GREENWICH, Conn., Aug. 25, 2025 (GLOBE NEWSWIRE) -- Gabelli Funds, LLC, is hosting our annual Aerospace & Defense Symposium at The Harvard Club in New York City on September 4th. The conference will draw top executives from more than ten companies, with a focus on the themes of strong demand outlook, high barriers to entry, large aftermarket opportunity, growth in excess of GDP, defense spending, and M&A potential for the Aerospace and Defense industry. Attendees will also have the opportunity to meet with ...

Core Insights - Elbit Systems has secured a significant $1.635 billion contract with a European country, enhancing its role as a prime systems integrator in the defense sector [2][3] - The company reported a strong second-quarter earnings performance, with non-GAAP EPS of $3.23, exceeding analyst expectations of $2.57, and revenue growth of 21% year-over-year to $1.97 billion [3][4] - Elbit's order backlog reached a record $23.8 billion, providing multi-year revenue visibility and indicating strong future growth potential [6][7] Financial Performance - The company's revenue for the second quarter was $1.97 billion, reflecting a 21% increase from the previous year [4] - Non-GAAP EPS increased by 55% to $3.23, significantly surpassing the consensus estimate [3][4] - The board raised the quarterly dividend by 25% to 75 cents per share, signaling confidence in sustained profitability [3][8] Market Position and Strategy - Elbit Systems is strategically positioned to benefit from rising global defense budgets, which are driving demand for advanced technologies [10] - The company's glocal strategy, operating through local subsidiaries, helps mitigate geopolitical risks and fosters trust in key markets [11] - 68% of the order backlog comes from international customers, showcasing a successful diversification strategy [7] Business Segment Performance - Revenue from Land Systems increased by 45% year-over-year, driven by high demand for ammunition and advanced munitions [9] - C4I and Cyber revenue grew by 21%, supported by sales of modern command, control, and communications systems [9] - ISTAR and EW revenue rose by 15%, highlighting the importance of advanced intelligence and electronic warfare solutions [9]

Financial Data and Key Metrics Changes - The company reported second quarter 2025 revenues of $1,973 million, up from $1,626 million in 2024, reflecting a year-over-year growth of approximately 21.3% [6][7] - GAAP gross margin remained stable at 24% compared to the same quarter in 2024, while non-GAAP gross margin was also consistent at 24.4% [7][8] - GAAP operating income increased to $157.8 million (8% of revenues) from $116.5 million (7.2% of revenues) in 2024, indicating improved profitability [8] - Non-GAAP diluted EPS rose to $3.23 in 2025 from $2.08 in 2024, showcasing significant earnings growth [12] Business Line Data and Key Metrics Changes - Aerospace revenue increased by 12% year-over-year, driven by higher sales of precision guided munitions in Israel and Asia Pacific [12] - C4I and fiber revenues grew by 21% year-over-year, primarily due to sales of radio systems and command and control systems in Israel and Europe [13] - Land revenues surged by 45% in 2025, attributed to increased sales of ammunition and munitions in Israel and Europe [13] - IStar and EW revenues rose by 15%, mainly due to electro-optical system sales in Israel and electronic warfare system sales in Europe [13] Market Data and Key Metrics Changes - In 2025, Europe contributed 29% to total revenues, North America 21%, Asia Pacific 13%, and Israel 34% [7] - The order backlog as of June 30, 2025, was $23.8 billion, reflecting a 12% increase from the corresponding quarter in 2024 [6][14] - Approximately 68% of the current backlog is from international orders, with 46% scheduled for delivery in 2025 and 2026 [14] Company Strategy and Development Direction - The company plans to utilize proceeds from a recent share offering of $573 million to support future business growth and expand production capacity [17] - There is a focus on mergers and acquisitions to acquire new technologies and expand global reach [17] - The company aims to enhance its operational capabilities and market presence, particularly in Europe, through significant new contracts [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong financial performance, with internal targets indicating double-digit growth for 2026 [37] - The geopolitical situation in the Middle East has increased demand for defense solutions, positioning the company favorably in the market [53][58] - Management highlighted the importance of operational experience and a wide portfolio in meeting customer needs and driving growth [56][58] Other Important Information - The company declared a dividend of $0.75 per share, a 50% increase from the previous year, reflecting strong financial performance [15] - The effective tax rate decreased to 5.6% in 2025 from 13.2% in 2024, primarily due to increased deferred tax assets [12] Q&A Session Summary Question: Margin expansion outlook for the second half of the year - Management indicated a commitment to margin expansion through operational leverage and new ERP systems, aiming for continued improvement [28] Question: Updates on IronBeam and supply chain for SRMs - The company is developing high-power laser sources for IronBeam, with initial deliveries expected soon and strong interest from international customers [29][30] Question: Year-to-date growth and outlook for 2026 - Management confirmed internal targets for mid-teens growth in 2025 and double-digit growth for 2026, supported by a strong backlog [36][37] Question: Sustainability of land segment growth - The land segment is expected to continue growing due to high demand for various products, including ammunition and advanced systems [40][41] Question: Future development plans for UAS counter-drone measures - The company is actively developing the RidgeOne system, which combines various technologies and has seen successful exports to NATO countries [48][50] Question: Capital expenditure expectations for 2025 - The running rate for capital investments is around $250 million, with potential increases based on recent funding [51] Question: Impact of geopolitical positioning on demand - The company is experiencing increased demand for defense solutions and is well-positioned to offer advanced capabilities to international customers [53][58]

