ESLT

Elbit Systems Ltd.

Next est. report 2026-11-24 · BMO

Drones '26: Drone OEMs & C-UAS Drones '26: Subsea Drones & UUVs Modern Warfare '26: ISR Modern Warfare '26: Lasers & Directed Energy Weapons Modern Warfare '26: Military Connectivity & Tactical Networks Modern Warfare '26: SONAR & Subsea Systems Modern Warfare '26: Sensors, Targeting & Battlefield Perception Modern Warfare '26: Warfare in Iran

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Overview

Elbit Systems Ltd. develops and supplies advanced defense, homeland security, and commercial aviation systems globally, including drones, electro-optics, and C4

Elbit Systems Ltd. develops and supplies advanced defense, homeland security, and commercial aviation systems globally, including drones, electro-optics, and C4ISR. For 2025, Israel contributed 32% of revenues, Europe 27%, North America 21%, and Asia Pacific 16%. The company primarily sells its cutting-edge solutions to governments and defense contractors worldwide.

What They Do (Plain English & Analogies): Elbit Systems is like a high-tech workshop for defense and security, building advanced gadgets and systems for armies, navies, air forces, homeland security, and even commercial planes. They provide everything from the 'eyes' (like advanced cameras and night vision for soldiers and satellites) and 'brains' (command and control systems, cyber defense, AI-powered solutions) to the 'muscle' (precision-guided missiles, artillery, drones, electronic warfare systems, and even futuristic high-power lasers) for modern warfare and security. They equip military and security forces with cutting-edge technology to defend their countries and populations, ensuring soldiers can see at night, pilots can fly safely, and borders are protected.
Very Brief History: Elbit Systems was founded in 1966 in Haifa, Israel, as Elbit Computers Ltd., initially focusing on computer-based military systems. It spun off into independent companies in 1996, with Elbit Systems concentrating on defense electronics. The company expanded significantly through strategic mergers and acquisitions, including El-Op Electro-Optics Industries, Elisra, Tadiran, and IMI Systems, broadening its capabilities across various defense sectors and listing on NASDAQ in 1999.
"Street Stereotype": Elbit Systems is generally perceived as a leading Israeli defense contractor, highly regarded for its advanced, 'battle-proven' technology and strong research and development capabilities. Investors and analysts often view it as a key beneficiary of rising global defense budgets and a significant player in the international defense market, particularly in areas like unmanned systems, electro-optics, electronic warfare, and emerging directed energy solutions. However, it also faces scrutiny due to its involvement in the Israeli-Palestinian conflict.
Subsidiaries On Linked In*: Elbit Systems of America, Elbit Systems UK, Elbit Systems Deutschland, Elbit Systems Sweden, Elbit Systems Switzerland, AEL Sistemas.
Customer Sectors & Example Clients: Elbit Systems' customers are primarily in the defense, homeland security, and commercial aviation sectors. Specific example clients include governments and defense ministries worldwide, such as the Israeli Ministry of Defense (IMOD), the U.S. Army, and various European defense ministries. The company also serves U.S. Customs and Border Protection (CBP), and partners with defense contractors like BAE Systems Hägglunds, General Dynamics Ordnance and Tactical Systems (GD-OTS), KNDS, and Diehl Defence.
New Customers / Segments They'Re Targeting: Elbit Systems is primarily targeting continued growth in Europe, which they expect to be a meaningful growth engine, followed by Asia Pacific. They are also focusing on expanding their portfolio in precision-guided munitions and Night Vision solutions, and heavily investing in disruptive R&D initiatives, including advanced AI capabilities, to drive future profitable growth. A significant new segment is high-power laser solutions for both airborne and ground applications, particularly for counter-drone and cruise missile defense, where they aim to be the world's leading supplier.
Supply Chain And Sourcing Geographies: Elbit Systems operates a global supply chain with manufacturing and development facilities in Israel (headquarters, R&D, Ramat Beka facility for ammunition/munition production, electronic assemblies), the United States (manufacturing in Alabama, South Carolina, facilities in Texas, Pennsylvania, New Hampshire, Virginia, Florida, including a Roanoke County site for Night Vision expertise and image intensifier manufacturing), and Europe (expanding production facilities in Germany, Sweden, Romania, and existing operations in the UK). AEL Sistemas is based in Porto Alegre, Brazil. The company emphasizes a vertical integration strategy to reduce reliance on external suppliers and control its destiny.
Sales Geographies And Expansion Plans: For the full year 2025, Europe contributed 27% of revenues, North America 21%, Asia Pacific 16%, and Israel 32%. Elbit Systems expects Europe to be a meaningful growth engine going forward, followed by Asia Pacific. The company is making significant strategic CapEx investments to expand its production facilities globally, especially in Europe (Germany, Sweden, Romania) and the U.S., to address growing global capacity constraints and meet demand.
How Key Themes May Help/Hurt: The buildout of 'Defense Primes / Large-Scale Integrators' significantly helps Elbit Systems. As a leading global defense prime, Elbit is well-positioned to capitalize on the surge in demand for layered counter-UAS and electronic warfare systems, driven by rising DoD and NATO budgets. The company's strong offerings in UAVs (Hermes series), electronic warfare, and emerging directed energy solutions directly align with the need for interoperable detection-to-kill chains. Elbit's heavy investment in AI capabilities across multiple platforms also positions it to benefit from the theme's focus on AI-driven operations. However, the theme also presents risks, such as the potential for low-cost commercial jammers and AI edge kits to commoditize C-UAS margins, and the inherent integration complexity of multi-vendor and AI-based systems potentially limiting deployment speed and effectiveness.

