Elbit Systems(US:ESLT)2024-11-19 11:01Financial Performance - Revenues for Q3 2024 were $1.7175 billion, up from $1.5016 billion in Q3 2023, representing a growth of 14.4%[5] - Non-GAAP net income was $98.8 million (5.8% of revenues) for Q3 2024, compared to $76.5 million (5.1% of revenues) in Q3 2023, reflecting a 29.1% increase[13] - GAAP net income for Q3 2024 was $79.1 million (4.6% of revenues), up from $60.7 million (4.0% of revenues) in Q3 2023, marking a 30.5% increase[13] - Non-GAAP diluted earnings per share were $2.21 for Q3 2024, compared to $1.71 for Q3 2023, an increase of 29.2%[13] - For the nine months ended September 30, 2024, GAAP gross profit was $1,176.6 million, an increase from $1,100.8 million for the same period in 2023, representing a growth of 6.9%[28] - Non-GAAP net income attributable to Elbit Systems' shareholders for the nine months ended September 30, 2024, was $272.2 million, compared to $229.0 million for the same period in 2023, reflecting an increase of 18.9%[28] - GAAP diluted net EPS for the nine months ended September 30, 2024, was $5.18, compared to $4.15 for the same period in 2023, an increase of 24.9%[28] - Total revenues for the nine months ended September 30, 2024, increased to $4,897.7 million, up 12.6% from $4,349.0 million in the same period of 2023[46] - Operating income for the nine months ended September 30, 2024, rose to $347.7 million, a 15.3% increase from $301.5 million in the same period of 2023[46] - Net income attributable to Elbit Systems Ltd.'s shareholders for the nine months ended September 30, 2024, was $231.1 million, compared to $185.1 million in the same period of 2023, reflecting a growth of 24.9%[46] Revenue Breakdown - Revenue from Israel increased to $1,395.1 million, accounting for 28.5% of total revenue, compared to $730.0 million and 16.8% in the previous year[49] - North America revenue rose to $1,082.4 million, representing 22.1% of total revenue, slightly up from $1,049.6 million and 24.1% in the prior year[49] - Europe generated $1,287.2 million in revenue, making up 26.3% of total revenue, down from $1,329.7 million and 30.6% in the previous year[49] - Asia-Pacific revenue decreased to $858.4 million, representing 17.5% of total revenue, compared to $968.1 million and 22.3% in the previous year[49] Segment Performance - Aerospace revenues increased by 7%, C4I and Cyber revenues by 13%, ISTAR and EW revenues by 13%, and Land revenues by 24% in Q3 2024 compared to Q3 2023[6] - The Aerospace segment reported external customer revenue of $1,216.2 million for the nine months ended September 30, 2024, up from $1,188.1 million in the same period last year[50] - C4I and Cyber segment external customer revenue increased to $558.4 million, compared to $490.7 million in the previous year[50] - ISTAR and EW segment external customer revenue rose to $832.8 million, up from $735.6 million in the prior year[50] - Land segment external customer revenue increased significantly to $1,144.0 million, compared to $884.7 million in the previous year[50] - Total revenues from reportable segments for the nine months ended September 30, 2024, were $5,340.4 million, up from $4,769.2 million in the previous year[50] Cash Flow and Investments - Cash flow from operating activities was $82.5 million for the nine months ended September 30, 2024, compared to cash flow used of $200.0 million in the same period of 2023[14] - The company reported a net cash provided by operating activities of $82.5 million for the nine months ended September 30, 2024, compared to a net cash used of $200.0 million in the same period of 2023[48] - The company invested approximately $87 million in new manufacturing facilities during the nine months ended September 30, 2024[48] Order Backlog and Contracts - The order backlog reached a record high of $22.1 billion, with approximately 66% of it from international orders[13] - The company was awarded a contract worth approximately $200 million by the Israeli Ministry of Defense for high-power laser systems for the "Iron Beam" air defense system[30] - A follow-on contract of approximately $127 million was awarded for the supply of Iron Fist Active Protection Systems to General Dynamics, to be performed over 34 months[31] - Contracts totaling approximately $335 million were awarded to supply defense systems to a European country, including PULS™ rocket launchers and Hermes™ 900 Unmanned Aircraft Systems[32] Research and Development - Research and development expenses were $119.9 million (7.0% of revenues) in Q3 2024, up from $103.3 million (6.9% of revenues) in Q3 2023[9] - Research and development expenses for the nine months ended September 30, 2024, were $335.2 million, representing an increase of 9.2% from $307.1 million in the same period of 2023[46] Operational Challenges - Approximately 8% of employees were recruited for reserve duty as of September 30, 2024, impacting operations and supply chains[18] Dividends - The Board of Directors declared a dividend of $0.50 per share, with a record date of December 23, 2024[33]