Surging global interest in Israel's Iron Beam laser system boosts directed-energy defense plays like Lockheed Martin (LMT) as NATO seeks cheap drone solutions.
Alpha Score of 39 reflects weak overall profile with moderate momentum, moderate sentiment. Based on 2 of 4 signals – score is capped at 75 until remaining data ingests.
Global interest in the Israeli-made Iron Beam laser weapon system has surged over the past year, a senior Israeli missile defense official told Business Insider. Moshe Patel, who directs the Israeli Missile Defense Organization, said countries – many in Europe – have requested information and performance data on the system. The laser, built by Rafael Advanced Defense Systems, can destroy drones and cruise missiles at "the speed of light" with a per-engagement cost near zero, according to Rafael. It was delivered to Israeli forces in December and has seen limited combat, intercepting dozens of Hezbollah drones in 2024.
The interest comes as European and NATO militaries confront increasing drone incursions. NATO has scrambled fighter jets and fired expensive air-to-air missiles to take down cheap drones, raising questions about cost effectiveness. Senior NATO officials have said building low-cost air defenses is a priority, and Iron Beam fits that profile, Patel indicated.
For the defense sector, the shift toward directed-energy weapons opens a new procurement channel. Lockheed Martin's HELIOS system, a high-energy laser for naval and ground use, is one of the most advanced U.S. programs in this space. The Pentagon's Joint Laser Weapon Systems program awarded multimillion-dollar agreements last month.
Patel did not name the countries interested. An Israeli defense ministry spokesperson told BI that arms sales are "a cornerstone" of the ministry's strategy and are meant to boost the economy and shape foreign policy. The spokesperson said the sales prepare Israel for "a demanding decade ahead on the security front."
Lockheed Martin is the largest publicly traded defense contractor with a directed-energy product in production. The company's Alpha Score from AlphaScala is 44 out of 100, a Mixed rating, reflecting its dominant position in defense and the uncertainty around directed-energy adoption. LMT stands to benefit if the Iron Beam surge translates into procurement contracts for similar systems.
Israel is not the only country working on such weapons. The US and several European countries have directed-energy projects. Asian militaries also have their own programs. Iron Beam's combat deployment, however, gives it operational credibility that rivals lack, Patel indicated.
European countries have also looked to Ukraine for cheap interceptor drones, a technology Kyiv pioneered against Russian Shaheds. That approach competes with laser systems. It also highlights the broader market for low-cost air defense.
Iron Beam has entered serial production, Patel said, and is "in the process" of being fully deployed.
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