RP Optical Lab’s climb from niche optics to a major defense supplier says a lot about how specialized photonics and integrated electro-optical systems are quietly changing modern security. Let’s dig into the company’s journey, standout tech, investment moves, and the geopolitical winds blowing in its favor.
From Medical Optics to Defense Systems
RP Optical Lab, founded by Ran Carmeli and Dr. Pavel Rashidko, started out in medical and border-security optics. As customers began asking for complete camera systems and platform specs, the company quickly shifted toward the security market.
Now, RP focuses on electro-optical systems—lenses, cameras, sensors, and radars. You’ll find their gear on drones and big platforms used by IAI, Elbit, and other defense players. The Amaryllis lens really sums up their style: long-range detection, built to survive rough conditions, and designed to keep costs reasonable even when things get shaky or temperatures swing wildly.
Flagship Capabilities: Amaryllis and the EO Suite
Amaryllis can spot targets from tens of kilometers away. Their broader EO suites blend optics with sensors and radar, giving platforms a ready-to-go solution.
- Advanced lenses and cameras
- High-sensitivity sensors and radar modules
- Drone and ground-platform integration
Strategic Growth and Ownership
The founders work well together: Rashidko handles the technical side and lens design, while Carmeli drives business, sales, and fundraising. After several funding rounds, each founder still holds about 11% of the company, which shows they’re in it for the long haul.
Strategic deals and expanding beyond pure optics into integrated systems have fueled their growth.
Investment Milestones and Acquisitions
AP Partners picked up a 50% stake in 2019, which helped RP scale up. In 2024, Manor Evergreen came in with 40%, widening the investor circle. The group also bought Radomatics, branching out into fuses, homing heads, and vehicle-protection sensors.
- AP Partners: 50% stake (2019)
- Manor Evergreen: 40% stake (2024)
- Acquisition: Radomatics (defense radar tech)
Financial Performance and Market Dynamics
In 2025, RP reported about $45 million in revenue and a net profit of roughly $10 million. Israel made up around 64% of sales, and about 40% of revenue came from Elbit, showing a strong local base but clear international demand too.
The stock price jumped after Russia’s invasion of Ukraine, reflecting a surge in global defense spending. RP’s market value shot up from NIS 575 million at IPO to around NIS 3 billion in just a year. Investors clearly believe in their niche.
Macro Drivers
Ongoing conflicts and shifting geopolitics keep demand high for rugged, integrated EO systems—especially for drones and large platforms.
Supply Chain Resilience and Innovation
When a germanium shortage hit—a key thermal lens material—RP switched to metal alloys to keep performance and costs in check. That’s a pretty good example of their adaptive R&D and ability to handle tricky supply situations.
Management has been professionalized, moving away from single-person dependence. They’re building a leadership pipeline that should help with both organic growth and future acquisitions.
Material Substitution and R&D
By swapping out germanium for metal alloys, RP managed to keep clients like IAI and Elbit happy, sticking to performance targets and timelines even when supplies got tight.
Leadership, Ethics, and Strategic Outlook
Ethical debates about supplying weapon systems aren’t going away, but Carmeli defends supporting allied nations and sees ongoing conflict as a practical reality that keeps demand steady for high-end EO systems. The long-term goal is to become a stable defense leader through organic growth and smart acquisitions.
Governance and Long-Term Vision
Professionalizing leadership and avoiding over-reliance on any one person sits at the heart of RP’s plan. They’re focused on reliable performance, paying attention to export controls and monitoring end use.
Implications for the Defense Electronics Ecosystem
RP Optical Lab’s story shows how a small photonics firm can grow into a major defense supplier. They deliver integrated camera systems and platform-level specs, working closely with big integrators.
For researchers and policymakers, it’s a case study on the fragility of critical materials, how geopolitics can drive demand, and why resilient, end-to-end defense electronics matter.
Broader Takeaways
Geopolitical shifts keep shaking up defense budgets everywhere. Companies that blend advanced optics with smart system integration have a real shot at leading the next wave of global security tech.
If they can also stay nimble with their supply chains, they’re even better set to meet changing demands around the world.
Here is the source article for this story: In focus: Since RP Optical Lab set it sights on defense, business is booming