3 Main Long-Term Bull Details

Record and Growing Backlog with International Diversification: Elbit Systems reported a record order backlog of $28.1 billion as of December 31, 2025, representing a $5.5 billion increase from 2024. Approximately 72% of this backlog is from outside Israel, with Europe expected to be a primary growth engine, providing strong revenue visibility and reducing reliance on any single country's defense budget.
Technological Leadership and R&D Investment in Emerging Areas: The company consistently invests heavily in disruptive R&D, exceeding $500 million in 2025, focusing on advanced AI capabilities, precision-guided munitions, Night Vision solutions, and breakthrough directed energy weapons like airborne high-power lasers. This commitment to innovation positions Elbit as a market leader in critical and evolving defense domains.
Strong Financial Performance and Operational Excellence: Elbit Systems delivered double-digit growth in revenues (16% in 2025), operating profit, and EPS, along with record free cash flow exceeding $0.5 billion in 2025. This consistent financial strength, coupled with expanding production capacity globally and operational leverage, demonstrates the company's ability to translate demand into profitable growth and create long-term stakeholder value.

3 Main Long-Term Bear Details

Geopolitical Risks and Regional Instability: Elbit's significant presence and primary base in Israel expose it to heightened geopolitical risks and regional conflicts, which can lead to operational disruptions and potential international scrutiny or divestment actions. While international backlog is growing, Israel still contributed 32% of revenues in 2025.
Dependence on Government Budgets and Procurement Cycles: As a defense contractor, Elbit's revenue and growth are heavily reliant on government defense budgets and often lengthy procurement cycles. Fluctuations in these budgets or political shifts could lead to reduced outlays, impacting future orders and revenue.
Intense Competition and Rapid Technological Obsolescence: The defense technology sector is highly competitive and characterized by rapid technological advancements. The risk of competitors developing superior or lower-cost solutions, or new technologies quickly rendering existing systems obsolete, could erode Elbit's market share and profitability, particularly in areas like counter-UAS where low-cost commercial solutions could commoditize margins.

Competitors And Differentiation: Elbit Systems faces competition from a range of defense and aerospace companies. Key competitors include major defense primes like Lockheed Martin (especially with its HIMARS/GMARS system for rocket artillery), Thales, Kratos, General Atomics, Northrop Grumman, and Israel Aerospace Industries (IAI). Other competitors mentioned include Bharat Electronics, Saab, Esterline, HENSOLDT Optronics, Rafael (for Active Protection Systems like Trophy), and NORINCO MLRS (for rocket artillery). Elbit differentiates itself through: * **Technological Leadership & R&D**: Heavy investment in disruptive R&D, including AI enhancements and advanced high-power laser solutions, to predict future market demand and offer cutting-edge, battle-proven systems. * **Integrated Solutions**: Providing comprehensive platform-level solutions that combine sensors, communications, command-and-control software, and weapons integration. * **Vertical Integration**: A strategy to reduce dependency on external suppliers and control key technologies in-house, such as diodes and detectors. * **Agility and Open Architecture**: Systems like the PULS rocket artillery are noted for their modularity, open architecture allowing integration of different munitions, and quicker delivery timelines compared to some competitors. * **Cost-Effectiveness**: The PULS system, for example, offers similar capabilities at a more affordable price with additional features.
Recent Performance & What The Market'S Focused On: Elbit Systems reported strong Q4 and full year 2025 results, with full year revenues increasing by 16% to $7.939 billion and quarterly revenues surpassing the $2 billion mark for the first time. The company achieved double-digit growth across all key metrics: sales, operating profit, earnings per share, and backlog, which grew by $5.5 billion to $28.1 billion. Free cash flow also reached a record $553 million. The market is focused on Elbit's ability to sustain this strong international order momentum, particularly in Europe, and effectively convert its substantial backlog into revenue and profit. Key areas of interest include the continued expansion of margins, the performance of the Aerospace segment, and the progress and new orders for emerging technologies like directed energy systems and AI enhancements.
Brands And Revenue Segments: Key brands include PULS (Precise and Universal Launching System), Iron Fist (Active Protection System), DIRCM (Directed Infrared Countermeasures), and Hermes (Unmanned Aircraft Systems). Revenue segments and their Q4 2025 year-over-year revenue changes were: * C4I and Cyber: Increased by 19% * ISTAR and EW: Increased by 39% * Land: Increased by 22% * Elbit Systems of America: Increased by 9% * Aerospace: Decreased by 14%

Bull / Bear Details

Elbit Systems is a leading global defense prime positioned for sustained double-digit growth, driven by a record $28.1 billion international backlog and robust

