Security tensions around the world continue to boost the results of Elbit Systems (TASE: ESLT; Nasdaq: ESLT). The Israeli defense company reported an orders backlog of $23.8 billion at the end of the second quarter. At the same time as releasing its quarterly results, Elbit Systems also reported an order worth over $1.6 billion from a European country.
Elbit recorded revenue of $1.9 billion in the second quarter, 21% more than in the corresponding quarter of 2024. On a non-GAAP basis, its net profit for the quarter was $151 million ($3.23 per share), 63% higher than in the corresponding quarter.
The outstanding figure in the company’s financials, however, is the $23.8 billion backlog, which is $700 million higher than at the end of the previous quarter. About 68% of the current backlog represents orders from outside of Israel, and about 46% of the total is scheduled to be performed during the remainder of 2025 and in 2026.
As the Swords of Iron war continues, the share of the Israeli Ministry of Defense in Elbit’s sales has risen substantially, reaching 34% ($670.5 million) in the second quarter, up from 27.3% in the corresponding quarter, although slightly below the previous quarter’s figure of 34.7%.
Elbit Systems president and CEO Bezhalel Machlis said, “Elbit Systems continues its upward momentum, driven by sustained demand for its proven technologies and solutions. The company’s long-term strategy and investments have positioned the company for continued future growth.
“Elbit Systems’ robust presence in Europe, built through subsidiaries, production infrastructure, and strategic partnerships, has laid the groundwork for securing major contracts that strengthen customer relationships. Elbit Systems’ dedicated employees worldwide continue to be the driving force behind these milestones.”
Huge deal in Europe
Alongside its quarterly financials, Elbit Systems reported a $1.6 billion contract for the supply of a range of defense solutions to a country in Europe, for delivery over a five year period. The order consists of two groups of products.
The first group includes long-range precision strike artillery-rocket systems and a broad-spectrum of unmanned reconnaissance and loitering aerial combat systems, from operational to tactical ranges, including personally operated drones.
In the second group are sophisticated ISTAR capabilities, including SIGINT, COMINT and electronic warfare systems. Enabled intelligence collection and processing systems will also be delivered, along with advanced electro-optical (E/O) and night-vision systems, combat vehicle upgrade, and protective systems.
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In addition, Elbit Systems will deliver comprehensive military digitalization and Network Combat Solution, based on the last software generation and cutting-edge hardware communication equipment. This includes intelligence solutions from the C4ISR suite of command-and-control applications. The company says that this integrated solution covers all operational levels, spanning from the strategic army headquarters down to the tactical level, to the last combat vehicle.
“This contract reflects the strong demand for Elbit Systems’ cutting-edge technologies in Europe and demonstrates our ability to deliver integrated, multi-domain solutions tailored to the needs of modern defense forces,” Machlis said. “This contract also includes industrial cooperation aimed to strengthen the buyer’s national industrial capabilities in the mentioned areas.”
Published by Globes, Israel business news – en.globes.co.il – on August 13, 2025.
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