Core Insights - Elbit Systems Ltd. has been awarded contracts totaling approximately $210 million from the Israel Ministry of Defense for the upgrade of Merkava Main Battle Tanks over a six-year period [1][2]. Contract Details - The contracts involve extensive renewal of electronic assemblies to extend the operational service life of the tanks, along with upgrades to multiple onboard systems, including AI-enhanced electro-optical sights for improved observation and target tracking [2]. - The contracts also encompass the supply of spare parts and comprehensive maintenance and support services [2]. Company Overview - Elbit Systems is a leading global defense technology company, employing around 20,000 people across five continents and reporting revenues of $1,922 million for the three months ended September 30, 2025 [4]. - The company has an order backlog of $25.2 billion as of the same date, indicating strong demand for its advanced defense solutions [4]. Leadership Statement - Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, emphasized the company's commitment to enhancing the technological capabilities of the Israel Defense Forces through these contracts [3].

Core Insights - Elbit Systems Ltd. is a prominent player in the defense technology sector, known for its advanced solutions across various domains including aerospace, land, and naval systems [1] - The company reported an earnings per share (EPS) of $2.80 for Q3 2025, exceeding the expected EPS of $2.75, indicating strong financial performance [2][4] - Despite reporting revenues of $1.92 billion, which fell short of the Zacks Consensus Estimate by 3.66%, this figure represents a year-over-year increase from $1.72 billion [2][4] - Elbit Systems has demonstrated resilience by surpassing consensus revenue estimates three times in the last four quarters [2] - The company maintains a robust order backlog of $25.2 billion, reflecting strong demand for its products [3][4] Financial Performance - The GAAP net income for Q3 2025 was reported at $133.4 million, while the non-GAAP net income was $159.8 million, providing a comprehensive view of the company's performance [3] - Gross profit for the quarter was approximately $472.9 million, with an operating income of around $157.8 million [3] - EBITDA for the quarter stood at roughly $199.9 million, indicating strong operational efficiency [3] - The cost of revenue for the quarter was approximately $1.5 billion, showcasing effective expense management by the company [3]

Financial Data and Key Metrics Changes - Third Quarter 2025 revenues were $1,922 million, a 12% increase from $1,718 million in the Third Quarter of 2024, with 18% growth for the nine months ended September 30 [4][10] - GAAP gross margin improved to 24.9% in the Third Quarter from 24% in the same quarter last year, while non-GAAP gross margin rose to 25.2% from 24.4% [5][8] - GAAP diluted EPS increased to $2.80 from $1.77 year-over-year, and non-GAAP diluted EPS rose to $3.35 from $2.21 [8] Business Line Data and Key Metrics Changes - Aerospace segment revenues decreased by 3% year-over-year, primarily due to lower precision-guided munitions sales in Asia-Pacific, offset by increases in Israel and Europe [8] - SIFRAE and CYBER revenues increased by 14% year-over-year, driven by sales in Europe [9] - Land segment revenues surged by 41% in the third quarter, attributed to ammunition and munitions sales in Israel and Europe [9] Market Data and Key Metrics Changes - Revenue contributions for the Third Quarter 2025 were as follows: Europe 28%, North America 21%, Asia-Pacific 14%, and Israel 33% [4] - The order backlog as of September 30, 2025, was $25.2 billion, an increase of $3.1 billion from the same quarter last year [10] Company Strategy and Development Direction - The company aims to focus on growth outside of Israel, particularly in Europe, as indicated by a backlog increase of $1.2 billion from international orders [22] - Elbit Systems is expanding its operations in Europe with new facilities in Sweden and Germany to enhance local delivery capabilities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by strong demand for solutions, particularly in Europe and Israel, amidst rising global defense budgets [11] - The company anticipates that the ceasefire will allow for a return to normal business operations and potentially more opportunities for new business [36] Other Important Information - The Board of Directors declared a dividend of $0.75 per share to be paid on January 5, 2026, reflecting the company's strong financial performance [10] - Elbit signed a significant international contract worth approximately $2.3 billion, marking the largest contract in the company's history [12] Q&A Session Summary Question: How enduring is domestic demand with the ceasefire? - Management noted an increase in backlog, with $200 million in Israel and $1.2 billion outside Israel, indicating a focus on growth outside Israel, especially in Europe [22] Question: What is the outlook for the air and aerospace business? - Management expects continued growth in the aerospace segment, driven by international sales and demand for UAVs [25][26] Question: Are there opportunities in directed energy solutions? - Management confirmed significant interest in high-powered laser systems, with potential orders expected based on success in Israel [28][30] Question: What are the drivers behind the strong margin performance? - The margin expansion is attributed to improved backlog profitability and operational excellence initiatives, including AI utilization [34][35] Question: Any updates on profitability targets for 2026? - Management refrained from providing specific targets but emphasized ongoing efforts to improve profitability and cash conversion [40] Question: How does Elbit plan to leverage the US DOD's budget expansion? - Management highlighted the strategic importance of the US market and ongoing exploration of acquisition opportunities [41][42]