Thesis

Elbit Systems is a leading global defense prime positioned for sustained double-digit growth, driven by a record $28.1 billion international backlog and robust demand for advanced solutions. Strategic CapEx investments in global production capacity, including AI-integrated facilities, and continuous R&D in disruptive technologies like high-power lasers, enhance operational efficiency and profitability, leading to significant margin expansion. (Updated: 2026-08-10)

Bull case

Elbit's record $28.1 billion backlog as of December 31, 2025, a $5.5 billion increase from 2024, provides exceptional revenue visibility. With 72% derived from outside Israel and Europe as a primary growth engine, this international demand underpins sustained double-digit revenue, operating profit, and EPS growth, demonstrating strong market capture and future potential.
The company's leadership in high-growth defense areas is evident through significant R&D investments (over $0.5 billion) in disruptive technologies. This includes securing contracts for airborne high-power lasers, positioning Elbit as a world leader in directed energy weapons against drone threats, and the PULS rocket artillery system surpassing a $2 billion backlog, highlighting its market dominance.
Elbit demonstrates strong operational excellence, achieving 9.8% non-GAAP operating income in Q4 2025 and record free cash flow exceeding $0.5 billion. Strategic CapEx is increasing to $300 million in 2026 to expand global production capacity, incorporating advanced robotics and AI, and strengthening vertical integration, ensuring efficient backlog conversion and continued margin expansion.

Bear case

Despite international diversification, Israel contributed 32% of Elbit's 2025 revenues, exposing the company to heightened geopolitical risks and regional instability. Management noted that "as one conflict ends, another begins" in the Middle East, introducing potential operational disruptions and volatility in domestic demand, requiring sustained international expansion to mitigate this concentration risk.
The Aerospace segment experienced a notable 14% year-over-year revenue decrease in Q4 2025, primarily due to reduced training and simulation sales in Europe. Additionally, the conversion of parliamentary approvals for systems like PULS in Greece and Germany into firm backlog and revenue can be protracted, as management confirmed these are "not a contract yet," indicating potential delays.
The defense technology sector is highly competitive and characterized by rapid technological advancements. The risk of competitors developing superior or lower-cost solutions, or new technologies quickly rendering existing systems obsolete, could erode Elbit's market share and profitability, particularly in areas like counter-UAS where low-cost commercial solutions could commoditize margins.

