#Israel #financial results #Defense Technology #Haifa #Elbit Systems

Elbit Systems Reports Strong Financial Year-End Results

On March 18, 2025, Elbit Systems Ltd., a global leader in defense technology, released its consolidated financial results for the fourth quarter and the entire year of 2024. The company reported an impressive revenue total of $6.8 billion, reflecting a 14% increase from $5.9 billion in 2023. This growth highlights the company’s strong market position and the rising global defense budget demands.

Fourth Quarter Highlights

In the fourth quarter of 2024, Elbit Systems achieved revenues of $1.93 billion, which represents a substantial increase compared to $1.63 billion in the same period in 2023. The company noted particular strength in its aerospace, land, and electronic warfare segments. Key revenue increases included:

• - 27% growth in aerospace, driven by higher demand for Unmanned Aerial Systems (UAS) and Precision Guided Munitions (PGM).
• - 29% increase in land defense, due to robust sales of ammunition.
• - 6% growth for Elbit Systems of America, attributed to rising sales in night-vision systems and medical instrumentation.

The fourth quarter also saw Elbit achieve a non-GAAP net income of $119.3 million, greatly surpassing the previous year's figure of $69.7 million. This translated to a diluted EPS of $2.66, compared to $1.56 in the fourth quarter of 2023.

Management Commentary

Bezhalel (Butzi) Machlis, Elbit's President and CEO, emphasized the company’s successful growth trajectory, stating, "Elbit Systems has delivered a solid performance with double-digit growth in both revenues and order backlogs. Our strategic investments in R&D and production infrastructure have positioned us effectively to meet the surging global defense needs."

Full Year Results Overview

Elbit's financial report for the full year of 2024 indicated a continued upward trend across its departments, particularly in segments serving international clients, securing a backlog of $22.6 billion at year-end, an increase from $17.8 billion a year prior. About 65% of this backlog is attributed to international contracts, demonstrating the company's expanding global footprint.

Operating income for the year rose to $489.1 million from $369.1 million, fueled by higher revenues. Notably, net income attributable to shareholders reached $321.1 million, a marked improvement from $215.1 million the previous year.

War and Its Impact

The ongoing conflict in the Middle East, particularly following the violent outbreak that began on October 7, 2023, has significantly influenced Elbit's operational landscape. The company reported increased demand from the Israel Ministry of Defense (IMOD), with contracts exceeding $5 billion being awarded amid the heightened security concerns linked to the ongoing military operations. This surge is indicative of the challenges and opportunities presented by the current geopolitical landscape.

While Elbit faced operational disruptions due to the conflict, the company swiftly adapted by relocating production lines and enhancing supply chain resilience. As of March 2025, employee attendance had largely returned to pre-conflict levels, and production was resuming normal operations.

Strategic Initiatives and Future Outlook

Elbit Systems continues to focus on innovation, emphasizing R&D investments to expand its offerings in defense technology. The financial data reflects a healthy position from which to pursue further growth opportunities as global defense budgets continue ascending.

The board of directors also announced a dividend of $0.60 per share, further signaling confidence in the company’s financial health moving forward. Elbit Systems is well-positioned to leverage its robust order book and continue providing advanced solutions to address modern defense challenges.

In conclusion, Elbit Systems’ strong financial results for 2024 underscore its strategic resilience and adaptability in a complex global environment. The company's proactive approach positions it well to navigate both current conflicts and seize future growth opportunities.