ESLT

Elbit Systems Ltd.

Next est. report 2026-11-24 · BMO

Airplanes '26: Avionics & Cockpit Electronics Drones '26: Drone OEMs & C-UAS Drones '26: Subsea Drones & UUVs Global Defense '26: Israeli Warfare & Defense 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. provides advanced defense, homeland security, and commercial aviation systems globally, including drones, electro-optics, and C4ISR. For Q2 2

Elbit Systems Ltd. provides advanced defense, homeland security, and commercial aviation systems globally, including drones, electro-optics, and C4ISR. For Q2 2026, Israel contributed 37% of revenues, Europe 25%, North America 20%, and Asia-Pacific 14%. The company primarily sells its cutting-edge solutions to governments and defense contractors worldwide, with a record $32 billion backlog.

Key Inputs And Sourcing

1. Electronic Components/Semiconductors

Not in registry

component · Global (Asia, US, Europe) · unknown

Source Crucial for C4I, Cyber, EW, avionics, communication systems, AI, and general electronic systems mentioned in transcript and company description.

Confidence: high

2. Optical Components/Electro-Optics

Not in registry

component · Global (including China, with noted supply disruption) · unknown

Source Essential for night vision, high-power lasers, ISR, and targeting systems. China's scrutiny on dual-use optics mentioned as a supply chain disruption.

Confidence: high

3. Skilled Labor (Engineers, R&D, Manufacturing Technicians)

Matched (medium)engine_advertising_brand_tracking · access=file · map_only

labor · Israel, US, Europe, Brazil · high (R&D spend 7% of revenues)

Source High R&D spend, complex manufacturing, and system integration are core to Elbit's business. Company is recruiting more people and investing in R&D.

Confidence: high

4. Specialty Metals (e.g., Aluminum, Steel, Copper)

Not in registry

commodity · Aluminum, Steel, Copper · Global · unknown

Source Used extensively in munitions, vehicle systems, aerospace components, and general defense hardware mentioned in product portfolio.

Confidence: medium

5. Propellants and Explosives

Not in registry

component · Global (specialized suppliers) · unknown

Source Essential for ammunition and guided munitions, which are significant revenue drivers and explicitly mentioned in sales segments.

Confidence: high

6. Advanced Composites & Materials

Not in registry

component · Global · unknown

Source Used for UAVs, aerospace structures, and lightweight defense systems, which are key products for Elbit.

Confidence: medium

7. AI/Software Development Tools & Talent

Not in registry

labor · Israel, US, Europe · unknown

Source Significant investment in AI capabilities and autonomous solutions, including the acquisition of Blue White Robotics.

Confidence: medium

8. Logistics & Freight Services

Not in registry

logistics · Global · unknown

Source Critical for managing a global supply chain and delivering products internationally, as highlighted by the company's global operations and backlog.

Confidence: medium

9. Manufacturing Equipment & Robotics

Not in registry

component · Global · unknown

Source Company is increasing CapEx to $300 million for new production facilities and investing in robotics.

Confidence: low

10. Energy (Electricity)

Not in registryaccess=api

energy · Electricity · Local to manufacturing facilities (Israel, US, Europe, Brazil) · unknown

Source Required for powering manufacturing facilities and operations globally.

Confidence: low

Industry Publications

Defense News (defensenews.com) — Global defense policy, budgets, major DEW programs, and contract awards are critical for monitoring Elbit Systems' market and opportunities.
Breaking Defense (breakingdefense.com) — Emerging defense technology, strategic shifts, and in-depth analysis of DEW and other modern warfare concepts are highly relevant to Elbit's innovative portfolio.
Jane's by S&P Global (janes.com) — Provides in-depth technical analysis, market intelligence, and news on defense equipment and capabilities, directly applicable to Elbit's diverse product lines.
FlightGlobal (flightglobal.com) — Covers news and analysis on the aviation and aerospace industry, including military aircraft, UAVs, and avionics, which are significant segments for Elbit Systems.
C4ISRNET (c4isrnet.com) — Focuses on command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) technologies, a core area of Elbit's offerings.

Economic Data Watch

1. US Department of Defense, NATO, SIPRI, IHS Janes — Defense Budget Allocations

Matched (medium)sipri_military_expenditure · access=manual · map_only

Metric/field Annual defense budget allocation (in USD billions) for DEW, C-UAS, EW, Missile Defense

Cadence irregular

Why it matters Direct funding for ESLT's core product areas and a key driver of demand.

Signal to watch Increasing allocations are bullish.

Confidence: high

2. Defense market research reports (e.g., MarketsandMarkets, Mordor Intelligence, IMARC Group, Grand View Research) — Global DEW Market Reports

Matchedgrand_view_research_market_size_forecasts · access=file · map_only

Metric/field Global market size for Directed Energy Weapons (DEW) systems (in USD billions)

Cadence irregular

Why it matters Indicates overall market growth and opportunity for ESLT in a key strategic area.

Signal to watch Growth in market size is bullish.

Confidence: high

3. Federal Reserve Board (FRED) — Industrial Production and Capacity Utilization

Not in registryaccess=api

Metric/field IPMAN (Industrial Production: Manufacturing (NAICS))

Cadence monthly

Why it matters Reflects the health of the manufacturing sector in a key operating region (North America), impacting supply chain and production capacity.

