#Israel #Defense Technology #Haifa #Elbit Systems #NASDAQ ESLT

Elbit Systems Reports Third Quarter 2025 Results

Elbit Systems Ltd., the international defense technology leader, has announced its consolidated results for the third quarter ending September 30, 2025. The company noted impressive financial performance amid a backdrop of global tensions and growing defense expenditures.

Financial Overview

In Q3 2025, Elbit Systems generated revenues of $1.9 billion, an increase from $1.7 billion in the same period last year, reflecting a year-over-year growth rate that highlights robust market demand. The company's net income attributable to shareholders surged to $133.4 million, compared to $79.1 million in Q3 2024. Notably, the non-GAAP diluted earnings per share saw a rise to $3.35, up from $2.21 a year earlier.

The order backlog has reached a record $25.2 billion, underscoring the company’s sustained growth trajectory. Approximately 69% of this backlog is linked to international orders, with a significant portion of contracts coming from Europe. This expansion in backlog signifies long-term visibility and demand for Elbit’s advanced systems.

Segment Performance

The third-quarter revenue figures shed light on various segments:

• - Aerospace revenues experienced a slight drop of 3%, largely due to lower Precision Guided Munition sales in the Asia-Pacific region. However, there was notable growth in other sectors.
• - C4I and Cyber divisions reported a 14% increase, mainly driven by the sales of radio and command and control systems in Europe.
• - The ISTAR and EW segments saw a 5% uptick, fueled by strong sales of electro-optical and electronic warfare systems in Israel.
• - Land systems revenues surged by 41%, prominently due to ammunition sales in both Israel and Europe.

The company's operational excellence amid geopolitical instability emphasizes its capacity to adapt and fulfill diverse defense requirements. Additionally, the U.S. subsidiary, Elbit Systems of America, saw a 2% decrease in revenues, attributed mainly to a decline in electronic systems sales.

Impact of Global Conflicts

The ongoing conflict in the Middle East, which intensified following the events of October 7, 2023, has notably influenced Elbit Systems’ operations. The company has experienced significantly heightened demand from the Israel Ministry of Defense, indicating the crucial role of their technologies in modern warfare environments. This demand is expected to sustain, reflecting the necessity for advanced defense systems.

Nevertheless, challenges such as disrupted supply chains and operational constraints arising from these conflicts have posed obstacles, such as rising transportation costs and material shortages. Elbit has actively taken measures to safeguard its workforce and ensure production continuity, demonstrating resilience in navigating these complexities.

Future Outlook

Elbit Systems is committed to ongoing investment in research and development, aiming to innovate and provide cutting-edge solutions that address evolving security challenges. Bezhalel (Butzi) Machlis, President and CEO, emphasized the importance of employee dedication and the strategic relevance of their advanced technologies.

With expectations of continued market demand, particularly in Europe and the broader international context, the company’s performance is indicative of a strong foundation for future growth. The next steps will include a conference call update where management will discuss detailed results and answer investor inquiries, emphasizing transparency and proactive communication.

Overall, Elbit Systems is well-positioned within the defense technology landscape, navigating challenges while capitalizing on global opportunities. In line with this, the company remains ready to meet the heightened demand for security solutions worldwide, reinforcing its pivotal role in ensuring national safety across multiple regions.