Financial Data and Key Metrics Changes - Third Quarter 2025 revenues were $1,922 million, a 12% increase from $1,718 million in the Third Quarter of 2024, with 18% growth for the nine months ended September 30 [4][10] - GAAP gross margin improved to 24.9% in the Third Quarter from 24% in the same quarter last year, while non-GAAP gross margin rose to 25.2% from 24.4% [5][8] - GAAP diluted EPS increased to $2.80 from $1.77 year-over-year, and non-GAAP diluted EPS rose to $3.35 from $2.21 [8] Business Line Data and Key Metrics Changes - Aerospace segment revenues decreased by 3% year-over-year, primarily due to lower precision-guided munitions sales in Asia-Pacific, offset by increases in Israel and Europe [8] - SIFRAE and CYBER revenues increased by 14% year-over-year, driven by sales in Europe [9] - Land segment revenues surged by 41% in the third quarter, attributed to ammunition and munitions sales in Israel and Europe [9] Market Data and Key Metrics Changes - Revenue contributions for the Third Quarter 2025 were as follows: Europe 28%, North America 21%, Asia-Pacific 14%, and Israel 33% [4] - The order backlog as of September 30, 2025, was $25.2 billion, an increase of $3.1 billion from the previous year [10] Company Strategy and Development Direction - The company aims to focus on growth outside of Israel, particularly in Europe, as indicated by a $1.4 billion increase in backlog, with $1.2 billion from international orders [22] - The company is expanding operations in Europe, opening new facilities in Sweden and Germany to enhance local delivery capabilities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by strong demand for solutions, particularly in Europe and Israel, amidst rising global defense budgets [11] - The recent ceasefire is seen as an opportunity to regroup and focus on international business, which constitutes about 70% of the company's operations [36] Other Important Information - The company declared a dividend of $0.75 per share to be paid on January 5, 2026, reflecting strong cash generation with quarterly free cash flow of $101 million [10] - A significant international contract worth approximately $2.3 billion was signed, marking the largest contract in the company's history [12] Q&A Session Summary Question: How enduring is domestic demand with the ceasefire? - Management noted a $1.4 billion increase in backlog, with growth expected predominantly outside of Israel, especially in Europe [22] Question: What is the outlook for the air and aerospace business? - Management anticipates continued growth in the aerospace segment, driven by international sales and demand for UAVs [25][26] Question: What are the opportunities in directed energy? - Management confirmed strong interest in high-powered laser systems, with potential for significant orders following successful deployments in Israel [28][30] Question: What are the drivers behind the strong margin performance? - The margin expansion is attributed to improved backlog profitability and operational excellence initiatives, including AI utilization [34] Question: How does the company plan to leverage the US DOD's budget expansion? - Management highlighted ongoing success in the US market and plans for further acquisitions and investments to enhance their position [41][42]