Financial Data and Key Metrics Changes - The company reported revenues of $1,973 million for Q2 2025, up from $1,626 million in Q2 2024, reflecting a year-over-year growth of approximately 21.4% [5] - GAAP gross margin remained stable at 24% compared to the same quarter in 2024, while non-GAAP gross margin was 24.4% for both years [6] - GAAP operating income increased to $157.8 million (8% of revenues) from $116.5 million (7.2% of revenues) in the previous year, indicating improved profitability [6] - Non-GAAP diluted EPS rose to $3.23 in 2025 from $2.08 in 2024, showcasing significant earnings growth [9] Business Line Data and Key Metrics Changes - Aerospace revenue grew by 12% year-over-year, driven by increased sales of precision guided munitions and UAS in Israel and Asia Pacific [9] - C4I and fiber revenues saw a 21% increase, primarily due to sales of radio systems and command and control systems in Israel and Europe [10] - Land revenues surged by 45%, attributed to ammunition and munitions sales in Israel and Europe [10] - IStar and EW revenues increased by 15%, mainly due to sales of electro-optical systems and electronic warfare systems [10] Market Data and Key Metrics Changes - In Q2 2025, Europe contributed 29% to total revenues, North America 21%, Asia Pacific 13%, and Israel 34% [5] - The order backlog as of June 30, 2025, was $23.8 billion, reflecting a 12% increase from the same quarter in 2024 [4][11] - Approximately 68% of the current backlog is from international orders, with 46% scheduled for delivery in 2025 and 2026 [11] Company Strategy and Development Direction - The company plans to utilize proceeds from a recent share offering of $573 million to support future business growth and potentially engage in M&A activities [13] - The company aims to expand its footprint in Europe, as evidenced by recent contract wins and ongoing projects [16][17] - Investment in R&D remains a priority, with net R&D expenses at $129.7 million, representing 6.6% of revenues [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued double-digit growth, supported by a strong backlog and robust demand across all segments [22][27] - The geopolitical situation in the Middle East has created increased demand for defense solutions, positioning the company favorably in the market [41][45] - The company is optimistic about future opportunities, citing unprecedented demand for its advanced solutions globally [45] Other Important Information - The board of directors declared a dividend of $0.75 per share, a 50% increase from the previous year [12] - The company is progressing with the construction of a new production site, expected to enhance operational efficiency with AI and robotic solutions [19] Q&A Session Summary Question: Margin expansion outlook for the second half of the year - Management highlighted ongoing efforts to improve margins through operational leverage and new ERP systems, aiming for continued margin expansion [22] Question: Updates on IronBeam and supply chain for SRMs - The company is developing high-power laser sources for IronBeam, with initial deliveries expected soon and strong interest from international customers [24] Question: Year-to-date growth and outlook for 2026 - Management confirmed internal targets for mid-teens growth in 2025 and double-digit growth for 2026, supported by a strong backlog [27][28] Question: Sustainability of land segment growth - The land segment experienced a 45% increase, driven by high demand for various products, and is expected to continue growing [30][31] Question: CapEx investments and future plans - Current CapEx investment is around $250 million, with plans to expand based on recent funding from a follow-on offering [39] Question: Geopolitical challenges and defense demand - Management noted a growing global demand for defense solutions, leveraging operational experience and a wide portfolio to meet customer needs [41][43]

Investor Presentation A u g u s t 2025 // 2 DISCLAIMER This presentation, reference to which herein includes information that may be provided by Elbit Systems Ltd. ("Elbit systems", and collectively with any or all of its subsidiaries, the "Company") orally or in writing in connection therewith, is provided for general information only, and should not be relied upon for making any investment decision. By attending or viewing this presentation, each attendee ("Attendee") agrees that he or she (i) has read th ...