Signal to watch Sustained or increasing production is positive.

Confidence: medium

4. Eurostat (via FRED) — Industrial Production

Not in registryaccess=api

Metric/field EAPSIND01EUQ (Industrial production: Total industry excluding construction, seasonally adjusted, Euro area (19 countries))

Cadence quarterly

Why it matters Europe is a "meaningful growth engine" for ESLT. This indicates the health of the manufacturing sector in a primary growth region, affecting supply chain and economic conditions.

Signal to watch Sustained or increasing production is positive.

Confidence: medium

5. Central Bureau of Statistics, Israel (via FRED) — Consumer Price Index

Not in registryaccess=api

Metric/field ISRCPIALLMINMEI (Consumer Price Index, All Items, Not Seasonally Adjusted, Israel)

Cadence monthly

Why it matters High inflation in Israel could impact local operational costs and the Israeli Ministry of Defense's budget allocation for procurement.

Signal to watch Stable or declining inflation is positive.

Confidence: medium

Free Alt Data Watch

1. USASpending.gov — Federal Contract Awards Database

Not in registryaccess=api

Metric/field Total value and count of federal contract awards to Elbit Systems of America for keywords: 'directed energy', 'laser weapon', 'counter-UAS', 'missile defense', 'avionics', 'night vision', 'C4I', 'UAV'

Cadence event_driven

Why it matters Direct indicator of new business wins and government demand for ESLT's products in the US.

Signal to watch Increasing value and frequency of awards are bullish.

Confidence: high

2. Reputable defense news (e.g., Defense News, Breaking Defense, Jane's), specialized defense forums (e.g., r/CredibleDefense, r/WarfareTechnology) — News articles, forum posts

Matched (medium)context_analytics_news_sentiment · access=file · map_only

Metric/field Volume of mentions and sentiment (positive/negative) related to Elbit Systems and its key products (e.g., PULS rocket artillery, Iron Beam, Skystriker, ENVG-B)

Cadence irregular

Why it matters Reflects public perception, market interest, and potential geopolitical impacts on the company.

Signal to watch Increasing positive mentions and interest are bullish.

Confidence: medium

3. Google Trends — Search Interest Data

Not in registryaccess=api

Metric/field Relative search interest score for keywords: 'Elbit Systems', 'PULS rocket artillery', 'Iron Beam defense', 'ENVG-B system', 'Skystriker loitering munition'

Cadence weekly

Why it matters Indicates public and industry interest in ESLT and its flagship products, potentially correlating with market demand.

Signal to watch Rising search interest is bullish.

Confidence: medium

4. Government portals (e.g., grants.gov, EU Defence Fund website, Israeli MOD announcements) — R&D Grant Announcements

Not in registry

Metric/field Value and number of new R&D grants/funding opportunities relevant to Elbit's technology areas (e.g., DEW, C-UAS, AI for defense, autonomous systems, maritime systems)

Cadence event_driven

Why it matters Signals future government investment priorities and potential R&D partnerships for ESLT.

Signal to watch Increasing funding opportunities are bullish.

Confidence: high

5. Publicly available satellite imagery (e.g., Google Earth, Sentinel Hub) — Satellite Imagery

Not in registry

Metric/field Changes in facility footprint, construction activity, vehicle traffic, and inventory levels at key Elbit Systems production sites (e.g., Ramat Beka, Roanoke County VA, European facilities)

Cadence monthly

Why it matters Provides a physical indication of production ramp-up, capacity expansion, and operational activity, directly relevant to backlog conversion.

Signal to watch Increased activity and expansion are bullish.

Confidence: medium

Paid Alt Data Watch

1. Thinknum Alternative Data / LinkUp / Revelio Labs — Job Postings Data

Matchedlinkup_job_postings · access=file · map_only

Metric/field Total active job postings and new job postings for 'Systems Engineer', 'AI Engineer', 'Electronic Warfare', 'UAV', 'Avionics', 'Laser Engineer', 'Night Vision' at Elbit Systems and its key subsidiaries

Cadence irregular

Why it matters Indicates R&D focus, production ramp-up, and strategic growth areas within the company.

Signal to watch Increasing specialized job postings are bullish.

Confidence: high

2. Supply chain intelligence platforms (e.g., Everstream Analytics, Resilinc, FourKites) — Supply Chain Risk & Lead Time Data

Not in registry

Metric/field Average lead times, supplier concentration risk, and disruption alerts for key components relevant to Elbit's product lines (e.g., C4I, ISTAR, Land, Aerospace)

Cadence daily

Why it matters Directly impacts ESLT's ability to convert backlog into revenue and manage production costs.

Signal to watch Stable or decreasing lead times and low risk scores are positive.

Confidence: high

3. GovWin IQ (Deltek), Bloomberg Government, specialized defense market intelligence platforms — Government Contract Databases

Not in registry

Metric/field Contract modifications, funding obligations, and competitor win rates for contracts related to Elbit's core segments (e.g., C4I, ISTAR, Land, Aerospace, Maritime) in US, Europe, and Israel

Cadence daily

Why it matters Provides deeper insights into contract performance, funding flow, and competitive landscape beyond public announcements.

Signal to watch Positive contract modifications, strong funding obligations, and favorable win rates are bullish.

