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ELBIT SYSTEMS REPORTS FIRST QUARTER 2026 RESULTSMay 26, 2026 5:15 AM
PR Newswire (US) Order backlog at $30.2 billion; Revenues of $2.19 billion; GAAP net income of $160.8 million; Non-GAAP net income of $186.4 million; GAAP net EPS of $3.34; Non-GAAP net EPS of $3.87 HAIFA, Israel, May 26, 2026 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or the "Company"), the international high technology defense company, reported today its consolidated results for the first quarter ended March 31, 2026. In this release, the Company is providing US-GAAP results as well as Non-GAAP financial data, which are intended to provide investors with a more comprehensive view of the Company's business results and trends. For a description of the Company's Non-GAAP definitions see page 10 below, "Non-GAAP financial data". Unless otherwise stated, all financial data presented is US-GAAP financial data.Management Comment:Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, stated:"We began 2026 with a strong quarter across all key metrics, including double–digit growth in revenue and profitability, with Non–GAAP operating margins surpassing the 10% mark. Free Cash Flow generation remained very strong during the quarter, with backlog reaching a record level, exceeding $30 billion for the first time.Earlier today, we announced a significant European contract win, further strengthening our position as a trusted strategic partner to customers worldwide and reinforcing our ability to support their evolving defense needs and challenges.Our strategic positioning reflects our evolution into a fully integrated end-to-end defense provider across land, sea and air. With demand rising well above historical levels, we continue to focus on order execution. To meet this demand and support sustainable long-term growth, we are scaling production capacity, increasing the use of automation, robotics and AI, while maintaining strict capital discipline and expanding operational margins. At the same time, we are increasing our investment in R&D and innovation to shape the Company's next-generation offering and strengthen our long-term growth platform."First quarter 2026 results:Revenues in the first quarter of 2026 were $2,188.8 million, as compared to $1,895.8 million in the first quarter of 2025.Aerospace revenues increased by 2% in the first quarter of 2026, as compared to the first quarter of 2025, mainly due to project mix. C4I and Cyber revenues increased by 17%, mainly due to sales of radio systems and command and control systems in Europe. ISTAR and EW revenues increased by 17%, mainly due to increased sales of airborne and land High Power Laser and Electronic Warfare systems. Land revenues increased by 27%, mainly due to ammunition and munition sales in Israel and Europe. Elbit Systems of America revenues increased by 5%, mainly due to the increase in sales of Night-Vision Systems, partially offset by the decrease in sales of medical devices.For distribution of revenues by segments and geographic regions see the tables on page 9.GAAP gross profit in the first quarter of 2026 was $552.1 million (25.2% of revenues), as compared to $454.3 million (24.0% of revenues) in the first quarter of 2025. Non-GAAP(*) gross profit amounted to $558.7 millions (25.5% of revenues) in the first quarter of 2026, as compared to $460.6 million (24.3% of revenues) in the first quarter of 2025.Research and development expenses, net were $150.4 million (6.9% of revenues) in the first quarter of 2026, as compared to $114.3 million (6.1% of revenues) in the first quarter of 2025.Marketing and selling expenses, net were $100.9 million (4.6% of revenues) in the first quarter of 2026 similar to $100.9 million (5.3% of revenues) in the first quarter of 2025.General and administrative expenses, net were $95.7 million (4.3% of revenues) in the first quarter of 2026, as compared to $89.4 million (4.7% of revenues) in the first quarter of 2025.GAAP operating income in the first quarter of 2026 was $205.1 million (9.4% of revenues), as compared to $149.7 (7.9% of revenues) in the first quarter of 2025. Non-GAAP(*) operating income was $222.0 million (10.1% of revenues) in the first quarter of 2026, as compared to $165.1 million (8.7% of revenues) in the first quarter of 2025.Financial expenses, net were $32.2 million in the first quarter of 2026, as compared to $39.0 in the first quarter of 2025. The decrease in financial expenses, net in the first quarter of 2026 was mainly due to a reduction in the average debt.Taxes on income were $22.8 million (effective tax rate of 13.0%) in the first quarter of 2026, as compared to $16.1 million (effective tax rate of 13.9%) in the first quarter of 2025.GAAP net income attributable to the Company's shareholders in the first quarter of 2026 was $160.8 million (7.3% of revenues), as compared to $107.1 million (5.6% of revenues) in the first quarter of 2025. The increase in net income attributable to the Company's shareholders in the first quarter of 2026 was in line with the increase in the Company's activity and order backlog. Non-GAAP(*) net income attributable to the Company's shareholders in the first quarter of 2026 was $186.4 million (8.5% of revenues), as compared to $117.2 million (6.2% of revenues) in the first quarter of 2025.GAAP diluted earnings per share attributable to the Company's shareholders in the first quarter of 2026 were $3.34, as compared to $2.35 in the first quarter of 2025. Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders were $3.87 for the first quarter of 2026, as compared to $2.57 for the first quarter of 2025.The Company's order backlog as of March 31, 2026 totaled $30.2 billion. The increase in backlog during the quarter came mainly from Israel and Asia. Approximately 71% of the current backlog is attributable to orders outside of Israel. Approximately 49% of the order backlog is scheduled to be performed during the remainder of 2026 and 2027. Cash flow provided by operating activities in the first quarter of 2026 was $281.0 million, as compared to cash flow provided by operating activities of $183.6 million in the first quarter of 2025. The cash flow in the first quarter of 2026 was affected mainly by the strong increase in net income and an increase in contract liabilities.* see page 10Impact of the recent conflicts in the Middle East on the Company:The war which began on October 7, 2023, continued throughout most of 2025, with ceasefires agreed to between Israel and Lebanon involving the conflict with Hezbollah in November 2024, and, after an intensified period of conflict that lasted 12 days, a ceasefire was declared with Iran in June 2025. A ceasefire with Hamas was agreed to in January 2025, and a subsequent ceasefire with Hamas was agreed to in October 2025. On February 28, 2026, the U.S. and Israel launched a joint attack on Iran named "Operation Epic Fury" by the U.S., and "Operation Roaring Lion" by Israel, targeting key Iranian officials and targets. Iran launched attacks against Israel and at U.S. military bases across the region, including strikes in Bahrain, Qatar, Saudi Arabia, the United Arab Emirates, Kuwait and Jordan. On March 2, 2026 Hezbollah launched an attack on Israel. After an intensified period of conflict that lasted 40 days, a two-week ceasefire between the United States and Iran, which was subsequently extended, took effect on April 8, 2026, and a separate ten–day cessation of hostilities between Israel and Lebanon, which was subsequently extended, began on April 16, 2026. The current situation remains uncertain, including in light of violations of the cessation of hostilities.Since the commencement of the war and the escalation of conflicts in the Middle East, Elbit Systems has experienced a continued material increase in the demand for its products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels prior to the war. Such increased demand may continue and could generate material additional orders to the Company.As a result of the war and the other conflicts in the Middle East, some of Elbit Systems' operations have experienced disruptions due to supply chain and operational constraints, including among others increases in transportation costs and delays due to factors such as the Houthi movement attacks on shipping in the Red Sea, material and component shortages and elevated prices, employee call-ups for reserve duty, limitations imposed by some countries on engagement with Israel and attacks on some of Elbit Systems' global facilities by anti-Israeli organizations.Elbit Systems has taken various steps to protect its employees worldwide, to support increased production, to increase raw material and component inventories, to mitigate supply chain disruptions and to maintain business continuity. Following the ceasefire agreements described above, these operational effects on the Company have been reduced, however, such effects on the Company's performance could increase again, depending on future developments that are difficult to predict at this time, including the duration and scope of these conflicts and the continuity and stability of the ceasefire arrangements.Recent Events:On April 6, 2026, the Company announced, further to its announcement from December 16, 2025, that as part of an agreement between the Israeli Ministry of Defense and the Hellenic Ministry of National Defense, it was awarded a contract worth approximately $750 million (€650 million) to supply Precise & Universal Launching System (PULS) artillery rocket systems to the Hellenic Armed Forces. The contract will be performed over a period of 4 years and will include an additional ten-year period of follow-on support.On April 22, 2026, the Company announced that during Operation "Roaring Lion", the Company was awarded several contracts in an aggregate amount of approximately $200 million for the supply of advanced airborne munitions to the Israel Ministry of Defense (IMOD).On May 12, 2026, the Company announced that its U.S. subsidiary, Elbit Systems of America – Night Vision LLC ("Elbit Systems of America"), received a delivery order valued at approximately $212 million, for the continued production of the Enhanced Night Vision Goggle - Binocular (ENVG-B) systems for the U.S. Army. Deliveries under the award will take place through 2028.On May 20, 2026, the Company announced that S&P Global Ratings Maalot Ltd., an Israeli rating agency ("S&P Global Ratings"), issued its rating report regarding Elbit Systems (the "Rating Report"). In its Rating Report, S&P Global Ratings raised its long term rating to "ilAAA" (on local scaling) with a stable outlook regarding the Company's Series B, C and D Notes, and reaffirmed its short term rating of "ilA-1+" (on local scaling).On May 26, 2026, the Company announced that it