Financial Data and Key Metrics Changes - Third Quarter 2025 revenues were $1,922 million, a 12% increase from $1,718 million in the Third Quarter of 2024, with 18% growth for the nine months ended September 30 [5][6] - GAAP gross margin for the Third Quarter was 24.9%, up from 24% in the same quarter last year, while non-GAAP gross margin increased to 25.2% from 24.4% [6][8] - GAAP diluted EPS was $2.80 for the Third Quarter of 2025, compared to $1.77 in the Third Quarter of 2024, with non-GAAP diluted EPS rising to $3.35 from $2.21 [8][11] Business Line Data and Key Metrics Changes - Aerospace segment revenues decreased by 3% year-over-year, primarily due to a decline in precision-guided munitions sales in Asia-Pacific, partially offset by increased sales in Israel and Europe [8][10] - SIFRAE and CYBER revenues increased by 14% year-over-year, driven by sales of radio systems and command-and-control systems in Europe [9] - Land segment revenues surged by 41% in the third quarter, attributed to ammunition and munitions sales in Israel and Europe [10] Market Data and Key Metrics Changes - Europe contributed 28% to total revenues, North America 21%, Asia-Pacific 14%, and Israel 33% [5] - The order backlog as of September 30, 2025, was $25.2 billion, an increase of $3.1 billion from the previous year, with 69% of the backlog from orders outside of Israel [10][11] Company Strategy and Development Direction - The company continues to focus on R&D investments to secure future growth and maintain its market leadership [6] - Recent contracts include a $2.3 billion international contract and a $1.625 billion contract with a European country, indicating strong demand for advanced defense solutions [13][14] - Expansion in Europe includes new facilities in Sweden and Germany to enhance local delivery capabilities [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by strong demand for solutions, particularly in Europe and Israel, despite potential domestic demand fluctuations [12][23] - The company anticipates growth opportunities in high-powered laser systems and UAVs, with significant interest from international markets [30][31] Other Important Information - Cash flow from operating activities for the nine months ended September 30, 2025, was $461 million, significantly higher than $82.5 million in the same period last year [11] - The Board of Directors declared a dividend of $0.75 per share to be paid on January 5, 2026 [11] Q&A Session Summary Question: How enduring is domestic demand with the ceasefire? - Management noted an increase of $1.4 billion in backlog, with growth expected predominantly outside of Israel, especially in Europe [23] Question: What is the trajectory for the air and aerospace business? - Management expects continued growth in the aerospace segment, driven by international sales and demand for UAVs [27][28] Question: What are the opportunities in directed energy? - Management confirmed significant interest in high-powered laser systems, with potential for growth in both domestic and international markets [30][31] Question: What are the drivers of margin expansion? - Margin expansion was attributed to improved backlog profitability and operational excellence, including AI utilization and CapEx investments [34][36] Question: How will the company leverage the US DOD's budget expansion? - Management sees the US market as strategic and is exploring acquisition opportunities while expanding operations in border protection applications [42][44]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Highlights - Elbit Systems' market capitalization is approximately $24 billion[7] - The company's order backlog reached $252 billion as of September 30, 2025[7] - Revenues for the Last Twelve Months (LTM) Q3 2025 were $77 billion, compared to $65 billion in LTM Q3 2024[7] - Non-GAAP diluted net earnings per share (EPS) for Q3 2025 was $335, a 52% increase from $221 in Q3 2024[24] - Free cash flow in Q3 2025 was a positive $96 million, a significant increase of $100 million compared to $5 million in Q3 2024[24] - The company distributed $89 million in dividends to shareholders in 2024[48] Revenue Breakdown (LTM 2025) - Europe accounted for 27% of revenues[29] - Asia-Pacific (APAC) contributed 15% to revenues[29] - North America represented 21% of revenues[30] - Israel accounted for 33% of revenues[30] Growth and Backlog - The company experienced a backlog Compound Annual Growth Rate (CAGR) of 18% and a revenue CAGR of 11% from 2020 to 2025[33] - The order backlog increased from $2261 billion in 2024 to $2521 billion in LTM Q3 2025[33] Capital Allocation - Elbit Systems invested $466 million in Research and Development (R&D) in 2024[45] - Capital expenditures (CAPEX) amounted to $215 million in 2024[46]