Confidence: high

4. Commercial satellite imagery providers (e.g., Planet Labs, Maxar, BlackSky) — High-Resolution Satellite Imagery

Matchedplanet_high_resolution_satellite_imagery · access=file · map_only

Metric/field Detailed analysis of construction progress, vehicle counts, raw material/finished goods inventory changes, and operational footprint at key Elbit facilities (e.g., Ramat Beka, US, European sites)

Cadence irregular

Why it matters Offers granular, independent verification of production capacity, backlog conversion, and capital expenditure effectiveness.

Signal to watch Visible expansion, increased activity, and inventory build-up (if aligned with production) are bullish.

Confidence: high

5. Expert networks (e.g., GLG, AlphaSense, Tegus) — Expert Call Transcripts

Matchedtegus_expert_interview_transcripts · access=file · map_only

Metric/field Key insights, sentiment, and forward-looking commentary from industry experts regarding demand drivers, technological shifts, and competitive dynamics relevant to Elbit's business (e.g., directed energy, counter-UAS, military connectivity, regional defense spending)

Cadence irregular

Why it matters Provides qualitative, forward-looking insights and validation of market trends from informed sources.

Signal to watch Positive sentiment and confirmation of strong demand/adoption are bullish.

Confidence: medium

Search Keywords Brand Product

PULS rocket artillery
Iron Fist active protection
DIRCM countermeasures
Hermes UAV
ENVG-B night vision
THOR Group 2 UAS
Skystriker loitering munition
naval EW systems
sonobuoys
unmanned USVs
maritime radars
electro-optics defense
remote weapon stations
high-power laser systems
air-launched munitions
C4I systems
cyber defense solutions
ISTAR systems
electronic warfare
land defense systems
aerospace systems
training and simulation systems
defense technology
homeland security solutions
commercial aerospace
military modernization
networked battlefield
autonomous ground solutions
AI-powered autonomy
manned-unmanned teaming
precision strike capabilities
tank modernization
defense integrator
global defense market
defense electronics

Search Keywords Event Phrases

Elbit Q2 2026 earnings
Elbit Systems earnings call
Eurosatory exhibition
EUROSIM exhibition
ILA Berlin exhibition

Search Keywords Policy Regulatory

Israeli R&D law
OECD Pillar Two global minimum tax
US Customs and Border Protection contracts
US Army contracts
Israel Ministry of Defense contracts
European military modernization programs

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 — LinkedIn: elbit-systems-of-america
Elbit Systems UK — LinkedIn: elbit-systems-uk
Elbit Systems Deutschland — LinkedIn: elbit-systems-deutschland
Elbit Systems Sweden — LinkedIn: elbit-systems-sweden
Elbit Systems Switzerland — LinkedIn: elbit-systems-switzerland
AEL Sistemas — LinkedIn: ael-sistemas
Sparton — An Elbit Systems of America subsidiary; LinkedIn: sparton-an-elbit-systems-of-america-company
GeoSpectrum Technologies Inc. — An Elbit Systems Company in Canada; LinkedIn: geospectrum-technologies-inc
EuroPULS — A joint venture with KNDS in Germany; LinkedIn: europuls
Blue White Robotics — An Elbit Systems Company, acquired May 2026; LinkedIn: blue-white-robotics
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, the U.S. Customs and Border Protection, the Royal Navy (UK), and the Greek government. The company also partners with defense contractors like KNDS and Diehl Defence.
New Customers / Segments They'Re Targeting: Elbit Systems is actively targeting expanded business in the U.S. defense and homeland security markets, evidenced by significant awards from the U.S. Customs and Border Protection and the U.S. Army for night vision systems (ENVG-B) and unmanned aerial systems (THOR Group 2). The company is also heavily focused on European military modernization programs, securing a landmark $1.4 billion contract and a $750 million award for its PULS rocket artillery system in Greece. Furthermore, they are expanding their footprint in autonomy capabilities through acquisitions like Blue White Robotics and strengthening partnerships for loitering munitions (Skystriker with Diehl Defence) and high-power laser systems globally.
Sales Geographies And Expansion Plans: For the second quarter of 2026, Elbit Systems' revenues were geographically distributed as follows: Israel contributed 37%, Europe 25%, North America 20%, and Asia-Pacific 14%. The company views Europe and Asia-Pacific as meaningful growth engines. Elbit is making significant strategic capital expenditure investments to expand its production facilities globally, including new facilities in the south part of Israel, and has inaugurated several facilities abroad. They are also expanding their footprint in the U.S., recruiting more people, and bringing more technologies from Israel to the U.S. to enhance their position as a local provider.
How Key Themes May Help/Hurt: The buildout of 'Modern Warfare '26: Lasers & Directed Energy Weapons' is a significant tailwind for Elbit Systems. The company is a key player in this theme, having supplied the laser source for Israel's Iron Beam system and secured contracts from the Israel Ministry of Defense to develop airborne high-power laser solutions for helicopters and jet aircraft. There is 'huge interest' from international customers for their high-power laser technology, especially the airborne solution, positioning it as a 'growth engine' with 'huge potential'. The global shift towards cost-effective defenses against drone and missile threats, as highlighted in the theme, directly benefits Elbit's investments and capabilities in this area, driving new revenue streams and strengthening its market leadership. The company's R&D in energy weapons is a strategic focus, aligning perfectly with the accelerating demand for DEW systems globally.