has been awarded a contract valued at approximately $1.4 billion by a European customer for extensive military modernization programs. The contract will be performed over a period of five years.Dividend:The Board of Directors declared a dividend of $1.00 per share. The dividend's record date is June 23, 2026. The dividend will be paid on July 6, 2026, after deduction of withholding tax, at the rate of 16.8%. Conference Call:The Company will be hosting a conference call today, Tuesday, May 26, 2026, at 9:00 a.m. Eastern Time. On the call, management will review and discuss the results and will be available to answer questions.To participate, please call one of the teleconferencing numbers that follow. If you are unable to connect using the toll-free numbers, please try the international dial-in number.US Dial-in Number: 1-866-744-5399
Canada Dial-in Number: 1-866-485-2399
Israel Dial-in Number: 03-918-0644
International Dial-in Number: 972-3-918-0644at 9:00 am Eastern Time; 6:00 am Pacific Time; 4:00 pm Israel TimeThe conference call will also be broadcast live on Elbit Systems' website at https://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends.Alternatively, for two days following the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are: 1-888-782-4291 (US and Canada) or +972-3-925-5900 (Israel and International).About Elbit Systems:Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.Driven by its agile, collaborative culture, and leveraging Israel's technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.Elbit Systems employs over 20,000 people in dozens of countries across five continents. The Company reported $2,188.8 million in revenues for the three months ended March 31, 2026 and an order backlog of $30.2 billion as of such date.For additional information, visit: https://elbitsystems.com/, follow us on X or visit our official Facebook, Youtube and LinkedIn channels.Attachments:Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flows
Consolidated revenue distribution by geographical regions and by segmentsCompany Contact:Dr. Yaacov (Kobi) Kagan, EVP & Chief Financial Officer
Tel: +972-77-2946663
kobi.kagan@elbitsystems.com Daniella Finn, VP, Investor Relations
Tel: +972-77-2948984
daniella.finn@elbitsystems.com Dalia Bodinger, VP, Communications & Brand
Tel: +972-77-2947602
dalia.bodinger@elbitsystems.com This press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward–looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. Therefore, actual future results, performance and trends may differ materially from these forward–looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; including the duration and scope of the war in Israel, and the potential impact on our operations; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward–looking statements speak only as of the date of this press release.Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements.Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this press release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies. All other brand, product, service and process names appearing are the trademarks of their respective holders. Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein.(FINANCIAL TABLES TO FOLLOW) ELBIT SYSTEMS LTD.CONSOLIDATED BALANCE SHEETS(US Dollars in thousands)
As of March 31, 2026
As of December 31, 2025Assets
Cash and cash equivalents$155,248
$635,141Short-term bank deposits
770,017
180,604Trade and unbilled receivables and contract assets, net
3,621,957
3,332,249Other receivables and prepaid expenses
517,459
457,385Inventories, net
3,241,557
3,129,756Total current assets
8,306,238
7,735,135
Investments in affiliated companies and other companies
131,266
126,900Long-term trade and unbilled receivables and contract assets
657,829
719,078Long-term bank deposits and other receivables
89,132
51,601Deferred income taxes, net
89,325
86,679Severance pay fund
223,039
222,555Total
1,190,591
1,206,813
Operating lease right of use assets
503,556
515,620Property, plant and equipment, net
1,417,393
1,382,120Goodwill and other intangible assets, net
1,814,093
1,821,830Total assets$13,231,871
$12,661,518
Liabilities and Equity
Short-term bank credit and loans$—
$50,532Current maturities of long-term loans and Series B, C and D Notes
83,837
83,452Operating lease liabilities
95,432
98,464Trade payables
1,562,479
1,511,671Other payables and accrued expenses
1,590,377
1,549,139Contract liabilities
2,575,599
2,683,180Total current liabilities
5,907,724
5,976,438
Long-term loans, net of current maturities
9,153
18,000Series B, C and D Notes, net of current maturities
239,104
237,625Employee benefit liabilities
489,467
487,760Deferred income taxes and tax liabilities, net
131,186
137,662Contract liabilities
1,506,169
934,256Operating lease liabilities
467,586
476,737Other long-term liabilities
221,278
263,067Total long-term liabilities
3,063,943
2,555,107
Elbit Systems Ltd.'s equity
4,260,189
4,129,598Non-controlling interests
15
375Total equity
4,260,204
4,129,973Total liabilities and equity$13,231,871
$12,661,518 ELBIT SYSTEMS LTD.CONSOLIDATED STATEMENTS OF INCOME(US Dollars in thousands, except for share and per share amounts)
Three months
ended March
31, 2026
Three months
ended March
31, 2025
Year ended
December 31,
2025Revenues$2,188,846
$1,895,801
$7,938,627Cost of revenues
1,636,787
1,441,493
6,003,374Gross profit
552,059
454,308
1,935,253