Core Insights - Elbit Systems reported quarterly earnings of $3.35 per share, exceeding the Zacks Consensus Estimate of $2.75 per share, and showing an increase from $2.21 per share a year ago, resulting in an earnings surprise of +21.82% [1] - The company posted revenues of $1.92 billion for the quarter ended September 2025, which was 3.66% below the Zacks Consensus Estimate, but an increase from $1.72 billion year-over-year [2] - Elbit shares have appreciated approximately 95% since the beginning of the year, significantly outperforming the S&P 500's gain of 13.4% [3] Earnings Outlook - The future performance of Elbit's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $3.02 on revenues of $2.08 billion, and for the current fiscal year, it is $11.83 on revenues of $7.95 billion [7] Industry Context - The Aerospace - Defense Equipment industry, to which Elbit belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - Moog, another company in the same industry, is expected to report quarterly earnings of $2.24 per share, reflecting a year-over-year change of +3.7%, with revenues projected at $964.02 million, up 5.1% from the previous year [9]

Earnings Release ELBIT SYSTEMS REPORTS THIRD QUARTER 2025 RESULTS Order backlog at $25.2 billion; Revenues of $1.9 billion; GAAP net income of $133.4 million; Non-GAAP net income of $159.8 million; GAAP net EPS of $2.80; Non-GAAP net EPS of $3.35 Exhibit 1 Haifa, Israel, November 18, 2025 – Elbit Systems Ltd. ("Elbit Systems" or the "Company") (NASDAQ and TASE: ESLT), the international high technology defense company, reported today its consolidated results for the third quarter ended September 30, 2025. In ...

Core Insights - Elbit Systems reported strong quarterly results with significant growth in sales and profits, alongside a record order backlog exceeding $25 billion, indicating long-term visibility for future operations [3][14]. Financial Performance - Revenues for Q3 2025 were $1.92 billion, up from $1.72 billion in Q3 2024, reflecting a year-over-year increase of approximately 11.8% [4]. - GAAP net income for Q3 2025 was $133.4 million (6.9% of revenues), compared to $79.1 million (4.6% of revenues) in Q3 2024, marking a 68.5% increase [12]. - Non-GAAP net income for Q3 2025 was $159.8 million (8.3% of revenues), up from $98.8 million (5.8% of revenues) in Q3 2024, representing a 61.7% increase [12]. - GAAP diluted earnings per share (EPS) were $2.80 for Q3 2025, compared to $1.77 in Q3 2024, while non-GAAP diluted EPS were $3.35, up from $2.21 [13]. Revenue Breakdown - Aerospace revenues decreased by 3% year-over-year, primarily due to reduced Precision Guided Munition sales in Asia Pacific, offset by increased sales in Israel [5]. - C4I and Cyber revenues increased by 14%, driven by sales of radio systems and command and control systems in Europe [5]. - Land revenues surged by 41%, mainly due to ammunition and munition sales in Israel and Europe [5]. - Elbit Systems of America revenues decreased by 2%, attributed to lower sales in electronic systems and medical instrumentation [5]. Order Backlog and Market Demand - The order backlog reached $25.2 billion as of September 30, 2025, with approximately 69% of this backlog from international orders [14]. - The ongoing global conflicts and increased defense budgets have led to heightened demand for Elbit Systems' products, particularly from the Israel Ministry of Defense [16]. Operational Challenges - The company faced operational disruptions due to supply chain constraints and increased transportation costs stemming from conflicts in the Middle East [17]. - Elbit Systems has implemented measures to mitigate these disruptions and maintain business continuity [18]. Recent Developments - On November 17, 2025, Elbit Systems signed a strategic international contract valued at approximately $2.3 billion, to be executed over eight years [19]. - The Board of Directors declared a dividend of $0.75 per share, with a record date of December 22, 2025 [20].