Elbit Systems (TASE: ESLT; Nasdaq: ESLT), the most valuable Israeli company on the Tel Aviv Stock Exchange and Wall Street, released strong financials yesterday, following which its share price jumped by 11%. On Nasdaq yesterday the share price rose by nearly 16% to $1,014.33, giving the defense company a market cap of $47.13 billion.
At the end of 2025, Elbit Systems had an orders backlog of $28.1 billion, a record figure, and representing growth of $2.9 billion in the fourth quarter and $5.5 billion year-on-year. The growth reflects rising global demand for military hardware as a result of the conflict in the Middle East and in Ukraine, as countries revise their defense policies and increase defense spending.
At a conference at the Tel Aviv Stock Exchange, Elbit Systems president and CEO Bezhalel Machlis presented the company’s strategy, which is built upon several principles, among them strategic partnerships with its customers, an international presence through subsidiaries, investment in innovation and R&D, and the company’s people.
“We don’t wait for customers to tell us what they need or for a particular tender. We project our future, in a sense we take a risk, and develop strong systems for which there will be demand later,” Machlis said. “Today we reported that the State of Israel has chosen to develop with Elbit high-powered airborne laser systems, for helicopters and fighter aircraft. The Ministry of Defense is participating in the development. This is an example of long-term investment by Elbit, which yields innovative positioning.”
Machlis said that Elbit Systems’ workforce grew by 2,000 last year to 24,000, or whom 14,000 were in Israel, and he thanked the employees, who he said were the reason for the company’s success. “The market is undergoing very great changes,” he said. “In the Middle East there is a continuing war, and the event in Iran is having a very large impact on the company.” He said that the fighting in Iran involved large amounts of Elbit munitions, such as precision bombs and UAVs used to destroy missile batteries and launchers. “Elbit’s involvement in the fighting in Iran is substantial, and it affects other countries in the region in some of which we are active,” Machlis said, and mentioned that Elbit did business in the UAE through a subsidiary.
“This is in addition to other conflicts around the world: the Russia-Ukraine war which has given rise to significant procurement in Europe, rising tension between the US and China, and recently increased tension between India and Pakistan,” Machlis added. All these tensions and hostilities have led to a rise in defense budgets, and a desire on the part of countries to procure weapons systems “here and now” and to obtain proven operational solutions as early as possible. A further trend is that countries are seeking to reduce their dependence on external entities in the supply chain and to produce at home, and Elbit is prepared for that through its subsidiaries around the world.
Machlis also commented on some of Elbit’s broad product portfolio, for example energy systems. “High-power laser is an example of an energy weapon that changes the cost calculation for defensive munitions. We are a supplier to the Iron Beam system which is currently being delivered to the Air Force, and today we disclosed that after very many years of investment the Ministry of Defense will participate with us in development and initial procurement of an airborne laser system,” he said, adding that in the previous round of fighting with Iran, fighter aircraft fired air-to-air missiles at every aerial threat, and that the cost of this was unsustainable in the long term, since each missile cost millions.
Elbit beats estimates
Elbit Systems’ fourth quarter and full-year 2025 results beat analysts’ estimates. Quarterly revenue was over $2.1 billion, 11.3% more than in the corresponding quarter, and in the year as a whole revenue grew by 16.3% to $7.9 billion. On a GAAP basis, net profit attributable to shareholders grew by 86.9% in the fourth quarter to $168 million, and by 66.4% for the year, to $534 million. On a non-GAAP basis, net profit attributable to shareholders was $170 million, or $3.56 per share, in the fourth quarter, and NIS 598 million, or $12.75 per share, for the year. At the end of the year the company had $800 million cash, and long-term bond debt of $238 million. The Board of Directors declared a dividend of $1.00 per share.
Published by Globes, Israel business news – en.globes.co.il – on March 18, 2026.
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