3 Main Long-Term Bull Details

Record and Growing Backlog with International Diversification: Elbit Systems reported a record order backlog of $32 billion as of June 30, 2026, with approximately 73% generated from outside Israel, predominantly from Europe. This substantial and internationally diversified backlog provides exceptional revenue visibility and underpins sustained double-digit growth.
Technological Leadership and R&D Investment in Emerging Areas: The company consistently invests heavily in R&D, including a significant increase in R&D spend in the first half of 2026, focusing on next-generation technologies, advanced AI capabilities, and disruptive solutions like high-power lasers. This commitment positions Elbit as a leader in critical and evolving defense domains, such as airborne high-power lasers and autonomous ground solutions.
Strong Operational Execution and Capacity Expansion: Elbit Systems demonstrates consistent operational excellence, delivering strong financial performance with double-digit growth in revenues, operating profit, and EPS, alongside expanding profitability margins. The company is strategically increasing its capital investment to about $300 million to build new production facilities globally and improve productivity, ensuring efficient conversion of its growing backlog into revenue and profit.

3 Main Long-Term Bear Details

Geopolitical Risks and Regional Instability: Despite international diversification, Israel contributed 37% of Elbit's Q2 2026 revenues, following inventory replenishments on the back of a recent conflict with Iran. This significant exposure to the Israeli market and regional instability introduces potential operational disruptions and volatility in domestic demand, requiring continued international expansion to mitigate concentration risk.
Aerospace Segment Volatility and Project Mix: The Aerospace segment experienced an 8% decrease in revenues in Q2 2026, mainly due to a one-time unfavorable project mix and lower sales of training and simulation systems in Europe. While partially offset by UAV sales in Israel, this segment's performance can be subject to project-specific factors and market fluctuations.
Intense Competition and Rapid Technological Advancements: 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 operates in a highly competitive defense technology sector. While specific competitors vary by product line, they compete with major defense primes and specialized technology companies globally. Their differentiation strategy is multifaceted: they offer a very wide and advanced portfolio spanning multiple domains (EW, UAVs, C4I, guided munitions, simulation, high-power lasers), enabling them to provide comprehensive, integrated solutions. A unique business model involves a willingness to transfer intellectual property (IP) and technology to partners and subsidiaries in Europe, the U.S., and elsewhere, supporting local economies and becoming part of local ecosystems. This approach, coupled with their 'battle-proven' technology, strong R&D, and vertical integration, allows them to secure significant international contracts and maintain leadership in key markets like naval electronic warfare and airborne high-power lasers. They also partner with other defense companies like KNDS and Diehl Defence for specific programs.
Recent Performance & What The Market'S Focused On: Elbit Systems reported strong second-quarter 2026 results, delivering double-digit growth in revenues (up 15.9% to $2.287 billion), backlog (up to a record $32 billion), operating profit, and EPS (GAAP diluted EPS up 34% to $3.61). Profitability margins (gross, operating, and net) continued to expand, surpassing internal targets. The market is focused on the company's ability to convert its record backlog into revenue, sustained margin expansion, and the impact of increased CapEx investments on future growth and capacity. Concerns also include the higher tax expense due to OECD Pillar Two rules and geopolitical risks, despite the strong international demand.

Revenue Segments And Estimated Mix: Israel — Mix: 37%; Source: Q2 2026 earnings call; Trend: following inventory replenishments on the back of the recent conflict with Iran
Europe — Mix: 25%; Source: Q2 2026 earnings call; Trend: meaningful growth engine
North America — Mix: 20%; Source: Q2 2026 earnings call
Asia-Pacific — Mix: 14%; Source: Q2 2026 earnings call; Trend: meaningful growth engine
C4I and Cyber — Mix: n/m; Source: Q2 2026 earnings call; Trend: increased by 11%
ISTAR and EW — Mix: n/m; Source: Q2 2026 earnings call; Trend: increased by 22%
Land — Mix: n/m; Source: Q2 2026 earnings call; Trend: increased by 32%
Elbit Systems of America — Mix: n/m; Source: Q2 2026 earnings call; Trend: increased by 17%
Aerospace — Mix: n/m; Source: Q2 2026 earnings call; Trend: decreased by 8%
Product Brands: PULS (Precise and Universal Launching System)
Iron Fist (Active Protection System)
DIRCM (Directed Infrared Countermeasures)
Hermes (Unmanned Aircraft Systems)
ENVG-B system
THOR Group 2 unmanned aerial system
Skystriker loitering munition system

Bull / Bear Details

Elbit Systems is a leading global defense prime poised for sustained double-digit growth, driven by a record $32 billion international backlog and expanding mar

Thesis

Elbit Systems is a leading global defense prime poised for sustained double-digit growth, driven by a record $32 billion international backlog and expanding margins. Strategic CapEx, increasingly supported by customer funding, and continuous R&D in disruptive technologies like high-power lasers and AI-powered autonomy, enhance operational efficiency and market leadership. The company's diversified portfolio and unique local partnership model underpin a compelling long-term investment case. (Updated: 2026-09-20)

Bull case

Elbit's record $32 billion backlog as of June 30, 2026, a 34% year-over-year increase, provides exceptional revenue visibility. With 73% derived from outside Israel, primarily Europe, this international demand underpins sustained double-digit revenue, operating profit, and EPS growth, demonstrating strong market capture and future potential.
The company demonstrates strong operational excellence with Q2 2026 non-GAAP operating income at 10.4% of revenues, surpassing internal targets. Critically, customers are increasingly willing to directly fund or match CapEx for capacity expansion and technology transfer, a new trend that significantly de-risks Elbit's own $300 million CapEx and accelerates backlog conversion.
Elbit maintains technological leadership through significant R&D investments in high-growth defense areas. This includes being selected as the sole prime supplier for the U.S. Army's ENVG-B system and prime contractor for airborne high-power lasers for the Israeli Air Force, with huge international interest for this advanced technology.