Bull / Bear Case

Bear Case: Despite international diversification, Elbit's 32% revenue contribution from Israel in 2025 exposes it to geopolitical risks and regional instability, which management acknowledges as ongoing. The Aerospace segment experienced a notable 14% year-over-year revenue decrease in Q4 2025, primarily due to reduced training and simulation sales in Europe, indicating potential weakness in certain areas. Furthermore, the conversion of parliamentary approvals for key systems like PULS in Greece and Germany into firm contracts and revenue can be protracted, as management confirmed these are "not a contract yet," introducing potential delays and uncertainty. The defense technology sector is highly competitive, with rapid advancements and the risk of competitors developing superior or lower-cost solutions, potentially eroding Elbit's market share and profitability, especially in areas like counter-UAS where low-cost commercial solutions could commoditize margins.
Bull Case: Elbit Systems is positioned for sustained double-digit growth, underpinned by a record $28.1 billion backlog as of December 31, 2025, with 72% derived from international customers, particularly Europe, ensuring strong revenue visibility. The company demonstrates technological leadership through significant R&D investments (over $0.5 billion) in disruptive areas like airborne high-power lasers and the highly successful PULS rocket artillery system, which has a backlog exceeding $2 billion. Operational excellence is evident in its 9.8% non-GAAP operating income in Q4 2025 and record free cash flow over $0.5 billion. Strategic CapEx is increasing to $300 million in 2026 to expand global production capacity, incorporating advanced robotics and AI, and strengthening vertical integration to efficiently convert backlog and drive continued margin expansion.
More Compelling & Why: Bear. Elbit Systems' valuation appears significantly stretched, with a P/E ratio of approximately 67-69x compared to the Aerospace & Defense industry average of 35.99x - 47.31x and ESLT's own 5-year average of 39.14x - 43.18x. While growth is strong, this premium valuation already prices in substantial future success. A significant correction in the stock price, bringing multiples closer to industry or historical averages, or a material upward revision in long-term earnings guidance, would be necessary to flip my view to bullish.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
New Large-Scale International Defense Contracts, particularly in Europe	Elbit's record backlog and strong international demand, especially from Europe, are key drivers of future revenue growth. Securing large contracts, like the recent $2.3 billion and $1.6 billion deals, provides long-term revenue visibility and confirms market leadership.	Total value of new international contracts announced within a quarter, with a focus on Europe. Specific contract wins for the PULS rocket artillery system or other key platforms like Iron Fist and DIRCM.	Bullish: Announcement of new international contracts exceeding $1 billion, or multiple smaller contracts totaling over $500 million within a quarter, with a strong European component. Bearish: Lack of significant new contract announcements for two consecutive quarters, or contract values below historical averages.	Company press releases, investor conference calls, SEC filings (Form 6-K), defense ministry announcements (e.g., German Ministry of Defence, Hellenic Parliament approvals).	Defense news websites (e.g., Defense News, European Defence Review), government procurement portals (e.g., Tenders Electronic Daily for EU contracts).	Bloomberg Terminal: Defense contract announcements and news sentiment; Refinitiv Eikon: Defense sector contract data and analysis.
Quarterly Order Backlog Growth and International Contribution	A growing order backlog, particularly from international customers, underpins Elbit's sustained revenue potential and indicates strong global demand for its defense systems. The current backlog of $28.1 billion provides significant future revenue visibility.	Quarter-over-quarter and year-over-year growth rates of the total order backlog. The percentage of backlog derived from outside Israel (target >70%). Backlog scheduled for performance in the next 12-24 months.	Bullish: Quarterly backlog growth exceeding $1.5 billion, with international orders contributing significantly (e.g., >70% of the increase). Bearish: Quarterly backlog decline, or international backlog growth slowing significantly below expectations.	Company earnings reports, investor presentations, and conference call transcripts (e.g., Q1 2026 earnings call, expected May 2026).	Company investor relations website (for published financial reports).	FactSet: Historical and projected backlog data; S&P Capital IQ: Financial models and analyst estimates for backlog.
Strategic Capital Expenditure (CapEx) and Production Capacity Expansion Milestones	Elbit's increased CapEx and expansion of production facilities are critical to meeting growing global demand and converting its record backlog into revenue. Successful operationalization of new facilities will directly impact future delivery capabilities and revenue growth.	Announcements regarding the progress and operationalization of new production facilities (e.g., Ramat Beka, Germany, Sweden, Romania, U.S.). Updates on the planned CapEx spend for 2026 (around $300 million).	Bullish: Confirmation of new facilities becoming operational ahead of schedule or on time, and CapEx spend meeting or exceeding targets. Bearish: Delays in facility operationalization or significant reductions in planned CapEx.	Company earnings calls and transcripts, investor presentations, company press releases. (e.g., Q1 2026 earnings call, expected May 2026).	Local government economic development news (for facility openings), industry trade publications covering defense manufacturing.	Industrial real estate data providers: Tracking new facility construction and operational status; Supply Chain Management platforms: Monitoring Elbit's manufacturing footprint expansion.
Deployment Milestones or New International Orders for High-Power Laser Systems	Elbit's advanced high-power laser systems, especially airborne solutions, are considered a 'breakthrough' against drone threats and a significant future revenue stream. Successful deployment and international contracts validate technological leadership and open new market opportunities.	Announcements of initial operational capability (IOC) for airborne or ground high-power laser systems outside Israel, or new international contracts for these systems exceeding $100 million in value. Specific mentions of 'operational' status or 'delivery' from the IMOD contracts.	Bullish: Announcement of successful deployment or new international orders for high-power laser systems (e.g., >$100 million). Bearish: Delays in deployment or lack of significant new international orders for two consecutive quarters.	Company press releases, investor conference calls, SEC filings (Form 6-K), defense industry news outlets (e.g., Defense News, Janes).	Defense industry news feeds (e.g., Breaking Defense, FlightGlobal), government defense procurement websites (e.g., European Defence Agency, USASpending.gov for relevant contract types).	Janes: Defense market intelligence reports on directed energy programs; IHS Markit Aerospace & Defense: Market forecasts and contract tracking for laser weapon systems.
Non-GAAP Operating Income Percentage and Margin Expansion Trajectory	Sustained expansion of non-GAAP operating income percentage indicates improved operational efficiency and profitability, which is crucial for justifying Elbit's valuation and demonstrating its ability to translate strong demand into shareholder value.	Quarterly non-GAAP operating income as a percentage of revenues. Management commentary on the drivers of margin expansion (e.g., backlog profitability, operational leverage, R&D efficiency).	Bullish: Non-GAAP operating income percentage consistently exceeding 10% and demonstrating a clear trajectory towards mid-teens (12-15%). Bearish: Non-GAAP operating income percentage declining or failing to show continued expansion.	Company earnings reports, investor presentations, and conference call transcripts (e.g., Q1 2026 earnings call, expected May 2026).	Company investor relations website (for published financial reports).	Bloomberg Terminal: Consensus analyst estimates for operating margins; FactSet: Historical and projected profitability metrics.

