ELBIT SYSTEMS REPORTS SECOND QUARTER 2024 RESULTS

Core Insights - Elbit Systems reported a consolidated revenue of $1.6 billion for the second quarter of 2024, reflecting a 12% year-over-year increase from $1.45 billion in the same quarter of 2023 [3][4]. - The company has an order backlog of $21.1 billion, with approximately 69% of this backlog attributed to international orders [13][36]. - Non-GAAP net income for the second quarter of 2024 was $93 million, or $2.08 per diluted share, compared to $73.5 million, or $1.65 per diluted share, in the second quarter of 2023 [11][12]. Financial Performance - Revenues for the second quarter of 2024 were $1,626.2 million, up from $1,453.9 million in the second quarter of 2023 [4]. - Non-GAAP gross profit was $396.2 million, representing 24.4% of revenues, compared to $379.3 million or 26.1% of revenues in the same quarter of 2023 [6]. - GAAP net income attributable to shareholders was $78 million, up from $62.4 million in the second quarter of 2023 [11]. Segment Performance - Aerospace revenues remained stable compared to the second quarter of 2023, while C4I and Cyber revenues increased by 11% due to radio systems sales [5]. - ISTAR and EW revenues rose by 9%, driven by sales in Electronic Warfare and Electro-Optic systems in Israel and Asia-Pacific [5]. - Land revenues surged by 37%, primarily due to increased sales of ammunition in Israel [5]. Research and Development - Research and development expenses for the second quarter of 2024 were $116.8 million, or 7.2% of revenues, compared to $93.4 million, or 6.4% of revenues, in the second quarter of 2023 [7]. - Marketing and selling expenses decreased to $87.7 million, or 5.4% of revenues, from $101.7 million, or 7.0% of revenues, in the same quarter of 2023 [7]. Recent Contracts and Developments - The company was awarded a contract worth approximately $190 million to supply Iron Sting laser and GPS-guided mortar munitions to the Israeli Ministry of Defense [27]. - A contract valued at approximately $340 million for ammunition supply to the Israeli Ministry of Defense was also announced, with a manufacturing facility to be established [28]. - Elbit Systems secured a $270 million contract for rocket artillery supply to an international customer [29]. Impact of Current Events - The ongoing conflict in Israel has led to increased demand for Elbit Systems' products from the Israel Ministry of Defense, with a material rise in orders compared to pre-war levels [15]. - The company has experienced some operational disruptions due to supply chain constraints and employee mobilization for reserve duty, with approximately 6% of employees mobilized as of June 30, 2024 [16]. - Elbit Systems is taking measures to ensure employee safety and maintain production levels, including relocating production lines and increasing inventory [17]. Dividend Declaration - The Board of Directors declared a dividend of $0.50 per share, with a record date of October 15, 2024, and payment scheduled for October 28, 2024 [31]. Conference Call - A conference call was scheduled for August 14, 2024, to discuss the results and answer questions from investors [32].