Bear case

Despite international diversification, Israel contributed 37% of Elbit's Q2 2026 revenues, following inventory replenishments after the recent conflict with Iran. This increased concentration exposes the company to heightened geopolitical risks and regional instability, introducing potential operational disruptions and volatility in domestic demand.
The Aerospace segment experienced an 8% year-over-year revenue decrease in Q2 2026, primarily due to a one-time unfavorable project mix and lower sales of training and simulation systems in Europe. This continues a negative trend for the segment, indicating potential challenges in certain product lines or market areas.
Elbit's profitability was impacted by a significantly higher tax expense in Q2 2026, with the effective tax rate jumping to 16.4% from 5.6% in Q2 2025. This increase was mainly driven by the implementation of the OECD Pillar Two global minimum tax rules, posing a material headwind to net earnings.

Bull / Bear Case

Bear Case: Despite growing international diversification, Israel contributed 37% of Elbit's Q2 2026 revenues, following inventory replenishments due to the recent conflict with Iran, exposing the company to heightened geopolitical risks and regional instability. The Aerospace segment experienced an 8% year-over-year revenue decrease in Q2 2026, continuing a negative trend due to an unfavorable project mix and lower sales of training and simulation systems in Europe. Elbit's profitability was significantly impacted by a higher effective tax rate, jumping to 16.4% in Q2 2026 from 5.6% in Q2 2025, primarily due to the implementation of the OECD Pillar Two global minimum tax rules. The stock has significantly underperformed the SPY post-earnings, reflecting market concerns over its high valuation, execution risks in converting the large backlog, and increased tax rates. The defense technology sector remains highly competitive, with risks of competitors developing superior or lower-cost solutions, potentially eroding Elbit's market share and profitability.
Bull Case: Elbit Systems is poised for sustained double-digit growth, driven by a record $32 billion backlog as of June 30, 2026, representing a 34% year-over-year increase and providing exceptional revenue visibility. Approximately 73% of this backlog originates from international customers, primarily in Europe, reducing reliance on any single market. The company demonstrates strong operational excellence, with Q2 2026 non-GAAP operating income at 10.4% of revenues, surpassing internal targets. A significant new trend sees customers increasingly willing to directly fund or match CapEx for capacity expansion and technology transfer, de-risking Elbit's own $300 million CapEx and accelerating backlog conversion. Elbit maintains technological leadership through substantial R&D investments in high-growth defense areas, including being the sole prime supplier for the U.S. Army's ENVG-B system and prime contractor for airborne high-power lasers, with considerable international interest. Its diversified portfolio and unique local partnership model further underpin a compelling long-term investment case.
More Compelling & Why: Bear. Elbit Systems' current P/E ratio of approximately 56-58 is significantly higher than the Aerospace & Defense industry's 3-year average P/E of 36.6x, indicating a stretched valuation. The stock's underperformance post-earnings to current, despite a strong quarter, reflects market concerns over this high valuation, execution risks in converting the record backlog, and increased tax rates. The most compelling bear argument is the high valuation relative to peers, which leaves little room for error in execution or unexpected headwinds. My view would flip to Bull if the P/E ratio compressed closer to the industry average, perhaps below 40x, while maintaining its strong backlog growth and margin expansion.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Operationalization of Airborne High-Power Laser Systems and International Interest	Successful deployment and new international orders for high-power laser systems validate Elbit's technological leadership in directed energy weapons, opening a significant new growth engine.	Announcements of initial operational capability (IOC) for airborne high-power laser systems (e.g., for Israeli Air Force helicopters). New international contracts for these systems exceeding $100 million in value.	Bullish: Announcement of IOC for airborne high-power laser systems or new international orders for high-power laser systems (e.g., >$100 million). Bearish: Delays in development or lack of significant new international orders for two consecutive quarters.	Company press releases, defense industry news (e.g., Jane's, Defense News), and earnings call commentary (next expected Q3 2026 results in November 2026).	Defense technology forums (e.g., r/CredibleDefense) for discussions on DEW developments.	Defense market research reports (e.g., MarketsandMarkets, Mordor Intelligence) on Directed Energy Weapons market size and adoption.
Increased Strategic CapEx to $300M and New Customer-Funded Capacity Expansion	Expanded CapEx and customer co-investment in production facilities are critical for converting the record backlog into revenue, improving productivity, and ensuring security of supply.	Announcements regarding the progress and operationalization of new production facilities (e.g., Ramat Beka, facilities abroad). Updates on customer-funded capacity projects and their impact on delivery timelines.	Bullish: Confirmation of new facilities becoming operational on time, CapEx spend meeting or exceeding targets, and new customer-funded capacity projects being announced or progressing. Bearish: Delays in facility operationalization or significant reductions in planned CapEx.	Company earnings conference call transcripts and investor presentations (next expected Q3 2026 results in November 2026).	Company news releases, local business news in regions of new facilities.	Thinknum Alternative Data / LinkUp: Job postings for 'production engineer' or 'manufacturing specialist' in relevant geographies (Israel, Europe, U.S.) for ESLT.
Record Order Backlog Growth and High International Contribution	A growing, internationally diversified backlog provides exceptional revenue visibility and validates sustained demand for Elbit's advanced defense solutions, underpinning future growth.	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 $1.8 billion (Q2 2026 increase was $1.8B), with international orders contributing significantly (>70% of the increase). Bearish: Quarterly backlog decline, or international backlog growth slowing significantly below expectations.	Company earnings press releases and conference call transcripts (next expected Q3 2026 results in November 2026).	Government defense contract databases (e.g., USASpending.gov for U.S. contracts >$25,000).	Thinknum Alternative Data: Defense contract awards for ESLT.
Non-GAAP Operating Income Percentage and Margin Expansion	Sustained expansion of non-GAAP operating income percentage indicates strong operational efficiency and pricing power, crucial for long-term profitability and 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 10.4% (Q2 2026) 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 press releases and conference call transcripts (next expected Q3 2026 results in November 2026).	Financial news outlets reporting earnings summaries.	Bloomberg Terminal: ESLT <GO> for financial statements and analyst estimates.
New Large-Scale International Defense Contracts, particularly in Europe and the U.S.	Major contract wins, particularly from international customers, demonstrate strong market capture and reinforce Elbit's position as a leading global defense provider, driving future revenue.	Total value of new international contracts announced within a quarter, with a focus on Europe and the U.S. Specific contract wins for key platforms like PULS, ENVG-B, or tank modernization.	Bullish: Announcement of new international contracts exceeding $1 billion, or multiple smaller contracts totaling over $500 million within a quarter, with a strong European or U.S. component. Bearish: Lack of significant new contract announcements for two consecutive quarters, or contract values below historical averages.	Company press releases, SEC filings (Form 6-K), and earnings conference call transcripts (next expected Q3 2026 results in November 2026).	Defense news websites (e.g., Defense News, Breaking Defense) for contract announcements.	GovWin IQ: Government contract awards database for defense contractors.

