Elbit Systems-ELBIT SYSTEMS REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

Core Insights - Elbit Systems reported strong financial results for the fourth quarter and full year of 2024, with a backlog of orders totaling $22.6 billion and revenues of$ 6.8 billion, reflecting a 14% increase from 2023 [1][15][31]. Financial Performance - Fourth quarter revenues reached $1,930.2 million, up from$ 1,625.8 million in the same quarter of 2023, marking a significant year-over-year growth [4][15]. - Non-GAAP net income for the fourth quarter was $119.3 million (6.2% of revenues), compared to$ 69.7 million (4.3% of revenues) in the fourth quarter of 2023 [13][31]. - GAAP net income for the fourth quarter was $90.0 million (4.7% of revenues), up from$ 30.0 million (1.8% of revenues) in the fourth quarter of 2023 [13][31]. - For the full year 2024, non-GAAP net income attributable to shareholders was $391.5 million (5.7% of revenues), compared to$ 298.8 million (5.0% of revenues) in 2023 [31]. - GAAP net income for the full year was $321.1 million (4.7% of revenues), an increase from$ 215.1 million (3.6% of revenues) in 2023 [31]. Revenue Segmentation - Aerospace revenues increased by 27% in Q4 2024, driven by higher UAS revenues in Israel and Europe, and increased Precision Guided Munition (PGM) revenues [5]. - C4I and Cyber revenues rose by 7%, primarily due to sales of radio systems and command and control systems [5]. - Land revenues surged by 29%, mainly due to increased sales of ammunition and munitions in Israel [5][16]. - Elbit Systems of America revenues increased by 6%, attributed to higher sales of night-vision systems and medical instrumentation [5]. Operational Highlights - The company generated $320 million in free cash flow during the fourth quarter [3]. - Research and development expenses for Q4 2024 were$ 131.2 million (6.8% of revenues), compared to $117.4 million (7.2% of revenues) in Q4 2023 [7][19]. - Marketing and selling expenses for Q4 2024 were$ 107.2 million (5.6% of revenues), up from $91.3 million (5.6% of revenues) in Q4 2023 [7][20]. - General and administrative expenses decreased to$ 85.4 million (4.4% of revenues) in Q4 2024, down from $105.9 million (6.5% of revenues) in Q4 2023 [8][20]. Backlog and Future Outlook - The order backlog as of December 31, 2024, was$ 22.6 billion, an increase from $17.8 billion at the end of 2023, with approximately 65% of the backlog from international orders [33]. - About 57% of the current backlog is scheduled for execution in 2025 and 2026 [33]. - The company has experienced increased demand for its products from the Israel Ministry of Defense due to the ongoing conflict, with contracts awarded totaling over$ 5 billion during 2024 [34][35].