Defense company Elbit Systems (TASE: ELST; Nasdaq: ELST) continues to enjoy growing demand for its products, as the war in the Gaza Strip continues, and both its top and bottom lines shot up in the first quarter. The company is traded at near peak levels, with a market cap of $18 billion, 57% higher than at the beginning of this year.
Revenue in the first quarter of 2025 was $1.9 billion, 22% more than the $1.6 billion in the first quarter of 2024. Adjusted net profit grew 45% to $117.2 million ($2.57 per share), from $80.7 million ($1.81 per share) in the corresponding quarter of 2024. The company’s operating profit margin on a non-GAAP basis rose from 7.8% in the corresponding quarter and 8.1% in 2024 as a whole to 8.7% in the first quarter of 2025.
Elbit Systems’ orders backlog continued to grow, reaching $23.1 billion at the end of the first quarter, up $500 million in the quarter. The company says that 66% of the backlog represents orders from outside Israel. 51% is due for delivery during the remainder of 2025 and in 2026.
The proportion of Elbit Systems’ revenue deriving from Israel continued to grow in the first quarter, reaching 32.1%. In 2023, Israel accounted for 19.5% of the company’s revenue, and in 2024 29.1%. Nevertheless, the company continued to report growth in revenue from all the geographical regions in which it operates.
Elbit Systems president and CEO Bezhalel Machlis said, “Elbit Systems announces today another set of strong financial results posting double-digit growth in revenues, operating income and earnings per share for the fourth consecutive quarter, as numerous global conflicts serve to increase defense budgets.
“We believe Elbit is well positioned to capture and benefit from the opportunities of increasing defense budgets globally and particularly in Europe with our well established subsidiaries across the continent as evident in our published contract wins.”
Published by Globes, Israel business news – en.globes.co.il – on May 20, 2025.
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