Operating expenses:
Research and development, net
150,386
114,269
517,142Marketing and selling, net
100,860
100,883
399,437General and administrative, net
95,683
89,449
347,250Total operating expenses
346,929
304,601
1,263,829Operating income
205,130
149,707
671,424
Financial expenses, net
(32,188)
(38,957)
(138,618)Other income, net
1,718
4,946
29,109Income before income taxes
174,660
115,696
561,915Taxes on income
(22,765)
(16,060)
(55,539)
151,895
99,636
506,376
Equity in net earnings of affiliated companies
8,960
7,732
29,243
Net income$160,855
$107,368
$535,619
Less: net income attributable to non-controlling interests
(64)
(285)
(1,280)Net income attributable to Elbit Systems Ltd.'s shareholders$160,791
$107,083
$534,339
Earnings per share attributable to Elbit Systems Ltd.'s
shareholders:
Basic net earnings per share$3.46
$2.40
$11.69Diluted net earnings per share$3.34
$2.35
$11.39
Weighted average number of shares used in computation of:
Basic earnings per share (in thousands)
46,479
44,592
45,710Diluted earnings per share (in thousands)
48,124
45,546
46,918 ELBIT SYSTEMS LTD.CONSOLIDATED STATEMENTS OF CASH FLOW(US Dollars in thousands)
Three
months
ended
March 31,
2026
Three
months
ended
March 31,
2025
Year ended
December
31, 2025CASH FLOWS FROM OPERATING ACTIVITIES
Net income$160,855
$107,368
$535,619Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
45,818
41,876
171,434Stock-based compensation
6,893
5,737
26,391Amortization of Series B, C and D related issuance costs, net
86
110
394Deferred income taxes and reserve, net
(9,122)
(758)
(14,687)Loss on sale of property, plant and equipment
223
276
2,893Loss (gain) on sale of investment, remeasurement of investment held under fair value
method
—
50
(4,518)Equity in net earnings of affiliated companies, net of dividend received(1)
(3,989)
(5,078)
(10,190)Changes in operating assets and liabilities, net of amounts acquired:
Increase in trade and unbilled receivables and prepaid expenses
(326,036)
(131,916)
(659,951)Increase in inventories, net
(111,801)
(91,800)
(357,926)Increase in trade payables, other payables and accrued expenses
56,596
100,040
463,913Severance, pension and termination indemnities, net
(2,807)
(10,129)
(26,328)Increase in contract liabilities
464,333
167,799
651,334Net cash provided by operating activities
281,049
183,575
778,378CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and other assets, net of investment grants and
evacuation grants
(71,160)
(22,670)
(225,568)Investments in affiliated companies and other companies, net
(1,917)
(50)
(2,288)Proceeds from sale of property, plant and equipment
434
371
1,133Proceeds from sale of investments
—
—
15,000Investment in short-term deposits, net
(589,904)
(340,153)
(178,962)Proceeds from sale of (investment in) long-term deposits, net
686
159
(31)Net cash used in investing activities
(661,861)
(362,343)
(390,716)CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares and exercise of options
33
37
573,064Repayment of commercial paper
(48,409)
(40,036)
(301,591)Repayment of long-term bank loans
(8,527)
(7,288)
(11,423)Repayment of Series B, C and D Notes
—
—
(67,496)Dividends paid
(35,336)
(22,273)
(111,693)Change in short-term bank credit and loans and other, net
(6,842)
96,657
(98,733)Net cash provided by (used in) financing activities
(99,081)
27,097
(17,872)
Net increase (decrease) in cash and cash equivalents
(479,893)
(151,671)
369,790CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD$635,141
$265,351
$265,351CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD$155,248
$113,680
$635,141 (*) Dividend received from affiliated companies$4,971
$2,654
$19,053 ELBIT SYSTEMS LTD.DISTRIBUTION OF REVENUES(US Dollars in millions)Consolidated revenues by geographical regions:
Three months
ended March 31,
2026
%
Three months
ended March 31,
2025
%
Year ended
December 31,
2025
%Israel$817.9
37.4
$609.1
32.1
$2,556.4
32.2North America
433.7
19.8
393.1
20.7
1,659.3
20.9Europe
512.3
23.4
456.8
24.1
2,139.5
27.0Asia-Pacific
341.8
15.6
343.3
18.1
1,243.7
15.7Latin America
33.0
1.5
28.1
1.5
99.0
1.2Other countries
50.1
2.3
65.4
3.5
240.7
3.0Total revenue$2,188.8
100.0
$1,895.8
100.0
$7,938.6
100.0 Consolidated revenues by segments:
Three months ended
March 31, 2026
Three months ended
March 31, 2025
Year ended
December 31, 2025Aerospace
External customers$454.8
$448.0
$1,820.9Intersegment revenue
61.8
56.3
246.1Total
516.6
504.3
2,067.0C4I and Cyber
External customers
242.1
204.2
866.2Intersegment revenue
14.6
15.8
64.7Total
256.7
220.0
930.9ISTAR and EW
External customers
371.8
303.5
1,323.5Intersegment revenue
51.3
57.5
202.3Total
423.1
361.0
1,525.8Land
External customers
699.0
539.2
2,250.3Intersegment revenue
15.6
21.6
68.4Total
714.6
560.8
2,318.7ESA
External customers
421.1
400.9
1,677.7Intersegment revenue
2.8
3.3
16.4Total
423.9
404.2
1,694.1Revenues
Total revenues (external
customers and intersegment) for
reportable segments
2,334.9
2,050.3
8,536.5Less - intersegment revenue
(146.1)
(154.5)
(597.9)Total revenues$2,188.8
$1,895.8
