Israeli defense firm Solrom shares soar more than 30% after successful laser test

Shares of Israeli defense company Solrom surged 33.5% on the Tel Aviv Stock Exchange on Wednesday after the IDF successfully tested the firm’s newly developed QCL laser-based long-range target-marking system.

Founded in 1987, Solrom employs about 150 people in Israel and specializes in the development and production of electrical, electromechanical, and control systems for military clients worldwide. Major clients include the Israeli military’s air, ground, naval and space divisions. Itay Moldovsky and David Maimon are the company’s controlling shareholders.

Solrom CEO Matan Rabin explained the importance of the successful military test of the laser-based system.

“For the first time, we’ve demonstrated the operational feasibility of a fully developed system designed specifically for defense needs. This milestone moves us closer to receiving our first official order, with additional deals likely to follow. The test’s success reinforces Solrom's position as a leading QCL laser company providing advanced solutions for multiple military applications,” Rabin stated.

The innovative system allows the user to mark a specific target without the object knowing it is being tracked. This unique advantage is achieved by ensuring the laser marking is visible only to the unit using the company’s system.

Solrom’s stock also rose following another successful IDF test of the company’s self-marking system, designed to prevent friendly fire incidents among soldiers and other security personnel.

Dozens of IDF soldiers have been killed in friendly fire incidents throughout the war against Hamas in Gaza, which the Israeli government recently renamed “War of Redemption.”

Solrom is reportedly in negotiations with the Israeli military for an initial purchase order. If finalized, the deal could pave the way for significantly larger follow-up contracts. Because the IDF is often seen by other nations as a testing ground for cutting-edge technologies, Solrom’s new laser-based system could eventually find new markets worldwide.

When Solrom was first listed, the company was valued at roughly NIS 130 million ($34 million). A year later, its market capitalization had climbed to about NIS 485 million ($127 million). Overall, Solrom’s share price has surged 47% since the start of 2025.

Defense companies in Israel are pioneers in laser-based defense technologies. Last month, the Israeli Defense Ministry announced that the high-power laser system, Iron Beam, was operational. The platform, which was developed by the Israeli military company Rafael, is an aerial defense system that is designed to intercept enemy missiles and drones.

While Israel already has multi-layered aerial defense systems, including the Iron Dome, David’s Sling and the Arrow, they are expensive to operate. For instance, each Iron Dome interceptor missile costs around $50,000. By contrast, the laser-based Iron Beam system costs only a fraction of that amount to operate.

The Israeli Defense Ministry predicted at the time that the Iron-based system would revolutionize the battlefield in the Middle East and beyond.

“We are at the beginning of a revolution that Israel is leading, and that will fundamentally change the battlefield,” the ministry stated. “The laser will break the economic equation and create a vast gap between the cost of interception – a few shekels – and the cost of the munitions being intercepted.”