Key Reported Metrics, Reratings Triggers & Results3 rows

A growing, internationally diversified backlog provides exceptional revenue visibility and validates sustained demand for Elbit's advanced defense solutions. Hi

Last reported · 2026-08-11

Key reported metrics			Rerating thresholds
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date
Order Backlog		A growing, internationally diversified backlog provides exceptional revenue visibility and validates sustained demand for Elbit's advanced defense solutions. Hitting this threshold signals accelerating growth, solidifying its competitive position and justifying a premium valuation in the booming global defense market.	For Elbit Systems Ltd. (ESLT) to rerate higher, its order backlog for Q2 2026 needs to exceed $32.7 billion, representing a quarterly increase of over $2.5 billion from the Q1 2026 value of $30.2 billion. Additionally, international orders must contribute over 70% of this increase.	A growing, internationally diversified backlog provides exceptional revenue visibility and validates sustained demand for Elbit's advanced defense solutions. Hitting this threshold signals accelerating growth, solidifying its competitive position and justifying a premium valuation in the booming global defense market.	2026-08-11
Non-GAAP Operating Income		Consistently achieving a double-digit Non-GAAP Operating Income percentage, especially above the industry median, is crucial for ESLT's rerating. It demonstrates the company's ability to translate its substantial backlog into enhanced profitability and operational efficiency, validating the investment thesis and justifying a premium valuation.	For Elbit Systems (ESLT) to rerate higher, its Non-GAAP Operating Income percentage for Q2 2026 needs to exceed its Q1 2026 reported value of 10.1% and demonstrate a clear trajectory towards the mid-teens (12-15%) in the near to medium term. Specifically, achieving a Non-GAAP Operating Income percentage of 11% or higher in Q2 2026 would signal sustained profitability improvement and a positive step towards the rerating threshold.	Consistently achieving a double-digit Non-GAAP Operating Income percentage, especially above the industry median, is crucial for ESLT's rerating. It demonstrates the company's ability to translate its substantial backlog into enhanced profitability and operational efficiency, validating the investment thesis and justifying a premium valuation.	2026-08-11
Total Revenue		Hitting this threshold demonstrates accelerating growth and validates Elbit's ability to convert its record $30.2 billion backlog into revenue, justifying its premium valuation. This signals strong market capture in advanced defense systems and reinforces the investment thesis of durable growth and margin expansion.	For Elbit Systems Ltd. (ESLT) to rerate higher, its Total Revenue growth for Q2 2026 needs to exceed 15.5% year-over-year, significantly beating the current analyst consensus of approximately 12.7-13.05%. Additionally, the company must provide strong forward guidance for fiscal year 2026 revenue growth in the high teens (18% or more year-over-year), ideally aligning with the higher end of analyst projections.	Hitting this threshold demonstrates accelerating growth and validates Elbit's ability to convert its record $30.2 billion backlog into revenue, justifying its premium valuation. This signals strong market capture in advanced defense systems and reinforces the investment thesis of durable growth and margin expansion.	2026-08-11

Key Questions

Given Elbit's record $28.1 billion backlog and increased CapEx target of $300 million for 2026, will the company successfully operationalize new production faci

Given Elbit's record $28.1 billion backlog and increased CapEx target of $300 million for 2026, will the company successfully operationalize new production facilities, particularly Ramat Beka, and effectively convert this expanded capacity into accelerated double-digit revenue growth over the next quarter, while mitigating supply chain challenges?

Question 2: Can Elbit Systems sustain its strong non-GAAP operating income margin expansion trajectory, building on the 9.8% achieved in Q4 2025, through operational leverage and a favorable contract mix, or will the increased CapEx and potential competitive pressures temper further improvement in the upcoming quarter?
Question 3: Will Elbit's significant investments and contract wins in high-power directed energy systems, particularly airborne lasers, begin to translate into a material new stream of revenue and profit in the immediate future, thereby helping to offset the continued decline in the Aerospace segment and driving overall strategic expansion in the next quarter?

Earnings Transcript Summary2 rows

2026-03-17 · 2025Q4 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Sustaining strong financial performance and growth: Management highlighted achieving double-digit growth across all key metrics (sales, operating profit, EPS, backlog) and generating record free cash flow, expressing pride in these results and outstanding execution. 2. Strategic CapEx investments to expand global production capacity: The company is making significant strategic CapEx investments, increasing spend to around $300 million in 2026, to address growing global capacity constraints, particularly in Israel (Ramat Beka facility) and Europe (Germany, Sweden, Romania), to meet high demand for munitions and electronic assemblies. 3. Heavy investment in disruptive R&D initiatives, including AI and advanced solutions: Elbit continues to invest heavily in R&D (over $0.5 billion, 6.5% of revenues), focusing on expanding its portfolio of precision-guided munitions, Night Vision solutions, and disruptive AI capabilities to drive future profitable growth and reinforce market leadership, often with partial support from the Israeli Ministry of Defense.	Call Takeaway & ToneThe overall takeaway from the call is highly positive and confident. Elbit Systems delivered very strong Q4 and full-year 2025 results, achieving double-digit growth across all key financial metrics, including revenues, operating profit, EPS, and backlog, alongside record free cash flow. Management expressed confidence in the company's ability to sustain this growth, driven by a record $28.1 billion backlog, strategic CapEx investments in expanding global production capacity, and continuous heavy R&D in disruptive technologies like AI and high-power lasers. Europe is highlighted as a primary growth engine, and the company is actively addressing increased global demand and supply chain considerations. The tone was optimistic, emphasizing continued growth, profitability, and cash generation.	Prior Quarter'S Y/Y Growth By SegmentAerospace: decreased by 3% year-over-year. C4I and Cyber: increased by 14% year-over-year. ISTAR and EW: increased by 5% year-over-year. Land: increased by 41% year-over-year. Elbit Systems of America: decreased by 2% year-over-year.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Capacity and CapEx investments to meet unprecedented high demand and supply chain issues: Kristine Liwag inquired about the meaning of CapEx investments for maximum revenue generation and the timeline for new capacity, considering Red Sea supply issues. Management responded by detailing increased CapEx to $300 million for 2026, investments in factories in Israel (Ramat Beka tripled) and Europe, and customer co-investments. They also highlighted vertical integration and inventory building to mitigate supply chain risks. 2. Breakthrough in directed energy (high-power lasers) and their role against low-cost drone swarms: Kristine Liwag asked about the technological breakthrough in high-power lasers and their application against drone swarms. Management explained the advantage of airborne lasers (overcoming ground challenges, greater range, eliminating threats far away), the technical challenges overcome, and the huge demand for such solutions, positioning Elbit as a leading player controlling the entire technology in-house. 3. Opportunity set for the PULS system in Europe (Greece, Germany) and its differentiation: Ellen Page questioned the opportunity for the PULS system, specifically regarding recent media reports and budget approval from Greece, and what differentiates it from peers. Management clarified that the Greek and German contracts are not yet in the backlog but are expected. They emphasized the PULS system's unique generic launcher, ability to fire different missiles (including loitering munition), open architecture, and joint venture partnerships in Europe for local development and production (EuroPULS).	Revenue SegmentsC4I and Cyber revenues increased by 19% in the fourth quarter of 2025. ISTAR and EW revenues increased by 39%. Land revenues increased by 22%. Elbit Systems of America revenues increased by 9%. Aerospace revenues decreased by 14%.