Key Reported Metrics, Reratings Triggers & Results3 rows

This metric reflects the company's core profitability and operational efficiency, demonstrating its ability to manage costs and integrate complex systems profit

Upcoming print · 2026-11-24

Key reported metrics
Metric	Last period	Why it matters
Non-GAAP Operating Income	$237.5 million (35.6% y/y growth), 10.4% of revenues (+1.5pp)	This metric reflects the company's core profitability and operational efficiency, demonstrating its ability to manage costs and integrate complex systems profitably, driving EPS growth.
Total Revenue	$2.287 billion (15.9% y/y growth)	Strong revenue growth is a primary indicator of overall business expansion and the company's ability to convert its substantial backlog into sales, validating market capture and global demand.
Order Backlog	$32 billion (34% y/y growth, $1.8 billion quarterly increase)	A record and growing backlog, especially from international customers, provides strong revenue visibility and signals sustained demand for Elbit's advanced defense systems, underpinning future growth.

Last reported · 2026-08-11

Key reported metrics			Rerating thresholds			Earnings results
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date	Actual reported	Hit target?	Notes
Order Backlog	24%	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	$32 billion (34% y/y growth, $1.8 billion quarterly increase)	No	The order backlog reached a record $32 billion, representing a 34% year-over-year growth. However, this fell short of the rerating trigger of exceeding $32.7 billion and a quarterly increase of over $2.5 billion from Q1 2026's $30.2 billion. The actual quarterly increase was $1.8 billion. While 73% of the backlog was from international customers, the specific contribution to the increase was not quantified as over 70%. Despite the record backlog, the stock underperformed, reflecting market concerns over execution risks in converting the large backlog.
Non-GAAP Operating Income	34%	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	$237.5 million (35.6% y/y growth), 10.4% of revenues (+1.5pp)	Partially	Non-GAAP operating income was $237.5 million, representing 10.4% of revenues in Q2 2026, an increase of 1.5 percentage points from 8.9% in Q2 2025. This exceeded the Q1 2026 reported value of 10.1% but did not reach the specific rerating threshold of 11% or higher. Management noted that profitability margins continued to expand, surpassing internal targets. However, the stock's underperformance suggests the market was looking for a more substantial move towards the mid-teens for a rerating.
Total Revenue	11.3%	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	$2.287 billion (15.9% y/y growth)	Partially	Second quarter revenues increased by 15.9% year-over-year to $2.287 billion, exceeding the rerating trigger of 15.5% year-over-year growth. However, the company's forward guidance indicated 'mid-teens' revenue growth for fiscal year 2026, which did not meet the 'high teens (18% or more)' requirement for a rerating. This mixed outcome, despite strong top-line performance, likely contributed to the stock's overall underperformance following the earnings report.

Key Questions

Given Elbit's record $32 billion backlog and the new trend of customers directly funding capacity expansion in addition to Elbit's increased CapEx, will the com

Given Elbit's record $32 billion backlog and the new trend of customers directly funding capacity expansion in addition to Elbit's increased CapEx, will the company successfully accelerate the conversion of this backlog into revenue and maintain its mid-teens revenue growth trajectory over the next quarter, while effectively managing production ramp-up and supply chain efficiency?