$7,938.6 Non-GAAP financial data:The following Non-GAAP financial data, including Non-GAAP gross profit, Non-GAAP operating income, Non-GAAP net income attributable to the Company's shareholders, and Adjusted diluted earnings per share, is presented to enable investors to have additional information on our business performance as well as a further basis for periodical comparisons and trends relating to our financial results. We believe such data provides useful information to investors and analysts by facilitating more meaningful comparisons of our financial results over time. The Non-GAAP adjustments exclude amortization expenses of intangible assets related to acquisitions that occurred mainly in prior periods, capital gains related primarily to the sale of investments, restructuring activities, Non-identified costs in respect to special circumstances, non-cash stock based compensation expenses, revaluations of investments in affiliated companies, non-operating foreign exchange gains or losses, one-time tax expenses, and the effect of tax on each of these items. We present these Non-GAAP financial measures because management believes they supplement and/or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past, and future periods.Specifically, management uses Non-GAAP gross profit, Non-GAAP operating income, and Non-GAAP net income attributable to the Company's shareholders to measure the ongoing gross profit, operating profit and net income performance of the Company because the measure adjusts for more significant non-recurring items, amortization expenses of intangible assets relating to prior acquisitions, and non-cash expense which can fluctuate year to year.We believe Non-GAAP gross profit, Non-GAAP operating income, and Non-GAAP net income attributable to the Company's shareholders are useful to existing shareholders, potential shareholders and other users of our financial information because they provide measures of the Company's ongoing performance that enable these users to perform trend analysis using comparable data.Management uses Non-GAAP diluted net earnings per share attributed to Company's shareholders to evaluate further adjusted net income attributable to the Company's shareholders while considering changes in the number of diluted shares over comparable periods.We believe Non-GAAP diluted net earnings per share attributable to Company's shareholders is useful to existing shareholders, potential shareholders and other users of our financial information because it also enables these users to evaluate adjusted net income attributable to Company's shareholders on a per-share basis.The Non-GAAP measures used by the Company are not based on any comprehensive set of accounting rules or principles. We believe that Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.Investors are cautioned that, unlike financial measures prepared in accordance with GAAP, Non-GAAP measures may not be comparable with the calculation of similar measures for other companies. They should consider Non-GAAP financial measures in addition to, and not as replacements for or superior to, measures of financial performance prepared in accordance with GAAP. Reconciliation of GAAP to Non-GAAP Supplemental Financial Data:(US Dollars in millions, except for per share amounts)
Three
months
ended
March 31,
2026
Three
months
ended
March 31,
2025
Year ended
December 31,
2025GAAP gross profit$552.1
$454.3
$1,935.3Adjustments:
Amortization of purchased intangible assets(*)
3.9
4.0
16.2Stock based compensation
1.0
0.9
4.0Non-identified costs in respect to special circumstances
1.7
1.4
6.3Non-GAAP gross profit$558.7
$460.6
$1,961.8Percent of revenues
25.5 %
24.3 %
24.7 %
GAAP operating income$205.1
$149.7
$671.4Adjustments:
Amortization of purchased intangible assets(*)
7.5
7.7
31.0Stock based compensation
6.9
5.7
26.4Non-identified costs in respect to special circumstances
2.5
2.0
9.0Non-GAAP operating income$222.0
$165.1
$737.8Percent of revenues
10.1 %
8.7 %
9.3 %
GAAP net income attributable to Elbit Systems'
shareholders$160.8
$107.1
$534.3Adjustments:
Amortization of purchased intangible assets(*)
7.5
7.7
31.0Stock based compensation
6.9
5.7
26.4Non-identified costs in respect to special circumstances
2.5
2.0
9.0Capital gain
—
—
(13.7)Revaluation of investment measured under fair value option
—
—
(4.5)Non-operating foreign exchange (gains) losses
8.6
(4.1)
18.5Tax effect and other tax items, net
0.1
(1.2)
(3.0)Non-GAAP net income attributable to Elbit
Systems' shareholders$186.4
$117.2
$598.0Percent of revenues
8.5 %
6.2 %
7.5 %
GAAP diluted net EPS attributable to Elbit
Systems' shareholders$3.34
$2.35
$11.39Adjustments, net
0.53
0.22
1.36Non-GAAP diluted net EPS attributable to Elbit
Systems' shareholders$3.87
$2.57
$12.75(*) While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies
is reflected in the measures and the acquired assets contribute to revenue generation.Logo: https://mma.prnewswire.com/media/2017806/Elbit_Systems_Logo.jpg View original content:https://www.prnewswire.com/news-releases/elbit-systems-reports-first-quarter-2026-results-302781638.htmlSOURCE Elbit Systems Ltd. Original: ELBIT SYSTEMS REPORTS FIRST QUARTER 2026 RESULTS
US Market News
4 months ago
ELBIT SYSTEMS REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTSMarch 17, 2026 4:54 AM
PR Newswire (US)
Order Backlog at $28.1 billion; Revenues of $7.9 billion; GAAP net income of $534 million; Non-GAAP net income of $598 million; GAAP net EPS of $11.39; Non-GAAP net EPS of $12.75; HAIFA, Israel, March 17, 2026 /PRNewswire/ -- Elbit Systems Ltd. ("Elbit Systems" or the "Company") (NASDAQ: ESLT) (TASE: ESLT), the international high technology defense company, reported today its consolidated results for the fourth quarter and full year ended December 31, 2025.