2025-11-18 · 2025Q3 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Sustaining double-digit growth and margin expansion: Management highlighted the seventh consecutive quarter of double-digit growth and significant margin expansion, attributing it to strong demand, particularly in Europe and Israel. They emphasized continued improvement in backlog profitability and operational efficiency. 2. Strategic investments in R&D and operational excellence: The company continues to invest in R&D to secure future profitable growth and maintain market leadership. They also focus on operational excellence through investments in ERP systems, robots, cobots, and AI to drive profitability and cash conversion. 3. Expanding global presence and securing large international contracts: Management is focused on leveraging strong international demand, especially in Europe, and actively pursuing M&A opportunities in strategic markets like the U.S. They announced record-breaking contracts, including the largest in Elbit's history and a significant European contract, demonstrating their commitment to equipping customers with advanced solutions globally.	Call Takeaway & ToneThe overall takeaway from the call is highly positive and confident. Elbit Systems delivered robust third-quarter 2025 results, marked by double-digit year-over-year growth in revenues, backlog, and EPS, along with significant margin expansion and solid free cash flow. Management expressed confidence in the company's global leadership and its ability to capitalize on strong demand for defense solutions, particularly in Europe and Israel. Key themes included strategic investments in R&D and operational efficiency, securing record-breaking international contracts, and the growing potential of UAVs and directed energy weapons. The ceasefire in Israel was viewed as an opportunity to regroup and further focus on international business. The tone was optimistic, emphasizing continued growth, profitability, and cash generation.	Prior Quarter'S Y/Y Growth By SegmentAerospace: increased by 12% year-over-year; C4I and Cyber: increased by 21% year-over-year; ISTAR and EW: increased by 15% year-over-year; Land: increased by 45% year-over-year; Elbit Systems of America: increased by 4% year-over-year.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Domestic demand post-ceasefire and margin trade-offs with international orders: An analyst inquired about the endurance of domestic demand after the ceasefire and how a potential slowdown in Israeli bookings might affect margins as orders shift internationally. Management responded by stating they anticipate a flattish backlog in Israel and expect future growth to come predominantly from outside Israel, particularly Europe, which is seen as the primary growth area for the backlog. 2. Trajectory of the Aerospace business: An analyst asked about the future trajectory of the Aerospace segment, given its decline in the current quarter despite some drone orders. Management expressed belief in continued single-digit growth for this segment, citing embedded avionics in most Western platforms and strong global demand for UAVs and loitering munitions. They also noted that the Aerospace segment grew 9% over the first nine months of the year. 3. Opportunities in directed energy, especially outside Israel: An analyst questioned the emerging opportunities in directed energy, specifically regarding the IRON BEAM system and potential for solutions outside Israel. Management confirmed significant interest from many countries for ground high-power laser systems, building on Israel's success. They also highlighted leading the airborne high-power laser system development, seeing it as a potential 'game changer' and a very important future growth engine for Elbit, alongside other confidential energy weapons.	Revenue SegmentsAerospace: decreased by 3% year-over-year; C4I and Cyber: increased by 14% year-over-year; ISTAR and EW: increased by 5% year-over-year; Land: increased by 41% year-over-year; Elbit Systems of America: decreased by 2% year-over-year.