Question 2: Can Elbit Systems sustain its non-GAAP operating income margin expansion, building on the 10.4% achieved in Q2 2026, despite increased R&D investments and the significant impact of the OECD Pillar Two global minimum tax rules on its effective tax rate, thereby driving continued EPS growth in the upcoming quarter?
Question 3: Will Elbit's significant investments and international interest in high-power laser systems, particularly airborne solutions, combined with the strategic expansion of its multi-domain autonomy portfolio through acquisitions like Blue White Robotics, begin to materially offset the continued decline in the Aerospace segment and drive new revenue streams over the next quarter?

Earnings Transcript Summary3 rows

2026-08-11 · 2026Q2 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. Converting market demand into growth, booking substantial new orders, and expanding the backlog to a record $32 billion. Management emphasized consistent execution and business momentum across the organization. 2. Increasing capital investment to approximately $300 million, building new production facilities, and investing in robotics and AI to improve productivity and efficiently convert the growing backlog into revenues and profit. 3. Investing in next-generation technologies and advanced AI capabilities, expanding the multi-domain autonomy portfolio through acquisitions like Blue White Robotics, and reinforcing Elbit's leadership in key markets.	Call Takeaway & ToneThe overall takeaway from the call is highly positive and confident. Elbit Systems reported another strong quarter with double-digit growth in revenues, backlog, operating profit, and EPS, surpassing internal targets. The company achieved a record backlog of $32 billion, driven predominantly by international orders, providing strong visibility for future growth. Management emphasized strategic investments in R&D, AI, and production capacity to meet escalating global demand and convert the backlog efficiently. The tone was optimistic, highlighting Elbit's strong market position, technological leadership, and ability to capitalize on the increasing demand for advanced defense solutions worldwide.	Prior Quarter'S Y/Y Growth By SegmentIn Q1 2026, C4I and Cyber revenues increased by 17%. ISTAR and EW revenues increased by 17%. Land revenues increased by 27%. Elbit Systems of America revenues increased by 5%. Aerospace revenues increased by 2%.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Revenue growth profile given backlog growth and geopolitical events: Sheila Kahyaola asked about the medium-term revenue growth profile considering the record backlog and a potential ceasefire between the U.S. and Iran. Management responded that they see growing demand in Europe, the U.S., Asia-Pacific, and their region, with a very large funnel of opportunities. They highlighted their wide portfolio and unique business model of transferring IP and technology to local partners, enabling them to support local economies and secure customer investments in local facilities. 2. Maritime domain development and demand for high-power lasers: Omri Efroni inquired about the maritime sector's development and Elbit's specific high-power laser sales to Asia-Pacific. Management stated that the maritime domain is a growth engine, with activities in naval EW, sonobuoys (through Sparton), unmanned surface vessels (USVs), missiles, sonars (through GeoSpectrum Technologies Inc.), and ship upgrades. Regarding high-power lasers, they are delivering sources for the Israeli program, developing airborne solutions for the Israeli Air Force (helicopters and jets), and seeing huge international interest for this technology from all continents. 3. Customer willingness to fund CapEx directly and Elbit's role in autonomous systems: Kristine Liwag asked if customers are willing to fund CapEx directly to accelerate capacity expansion and how Elbit envisions its role in the autonomous systems ecosystem. Management confirmed that customers are increasingly willing to match or fully finance capacity investments, especially for technology transfer to their territories, a significant new trend beyond Elbit's own increased CapEx of $300 million. For autonomous systems, management highlighted Elbit's vertical integration and ownership of technology from product to system-of-systems solutions, while remaining open to discussing various offerings and sharing IP with partners to support local economies and ensure security of supply.	Revenue SegmentsC4I and Cyber revenues increased by 11% in the second quarter of 2026. ISTAR and EW revenues increased by 22%. Land revenues increased by 32%. Elbit Systems of America revenues increased by 17%. Aerospace revenues decreased by 8%.