In this release, the Company is providing US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors a more comprehensive view of the Company's business results and trends. For a description of the Company's non-GAAP definitions see page 15 below, "Non-GAAP financial data". Unless otherwise stated, all financial data presented is US-GAAP financial data.Management Comment:Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented:"The Company is reporting excellent financial results. In 2025, revenues grew by 16%, profit margins expanded significantly, GAAP net EPS increased by 59%, non-GAAP net EPS increased by 46% and backlog grew by $5.5 billion surpassing the $28 billion mark. We also generated record Free Cash Flow of more than $550 million, representing a 100% cash conversion rate.During 2025, Elbit Systems achieved significant milestones, most notably securing a contract from the IMOD for an Airborne High–Power Laser (HPL) combat jet fighter Pod and for a High–Power Laser (HPL) system for helicopters.The Company continues to meet its commitments to an expanding global customer base while strengthening its presence across Europe, the United States, and Asia.We continued to invest heavily in disruptive R&D programs, including AI enhancements across multiple platforms for a total sum of over $500 million. In addition, we are making significant strategic CAPEX investments to address growing global capacity constraints, recognizing that capacity is a critical element of our long–term strategy.Elbit Systems and its employees are playing a key role in providing the IMOD and the IDF capabilities during the Operation Roaring Lion and will continue to serve as a strategic partner to its global customers, maintaining the highest standards and remaining at the forefront of global defense innovation."Fourth quarter 2025 results:Revenues in the fourth quarter of 2025 increased by 11.3% to $2,148.6 million from $1,930.2 million in the fourth quarter of 2024.C4I and Cyber revenues increased by 19%, mainly due to sales of radio systems and command and control systems in Europe and Israel. ISTAR and EW revenues increased by 39%, mainly due to increased sales of Maritime systems, Electro-Optic systems and C-UAS Electronic Warfare. Land revenues increased by 22%, mainly due to ammunition and munition sales in Israel and in Europe. Elbit Systems of America revenues increased by 9%, mainly due to the increase in sales of Night-Vision systems and Maritime systems, partially offset by the decrease in sales of medical devices. Aerospace revenues decreased by 14% in the fourth quarter of 2025, as compared to the fourth quarter of 2024, mainly due to the decrease in training and simulation sales in Europe and significant sales of Precision Guided Munition (PGM) in the fourth quarter of 2024.For distribution of revenues by segments and geographic regions see tables on page 13.GAAP gross profit in the fourth quarter of 2025 was $529.8 million (24.7% of revenues), as compared to $465.2 million (24.1% of revenues) in the fourth quarter of 2024. Non-GAAP(*) gross profit amounted to $536.3 million (25.0% of revenues) in the fourth quarter of 2025, as compared to $472.1 million (24.5% of revenues) in the fourth quarter of 2024. The increase in gross profit in the fourth quarter of 2025 was in line with the increase in the Company's activity and order backlog.Research and development expenses, net were $144.1 million (6.7% of revenues) in the fourth quarter of 2025, as compared to $131.2 million (6.8% of revenues) in the fourth quarter of 2024.Marketing and selling expenses, net were $116.1 million (5.4% of revenues) in the fourth quarter of 2025, as compared to $107.2 million (5.6% of revenues) in the fourth quarter of 2024.General and administrative expenses, net were $77.2 million (3.6% of revenues) in the fourth quarter of 2025, as compared to $85.4 million (4.4% of revenues) in the fourth quarter of 2024.GAAP operating income in the fourth quarter of 2025 was $192.5 million (9.0% of revenues), as compared to $141.4 million (7.3% of revenues) in the fourth quarter of 2024. Non-GAAP(*) operating income was $210.8 million (9.8% of revenues) in the fourth quarter of 2025, as compared to $157.5 million (8.2% of revenues) in the fourth quarter of 2024.Financial expenses, net were $34.0 million in the fourth quarter of 2025, as compared to $45.9 million in the fourth quarter of 2024.* see page 15Other income, net was $24.2 million in the fourth quarter of 2025, as compared to other expenses, net of $6.5 million in the fourth quarter of 2024. Other income, net in the fourth quarter of 2025 included mainly capital gains from the termination of the pension plans, in the amount of approximately $13.7 million, and from the revaluation of investments in affiliated companies held under the fair value method of approximately $11.8 million.Taxes on income in the fourth quarter of 2025 were $21.0 million, as compared to $3.4 million in the fourth quarter of 2024. The lower tax rate in 2024 relates to adjustments made for prior years following tax settlements in some of the Company's subsidiaries in Israel.Equity in net earnings of affiliated companies were $7.0 million in the fourth quarter of 2025, as compared to $4.6 million the fourth quarter of 2024.GAAP net income attributable to the Company's shareholders in the fourth quarter of 2025 was $168.2 million (7.8% of revenues), as compared to $90.0 million (4.7% of revenues) in the fourth quarter of 2024. Non-GAAP(*) net income attributable to the Company's shareholders in the fourth quarter of 2025 was $169.9 million (7.9% of revenues), as compared to $119.3 million (6.2% of revenues) in the fourth quarter of 2024. The increase in net income for the fourth quarter of 2025 was primarily driven by increased revenues.GAAP diluted earnings per share attributable to the Company's shareholders in the fourth quarter of 2025 were $3.52, as compared to $2.00 in the fourth quarter of 2024. Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders were $3.56 for the fourth quarter of 2025, as compared to $2.66 for the fourth quarter of 2024.Full year 2025 results:Revenues for the year ended December 31, 2025 increased by 16.3% to $7,938.6 million from $6,827.9 million in 2024.C4I and Cyber revenues increased by 16% year-over-year mainly due to sales of radio systems and command and control systems in Europe and Israel. ISTAR and EW revenues increased by 16% mainly due to increased sales of Maritime systems, Electro-Optic systems which include Space systems, as well as a variety of Electronic Warfare systems including C-UAS. Land revenues increased by 38% mainly due to the increase in sales of ammunition and munitions in Israel and Europe. Elbit Systems of America revenues increased by 7% mainly due to the increase in sales of night-vision systems and Maritime systems, partially offset by the decrease in medical devices sales. Aerospace revenues increased by 2% in 2025 as compared to 2024, mainly due to increased sales of Precision Guided Munition (PGM) in Asia Pacific and Israel, partially offset by lower training and simulation sales in Europe.For distribution of revenues by segments and by geographic regions see tables on page 13.Cost of revenues for the year ended December 31, 2025 was $6,003.4 million, as compared to $5,186.1 million in the year ended December 31, 2024.* see page 15GAAP gross profit in 2025 was $1,935.3 million (24.4% of revenues), as compared to $1,641.8 million (24.0% of revenues) in 2024. Non-GAAP(*) gross profit for the year ended December 31, 2025 was $1,961.8 million (24.7% of revenues), as compared to $1,671.0 million (24.5% of revenues) in the year ended December 31, 2024.Research and development expenses, net for the year ended December 31, 2025 were $517.1 million (6.5% of revenues), as compared to $466.4 million (6.8% of revenues) in the year ended December 31, 2024. The increase in research and development expenses, net during 2025 was mainly due to significant investments expanding the Company's portfolio of ammunition and munitions, as well as increased investment in Night Vision solutions.Marketing and selling expenses, net for the year ended December 31, 2025 were $399.4 million (5.0% of revenues), as compared to $375.4 million (5.5% of revenues) in the year ended December 31, 2024.General and administrative expenses, net for the year ended December 31, 2025 were $347.3 million (4.4% of revenues), as compared to $311.0 million (4.6% of revenues) in the year ended December 31, 2024.GAAP operating income in 2025 was $671.4 million (8.5% of revenues), as compared to $489.1 million (7.2% of revenues) in 2024. Non-GAAP(*) operating income for the year ended December 31, 2025 was $737.8 million (9.3% of revenues), as compared to $550.4 million (8.1% of revenues) in the year ended December 31, 2024.C4I and Cyber operating income in 2025 was $55.9 million (6.0% of C4I and Cyber segment revenues), compared to $62.0 million (7.8% of segment revenues in 2024). The $6.1 million decrease in operating income was mainly due to a project mix.ISTAR and EW operating income in 2025 was $129.1 million (8.5% of ISTAR and EW segment revenues), compared to $96.1 million (7.3% of segment revenues in 2024). The $33.0 million increase in operating income was mainly due to increased revenues and positive project mix.Land operating income in 2025 was $263.7 million (11.4% of Land segment revenues), compared to $150.7 million (9.0% of segment revenues in 2024). The $113.0 million increase in operating income was mainly due to increased revenues in munition and ammunition in Israel and Europe.ESA operating income in 2025 was $122.8 million (7.2% of ESA segment revenues), compared to operating revenues of $56.2 million (3.5% of segment revenues in 2024). The $66.6 million increase in operating income was mainly due to new contracts signed for Night-Vision and Maritime systems, as well as positive program mix.Aerospace operating income in 2025 was $151.9 million (7.4% of Aerospace segment revenues), compared to $149.1 million (7.3% of segment revenues in 2024).For distribution of operating income by segments see tables on page 14.Financial expenses, net for the year ended December 31, 2025 were $138.6 million, as compared to $151.1 million in the year ended December 31, 2024. The decrease in financial expenses, net in 2025, was mainly due to lower interest expenses and lower level of debt.