Transcript Tidbits2 rows

2026-03-17

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketEurope contributed 27% of revenues in 2025, surpassing the $2 billion mark, and is expected to be a primary growth engine going forward, followed by Asia Pacific. Approximately 72% of the current backlog was generated from outside of Israel, driven by international customer demand. The company is expanding production facilities globally, especially in Europe (Germany, Sweden, Romania) and the U.S., and customers are also investing with Elbit to create additional capacity.	About CompetitionElbit's diverse global customer base is highlighted as a key differentiator, ensuring the company is not reliant on any single country's defense budget. The company has strengthened its position as the world's leading supplier of next-generation directed energy weapons. The PULS rocket artillery system continues to be a high runner, with its backlog surpassing the $2 billion mark, and is described as the 'leading solution, which is available currently in the market'. Elbit controls the entire technology for its directed energy solutions in-house, positioning it as a leading player in this domain.	About The Broader IndustryThere is intensified global demand for advanced defense systems, with the company noting that 'as one conflict ends, another begins' in the Middle East. The Israeli government approved a further addition to the defense budget of ILS 39 billion (about USD 13 billion). Addressing growing global capacity constraints is a critical element of Elbit's long-term strategy, leading to significant strategic CapEx investments. Many countries are currently fighting drones and cruise missiles with expensive missiles, which is deemed 'not sustainable', indicating a huge demand for alternative solutions like high-power lasers.	Where Things Are HeadedElbit expects Europe to remain its primary growth engine, anticipating strong revenue growth as countries continue to rearm. The company plans to increase its CapEx spend in 2026 to around $300 million to meet high demand, especially for munition and ammunition. Elbit expects to start delivering equipment from the Ramat Beka facility 'quite soon' in 2026. Management believes there is 'very significant, double-digit potential of growth also in the future', citing the 24% backlog growth compared to 16% revenue growth in 2025. High-Power Laser solutions are anticipated to be a 'breakthrough' when operational, bringing a 'new stream of revenues and profit in the near future'. The company also expects margin expansion to continue due to operational leverage and strong growth.	Updates On ThemeCounter-UAS	Broader Themes EmergingArtificial Intelligence (AI) is a broader theme, with Elbit investing heavily in AI enhancements across multiple platforms and integrating intelligent capabilities across defense systems and core operations to strengthen decision-making, operational agility, and scalability. Robotics are also being integrated into new production facilities to increase effectiveness and productivity.	Bullish-Leaning Quotes (Short)''closing another strong year and quarter, delivering double-digit growth in revenues, operating profit, EPS and backlog''. ''first time our quarterly revenues surpassing the $2 billion mark''. ''backlog of orders as of December 31, 2025, was $28.1 billion, approximately $5.5 billion higher than the backlog at the end of 2024''. ''record free cash flow, surpassing the $0.5 billion mark''. ''We are confident in our ability to sustain our growth''. ''the potential of growth is very significant, the double-digit potential of growth also in the future''.	Bearish-Leaning Quotes (Short)''Aerospace revenues decreased by 14%, mainly due to training and simulation in Europe and higher sales of PGM in fourth quarter of 2024''. ''The [indiscernible] war continued for the most part of 2025. But as in the Middle East, as one conflict ends, another begins.'' ''With regards to the Greek opportunity, it's not a contract yet. We didn't receive it yet.''. ''The same is true also in Germany. We got an initial contract in Germany for a small quantity and which is not yet full production in Germany, but the potential that we believe that will mature in the future, but it's not yet in our backlog.''.

2025-11-18

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketElbit Systems is seeing growth predominantly outside of Israel, especially in Europe, which contributed 28% of revenues in Q3 2025. Approximately 69% of the current backlog is derived from orders outside of Israel. The company expanded operations in Europe by opening new facilities in Sweden and Germany to enhance local delivery capabilities. The U.S. market is considered a strategic home market, with plans to pursue opportunities in border protection, leveraging past success with the CBP. Global coalition demand, including Indo-Pacific and Middle East deals, is broadening the addressable market beyond the U.S., de-risking single-buyer exposure.	About CompetitionElbit aims to maintain its position as a market leader through continuous R&D investment. The company's seventh consecutive quarter of double-digit growth demonstrates global leadership on the modern battlefield. Elbit's recently tested and proven solutions position it as a leading authority in the rapidly changing industry. The company secured its largest contract in history, which is a testament to the superiority of its products and technologies. Elbit offers a unique integrated solution for UAVs, including sensors and payloads. A potential competitive threat mentioned in existing knowledge is the risk of low-cost commercial jammers and AI edge kits commoditizing C-UAS margins.	About The Broader IndustryDefense budgets continue to rise globally, with customers seeking cutting-edge, battle-proven systems. There is a huge demand for UAVs and loitering munitions. High-power lasers in the air are anticipated to be a 'game changer' in combating drones and cruise missiles. A surge in hostile-drone incidents has pushed the U.S. and allies to fund layered counter-UAS and electronic-warfare systems. DoD and NATO budgets are upshifting, with the FY26 U.S. request topping $4 billion for counter-UAS/RDT&E and the EU EDF allocating over €800 million for C-UAS collaboration, creating a decade-long funding tail.	Where Things Are HeadedElbit expects continued growth in the Aerospace segment, projecting single-digit revenue growth, aligning with the U.S. budget's growth rate. The company anticipates many more orders for ground high-power lasers in Israel next year and sees significant potential for airborne high-power laser systems. Directed energy weapons are considered a 'very important growth engine' for Elbit's future. The company plans to maintain internal targets for continued profitability improvement and cash conversion. Elbit is actively exploring M&A opportunities in the U.S. and intends to expand its position in this market.	Updates On ThemeDrones:	Broader Themes EmergingArtificial Intelligence (AI) is emerging as a broader theme, with Elbit using AI for operational excellence, including processes and decision-making across land, air, and maritime domains.	Bullish-Leaning Quotes (Short)''double-digit year-over-year growth in revenues, backlog and EPS.'', ''solid 12% growth in quarterly revenues year-over-year'', ''We are very pleased with this margin expansion trajectory.'', ''Elbit's seventh consecutive quarter of double-digit growth further demonstrates our global leadership'', ''largest contract in Elbit history'', ''This is the fifth consecutive quarter where we delivered positive free cash flow'', ''We really believe that this energy weapon activity is a very important growth engine for Elbit for the future.''	Bearish-Leaning Quotes (Short)''Aerospace, third quarter revenues decreased by 3% year-over-year, mainly due to a decrease in Precision Guided Munition sales in Asia Pacific'', ''Elbit Systems of America, revenues decreased by 2% due to a decrease in Electronic systems and medical instrument sales'', ''Budget squeeze: deficit politics or peace dividend shrinks FY-27 drone-defense outlays despite 2025 spike'', ''Tech leapfrogged: low-cost commercial jammers & AI edge kits commoditize C-UAS margins before primes recoup R&D'', ''Integration complexity limits deployment speed: High dependency on multi-vendor systems and AI-based decision-making delays field effectiveness.''	HiringElbit plans to 'continue to recruit additional people' in the U.S. as part of its strategy to expand its position in this important market.

