation of IFRS 17 and the acquisition of WeSure as key drivers for its stable capital outlook.

Real Estate

Migdal Insurance (TASE:MGDL) is deepening its exposure to residential development.

Migdal provides a ₪200 million financing package to Shai Hai Group (owned by Ofer Biton). Beyond interest, Migdal gets options to buy 12% of the company, a ‘loan-to-own’ strategy that provides upside equity participation.

Mitzpe HaShofet LTD has won a RAMI tender in Safed’s Ramot Razim South neighborhood.

The company will pay ₪1.5 million (excluding development costs) for the land to construct 120 assisted living units on a 3,100 sqm plot. This highlights the continued demand for senior living facilities in the periphery, even amidst security tensions in the north.

Energy

Prime Energy (TASE:PRIM) sees controlling shareholders Lahav LR (TASE:LAHAV) and Yaron Kikoz buying ₪3.84 million worth of stock off-market at 25.6 NIS per share. This follows a similar buy-in alongside institutional giants Phoenix and Menora, signaling that insiders believe the stock is undervalued relative to its ₪2 billion project pipeline.

Electreon (TASE:ELWS) has signed its first commercial agreement to deploy wireless charging for a taxi fleet. A binding agreement with Castel Taxis to install wireless charging pads at taxi ranks (starting with two sites in Tel Aviv). The business model is ‘Charging as a Service.’ Instead of buying hardware, the taxi fleet will pay a fixed monthly fee for the ability to charge while waiting for passengers, eliminating downtime. Shares climbed 2.5% on the news, as investors welcomed the shift from pilot projects to recurring commercial revenue.

Regulation

El Al (TASE:ELAL) is in the crosshairs. The Competition Authority notified the carrier of a planned ₪121 million fine, the maximum financial sanction permitted by law.

The regulator alleges El Al exploited its status as a declared monopoly between October 7, 2023, and May 2024 (when foreign carriers halted operations) to charge “unfair and excessive prices.”

El Al rejected the claims “outright,” arguing that even the Authority’s own data, showing a 16% average price hike in Economy and Premium, does not meet the legal threshold for “excessive pricing” and ignores the operational reality of maintaining an air bridge during wartime.

El Al planes, archive | Credit: Shutterstock

The Consumer Protection Authority also fined Gorilla College ₪4.9 million. The regulator found that sales reps were tricking students into taking long-term loans from non-bank lenders, disguised as “eligibility checks” for scholarships.

Macro

Mizrahi Tefahot (TASE:MZTF) Chief Strategist Yoni Fanning released a calming note on inflation. Despite a tight labor market and 3% annual wage growth, Fanning believes inflation will remain checked. However, he warns that the strengthening Shekel is beginning to pressure local exporters.