Core Insights - Elbit Systems reported strong financial results for Q2 2025, with revenues of $1.97 billion, a 21% increase year-over-year, and a non-GAAP EPS growth of 55% [3][4][12] - The company's order backlog reached $23.8 billion, with 68% of it attributed to international orders [14][30] - The ongoing "Swords of Iron" conflict has significantly increased demand for Elbit's products from the Israel Ministry of Defense [16][19] Financial Performance - Revenues for Q2 2025 were $1,972.7 million, compared to $1,626.2 million in Q2 2024 [4] - GAAP net income was $125.7 million (6.4% of revenues), up from $78.4 million (4.8% of revenues) in Q2 2024 [12] - Non-GAAP net income was $151.0 million (7.7% of revenues), compared to $92.7 million (5.7% of revenues) in Q2 2024 [12] Segment Performance - Aerospace revenues increased by 12%, driven by Precision Guided Munition sales in Israel and Asia Pacific [5] - C4I and Cyber revenues rose by 21%, mainly due to sales of radio systems and command and control systems [5] - Land revenues surged by 45%, attributed to ammunition sales in Israel and Europe [5] Operational Metrics - GAAP gross profit for Q2 2025 was $472.9 million (24.0% of revenues), consistent with the previous year [6] - Research and development expenses were $129.7 million (6.6% of revenues), up from $116.8 million (7.2% of revenues) in Q2 2024 [7] - General and administrative expenses increased to $93.9 million (4.8% of revenues) due to one-time expenses [8] Cash Flow and Investments - Cash flow from operating activities for the first half of 2025 was $304.0 million, significantly higher than $26.0 million in the same period of 2024 [15] - The company announced a public offering of 1,365,450 ordinary shares, raising approximately $588.8 million [20] Recent Developments - Elbit Systems was awarded a $260 million contract by Airbus Defence and Space for self-protection systems for the German Air Force [22] - The company declared a dividend of $0.75 per share, with a record date of October 14, 2025 [24]

Core Insights - Elbit Systems reported strong financial results for Q1 2025, with revenues of $1.9 billion, a 22% increase from Q1 2024, and a GAAP net income of $107.1 million, reflecting a significant growth trend in the defense sector due to increased global demand [1][3][10]. Financial Performance - Revenues for Q1 2025 were $1,895.8 million, compared to $1,554.0 million in Q1 2024, marking a 22% increase [4]. - GAAP gross profit was $454.3 million (24.0% of revenues) in Q1 2025, slightly down from $374.1 million (24.1% of revenues) in Q1 2024 [6]. - Non-GAAP gross profit for Q1 2025 was $460.6 million (24.3% of revenues), compared to $383.4 million (24.7% of revenues) in Q1 2024 [6]. - GAAP operating income increased to $149.7 million (7.9% of revenues) in Q1 2025 from $105.4 million (6.8% of revenues) in Q1 2024 [8]. - Non-GAAP operating income rose to $165.1 million (8.7% of revenues) in Q1 2025, up from $121.6 million (7.8% of revenues) in Q1 2024 [8]. - GAAP net income attributable to shareholders was $107.1 million (5.6% of revenues) in Q1 2025, compared to $73.7 million (4.7% of revenues) in Q1 2024 [10]. - Non-GAAP net income attributable to shareholders was $117.2 million (6.2% of revenues) in Q1 2025, up from $80.7 million (5.2% of revenues) in Q1 2024 [10]. - GAAP diluted earnings per share were $2.35 in Q1 2025, compared to $1.65 in Q1 2024 [11]. Order Backlog and Cash Flow - The order backlog as of March 31, 2025, totaled $23.1 billion, a 14% increase from Q1 2024 [12]. - Free cash flow generated during the quarter was $161 million [3]. - Cash flow from operating activities was $183.6 million in Q1 2025, compared to cash flow used in operating activities of $6.4 million in Q1 2024 [13]. Segment Performance - Aerospace revenues increased by 20% in Q1 2025, driven by higher Precision Guided Munition sales [5]. - C4I and Cyber revenues grew by 12%, primarily due to sales of radio systems and command and control systems [5]. - Land revenues surged by 48%, attributed to ammunition and munition sales [5]. - Elbit Systems of America revenues rose by 18%, reflecting increased sales in Warfighters systems and medical instrumentation [5]. Market Context - The ongoing "Swords of Iron" war has led to a material increase in demand for Elbit Systems' products from the Israel Ministry of Defense [13][14]. - The company is well-positioned to benefit from increasing defense budgets globally, particularly in Europe [3]. Dividend Declaration - The Board of Directors declared a dividend of $0.60 per share, with a record date of June 24, 2025, and payment scheduled for July 7, 2025 [18].