Notes2 rows

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-05-26	Elbit Systems reported strong Q1 2026 results with non-GAAP EPS of $3.87 and revenue of $2.19 billion, both exceeding estimates. The record $30.2 billion backlog and expanded 10.1% operating margin fueled an over 11% stock surge (t+2 days). This positive market reaction validates Elbit's growth trajectory and sustained demand for its defense solutions.	Earnings Transcript	Neutral		N/A
2026-08-11	Elbit Systems reported strong Q2 2026 results, beating revenue and EPS estimates with a record $32 billion backlog and expanded operating margins. However, the stock significantly underperformed SPY (down 7.86% vs. up 0.63%), reflecting market concerns over high valuation, execution risks in converting the large backlog, and increased tax rates, despite management's positive outlook.	Earnings Transcript	Negative	https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF1UH95u95MSTZiQQ33rmWW-cG7YvDTfij193DR2_I1GVozqfA6f2Aweoh71353ifvgjOUn5PdulJPHZxCGLn7LQwu4HsP3xdHzRsT5D41ew9RA83D3Yy9Be7wnkaI0XLNUe8Shq3vvfPkhjejjiNsFgp4VJGwm8qitgZu8BRZ38-wHYU4Y4HT6uLEbjbEtk7ulUHgja-KxN-QDzsCPUgICXel4YZ9jrfmcHedNIvnMBjIWDMK0iWpt	-7.86% (vs SPY: -8.49%)

Upcoming Events4 rows

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
ESLT_a6aff2ab	next year, we'll see many more orders here in Israel for ground high-power lasers.	2026-01-01	2026-12-31	Receipt of 'many more orders' in Israel for ground high-power lasers following the IRON BEAM deployment.	Significant follow-on orders would confirm market acceptance and revenue potential for Elbit's directed energy solutions, impacting future revenue and backlog.	Ticker	2025-11-18	earnings_transcript
ESLT_208db52c	this year, we believe that we will start delivering equipment from the Ramat Beka facility. Actually, it should happen quite soon.	2026-04-01	2026-12-31	Elbit Systems expects to begin delivering equipment from its expanded Ramat Beka facility in Israel.	This event is crucial for addressing growing global capacity constraints and meeting elevated demand, potentially enabling higher revenue generation and backlog conversion.	Ticker	2026-03-17	earnings_transcript
ESLT_eafb3de0	we hope to get the contract soon	2026-04-01	2026-09-30	Elbit Systems anticipates securing a significant contract from the Hellenic Armed Forces for its PULS rocket artillery system, following parliamentary approval and ongoing commercial negotiations.	This large contract, potentially worth $750 million, would add to Elbit's record backlog, further strengthening its position in the European defense market and providing future revenue visibility.	Ticker	2026-03-17	earnings_transcript
ESLT_a7a918ed	The parliamentary window expected in the second half of 2026 will determine the contractual arrangements and initial deliveries.	2026-07-01	2027-03-20	Germany is expected to finalize a major procurement framework agreement for up to 500 EuroPULS rocket artillery systems, with contractual arrangements and initial deliveries determined during a parliamentary window.	This substantial contract, potentially worth €6 billion, would establish Germany as a key EuroPULS production hub and significantly boost Elbit's revenue and market share in Europe.	Ticker	2026-03-17	earnings_transcript

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