Core Viewpoint - Elbit Systems has secured a $1.635 billion contract to provide advanced defense solutions to a European country, with implementation expected over a 5-year period [1][4]. Group 1: Contract Details - The contract encompasses two groups of technologically advanced solutions, including long-range precision strike artillery-rocket systems and unmanned reconnaissance systems [2]. - The second group features sophisticated ISTAR capabilities, including SIGINT, COMINT, electronic warfare systems, and advanced electro-optical and night-vision systems [3]. Group 2: Company Overview - Elbit Systems is a leading global defense technology company, employing approximately 20,000 people across five continents and reporting $1.9 billion in revenues for the three months ended March 31, 2025 [5][6]. - The company has an order backlog of $23.1 billion as of the same date, indicating strong demand for its solutions [6]. Group 3: Leadership Statement - Bezhalel Machlis, President and CEO of Elbit Systems, emphasized the strong demand for the company's technologies in Europe and the importance of this contract in enhancing national security [4].

Core Insights - Elbit Systems Ltd. has been awarded two contracts totaling approximately $260 million for advanced airborne munitions to the Israel Ministry of Defense [1][2] - The contracts highlight the company's commitment to providing cutting-edge technologies that enhance the operational readiness of the Israel Defense Forces [2] - Elbit Systems aims to expand its portfolio of advanced solutions, which are expected to attract global interest due to their relevance to emerging operational needs [2] Company Overview - Elbit Systems is a leading global defense technology company, focusing on delivering advanced solutions for security and safety [3] - The company employs around 20,000 people across five continents and reported revenues of $1.9 billion for the three months ending March 31, 2025, with an order backlog of $23.1 billion [4]

Core Viewpoint - Elbit Systems Ltd. will announce its Second Quarter 2025 financial results on August 13, 2025, and will host a conference call to discuss these results [1][2]. Financial Results Announcement - The financial results will be published on August 13, 2025, at 9:00am ET [1]. - A conference call will take place on the same day at 9:00am ET, where management will review the results and answer questions [2]. Company Overview - Elbit Systems is a leading global defense technology company, providing advanced solutions for security and safety [4]. - The company employs approximately 20,000 people across five continents and reported revenues of $1.9 billion for the three months ended March 31, 2025 [5]. - As of March 31, 2025, Elbit Systems had an order backlog of $23.1 billion [5].

Group 1 - Elbit Systems was awarded a contract worth approximately $260 million by Airbus Defence and Space to supply J-MUSIC™ DIRCM self-protection systems for the German Air Force A400M transport aircraft, to be executed over a 6-year period [1] - The J-MUSIC™ DIRCM system is designed to defend aircraft against infrared-guided missile threats, utilizing advanced laser technology and high-performance imaging systems for real-time detection and disruption of incoming threats [2][3] - Elbit Systems' DIRCM solutions have been operationally deployed on various military and commercial aircraft globally, with customers including governments and air forces from countries such as Israel, Germany, and Brazil [3] Group 2 - The contract enhances Elbit Systems' position as a leading global provider of DIRCM solutions, with the company expressing pride in supporting Germany's strategic air asset protection [4] - Elbit Systems employs approximately 20,000 people across five continents and reported $1.9 billion in revenues for the three months ended March 31, 2025, with an order backlog of $23.1 billion [6]

Core Insights - All three major U.S. stock indices rose on July 17, 2025, driven by positive retail sales data and a decline in unemployment claims [1][2][11] - Better-than-expected earnings from major tech companies like Netflix contributed to investor confidence [2] - The current market environment suggests a favorable outlook for investing in U.S. stocks, particularly in low-leverage companies [3] Economic Indicators - U.S. retail sales increased by 0.6% in June 2025, following a 0.9% decline in May, exceeding market expectations [1][11] - Labor data indicated a decline in unemployment claims, further supporting market optimism [1] Investment Recommendations - Recommended stocks include Novartis (NVS), ResMed Inc. (RMD), Wabtec (WAB), Elbit Systems (ESLT), and Ingredion Inc. (INGR), all of which are characterized by low leverage and strong earnings growth [3][11] - Each of these stocks holds a Zacks Rank 2, indicating a favorable investment outlook [11] Stock Analysis - Novartis reported a 12% year-over-year increase in net sales and a 29% improvement in earnings per share for Q2 2025 [15][16] - ResMed anticipates an 8.1% year-over-year increase in fiscal fourth-quarter sales, with a long-term earnings growth rate of 15.3% [17][18] - Wabtec's sales are expected to grow by 5.3% year-over-year, supported by a long-term earnings growth rate of 16% [19][20] - Elbit Systems forecasts a 13.8% increase in 2025 sales, with a four-quarter average earnings surprise of 21.12% [21] - Ingredion expects a 1% improvement in 2025 sales, with a long-term earnings growth rate of 11% [22][23]