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 Tidbits3 rows

2026-08-11

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 reported that Europe contributed 25% of revenues and Asia-Pacific 14% in Q2 2026, with both regions continuing to be meaningful growth engines. The company's backlog reached a record $32 billion, with approximately 73% generated from outside of Israel, predominantly from international customers, mainly in Europe. Elbit Systems of America received multiple awards from the U.S. Customs and Border Protection valued at approximately $370 million and secured a $212 million order as the sole prime supplier for the ENVG-B system for the U.S. Army. The company also expanded its UAS footprint in the U.S. with the selection of its THOR Group 2 unmanned aerial system. A landmark $1.4 billion U.S. contract was awarded for a European customer for a comprehensive military modernization program, and a formal award of approximately $750 million for PULS in Greece was announced. Elbit secured a $350 million contract to modernize a fleet of main battle tanks for an international customer. Management noted a growing demand for their portfolio in Europe, the U.S., Asia-Pacific, and their region, with a very big funnel of opportunities. The company's unique business model allows for the transfer of IP and technology to partners and subsidiaries worldwide, supporting local economies, and customers are increasingly willing to finance capacity expansion in their territories.	About CompetitionElbit Systems of America was selected as the sole prime supplier for the ENVG-B system for the U.S. Army, reflecting confidence in their advanced night vision capabilities. The PULS program in Greece strengthens its position as a leading rocket artillery solution in Europe. Elbit's leadership in tank modernization was reinforced by a $350 million contract for an international customer. The company ranked first in the defense integrator category in a recent Dun & Bradstreet survey of the Israeli defense industry. Management highlighted Elbit's wide and advanced portfolio as a significant advantage. In the maritime domain, Sparton, an Elbit Systems of America subsidiary, is one of two suppliers of sonobuoys to the U.S. Navy and international customers. For airborne high-power laser pods for fighter aircraft, management stated, 'I am not aware of any solution like this which is available in the market.'	About The Broader IndustryThe recent conflict with Iran, which ended in early April, led to inventory replenishments in Israel, contributing 37% of Elbit's Q2 2026 revenues. The Knesset enacted a new R&D law, effective January 1, 2026, to encourage R&D efforts in Israel, partially funding Elbit's increased R&D spend. The implementation of the OECD Pillar Two global minimum tax rules significantly increased tax expenses in Q2 2026. There is continued demand for precision strike capabilities, and interest from customers, partners, and investors at European exhibitions was exceptionally strong, particularly around local defense capabilities, advanced training solutions, electronic warfare autonomy, and next-generation air and land systems. Geopolitical risks are elevated, leading customers to focus on security of supply. A new trend sees customers willing to directly finance CapEx to add capacity and shorten delivery times. The maritime domain is identified as a growth engine, with growing demand for sonobuoys globally. There is also huge international interest for high-power laser technology, especially airborne solutions.	Where Things Are HeadedElbit Systems expects its profitability margins to continue expanding, surpassing internal targets. The company anticipates continued growth in its backlog in the coming quarters, driven by a large funnel of opportunities. A significant effort is underway to convert the record $32 billion backlog into revenues and profit, supported by an increased capital investment of about $300 million for new production facilities, robotics, and AI. New production facilities in southern Israel and abroad are already operational, positioning the company to meet growing market demand. Management noted a 34% year-over-year backlog growth compared to 16% revenue growth, indicating extended future visibility and confidence in sustained mid-teens revenue growth. The maritime domain is expected to be a growth engine, and additional orders for high-power laser sources are anticipated for Israel, with significant potential for airborne high-power laser solutions internationally. Elbit Systems of America is expected to continue growing, though perhaps not at the same pace as the last quarter. The company is establishing multiple production lines for products and systems to ensure delivery reliability.	Updates On ThemeLasers	Broader Themes EmergingElbit Systems is committed to investing in 'next generation technologies and advanced AI capabilities' and is 'investing in robotics, in AI' to improve productivity. The acquisition of Blue White Robotics, an Israeli developer of 'AI-powered autonomous ground solutions,' strengthens Elbit's autonomy capabilities and expands its multi-domain autonomy portfolio, enhancing its ability to deliver advanced robotics and manned-unmanned teaming solutions. Autonomy is increasingly seen as important in the battlefield.	Bullish-Leaning Quotes (Short)“We are pleased to report another strong quarter, delivering double-digit growth in revenues, backlog, operating profit, and EPS.” “Our profitability margins, gross operating and net, continue to expand, surpassing our internal targets.” “We continue to win important new business and expand our backlog to a record of $32 billion.” “Elbit Systems of America was selected as the sole prime supplier under this award, reflecting the U.S. Army's confidence in our advanced night vision capabilities.” “This significant program further strengthens PULS' position as a leading rocket artillery solution in Europe and reflects the growing international demand for advanced precision fire capabilities.” “I believe that you will continue to see growth in our backlog in the coming quarters.” “I believe that we are in a very good position to meet the growing demand that we see in the market, backlog-wise and revenue-wise.” “we see 34% year-over-year growth in our backlog, while revenue increased 16%.” “The maritime domain, that's for sure a growth engine for the company.” “I am not aware of any solution like this which is available in the market.” “This is a new trend in the market where customers are actually paying for the CapEx.”	Bearish-Leaning Quotes (Short)“Aerospace revenues decreased by 8% in the second quarter of 2026, mainly to a one-time unfavorable project mix and lower sales of training and simulation systems in Europe, partially offset by the increase in UAV sales in Israel.” “The higher tax expense in the second quarter of 2026 was mainly driven by the implementation of the OECD Pillar Two global minimum tax rules. The effective tax rate in the second quarter of 2026 was 16.4%, compared to 5.6% in the second quarter of 2025.” “I cannot say that it will continue to grow at the same pace as it grew this quarter, but it will continue to grow for sure.”	HiringElbit Systems is 'recruiting more people' as it enhances its footprint in the U.S. Management also acknowledged the 'exceptional team of employees whose talent, dedication, and sense of purpose continue to shape Elbit's future.'

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.

Notes3 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%)
2026-08-11	Elbit Systems reported strong Q2 2026 results, achieving double-digit growth in revenues, operating profit, and EPS, alongside a record $32 billion backlog. Management emphasized robust demand from Europe and the U.S., increased CapEx for capacity expansion, and leadership in high-power lasers. The market reacted positively, with ESLT's stock outperforming SPY by 0.22% (0.97% vs 0.75%) in the two days post-earnings, aligning with the company's strong performance and optimistic outlook.	Earnings Transcript	Neutral		+0.97% (vs SPY: +0.22%)

Upcoming Events3 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_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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