* see page 15Other income, net in 2025 was $29.1 million, as compared to $3.8 million in 2024. Other income, net in 2025 included mainly capital gains from the termination of the pension plans in the amount of approximately $13.7 millions, and revaluation of investments in affiliated companies held under the fair value method of approximately $11.8 millions.Taxes on income for the year ended December 31, 2025 were $55.5 million (effective tax rate of 9.9%), as compared to $39.1 million (effective tax rate of 11.4%) in the year ended December 31, 2024. The decrease in the tax rate in 2025 was as a result of the valuation allowance releases and adjustments to deferred taxes related to prior years following tax settlements in some of the Company's subsidiaries in Israel.Equity in net earnings of affiliated companies for the year ended December 31, 2025 were $29.2 million, as compared to $19.2 million in the year ended December 31, 2024.GAAP net income attributable to the Company's shareholders in the year ended December 31, 2025 was $534.3 million (6.7% of revenues), as compared to $321.1 million (4.7% of revenues) in the year ended December 31, 2024. Non-GAAP(*) net income attributable to the Company's shareholders for the year ended December 31, 2025 was $598.0 million (7.5% of revenues), as compared to $391.5 million (5.7% of revenues) in the year ended December 31, 2024. The increase in net income in 2025 was mainly due to the increase in revenues.GAAP diluted net earnings per share attributable to the Company's shareholders in the year ended December 31, 2025 were $11.39, as compared to $7.18 in the year ended December 31, 2024. Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders for the year ended December 31, 2025 were $12.75, as compared to $8.76 for the year ended December 31, 2024.The Company's order backlog for the year ended December 31, 2025 totaled $28.1 billion, as compared to $22.6 billion as of December 31, 2024. Approximately 72% of the current backlog is attributable to orders from outside of Israel. Approximately 54% of the current backlog is scheduled to be performed during 2026 and 2027.Net cash provided by operating activities in the year ended December 31, 2025 was $778.4 million, as compared to $534.6 million in the year ended December 31, 2024. Operating cash flows in 2025 were affected mainly by the increase in contract liabilities offset by the increase in inventories and trade receivables.* see page 15Impact of the recent conflicts in the Middle East on the Company.The war which began on October 7, 2023, continued throughout most of 2025, with ceasefires agreed to between Israel and Lebanon involving the conflict with Hezbollah in November 2024, and, after an intensified period of conflict that lasted 12 days, a ceasefire was declared with Iran in June 2025. A ceasefire with Hamas was agreed to in January 2025, and a subsequent ceasefire with Hamas was agreed to in October 2025. On February 28, 2026, Israel and the U.S. launched a joint attack on Iran named "Operation Roaring Lion" by Israel and "Operation Epic Fury" by the U.S., targeting key Iranian officials and targets. Iran launched attacks against Israel and at U.S. military bases across the region, including strikes in Bahrain, Qatar, Saudi Arabia, Kuwait and Jordan. On March 2, 2026 Hezbollah launched an attack on Israel. The current situation remains uncertain.Since the commencement of the war and the escalation of conflicts in the Middle East, Elbit Systems has experienced a continued material increase in the demand for its products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels prior to the war. Such increased demand may continue and could generate material additional orders to the Company.As a result of the war and the other conflicts in the Middle East, some of Elbit Systems' operations have experienced disruptions due to supply chain and operational constraints, including among others increases in transportation costs and delays due to factors such as the Houthi movement attacks on shipping in the Red Sea, material and component shortages and elevated prices, employee call-ups for reserve duty, limitations imposed by some countries on engagement with Israel and attacks on some of Elbit Systems' global facilities by anti-Israeli organizations.Elbit Systems has taken various steps to protect its employees worldwide, to support increased production, to increase raw material and component inventories, to mitigate supply chain disruptions and to maintain business continuity. Following the ceasefire agreements described above, these operational effects on the Company have been reduced, however, in light of the recent escalation of conflicts involving Iran and Hezbollah, such effects on the Company's performance could increase again, depending on future developments that are difficult to predict at this time, including the duration and scope of these conflicts. Recent Events:On November 19, 2025, the Company announced that it has been awarded contracts from the Israel Ministry of Defense in an aggregate amount of approximately $210 million for the upgrade of Merkava Main Battle Tanks (MBTs). The contracts will be performed over a period of six years.On December 16, 2025, the Company announced that it was notified that the Hellenic Parliament and KYSEA (Government Council for National Security) have approved a budget for the purchase of the Company's PULS rocket artillery system for the Hellenic Armed Forces. Considering the above, Elbit Systems anticipates receiving a contract in an amount that is material to the Company. The anticipated contract award is contingent, among others, on completion of commercial negotiations with the Hellenic Ministry of National Defense.On January 12, 2026, the Company announced that it has been awarded contracts totaling approximately $275 million, for the supply of advanced airborne self-protection electronic warfare (EW) suite, including its Direct Infra-Red Counter-Measure (DIRCM) system, to a country in the Asia-Pacific region. The contracts will be performed over a period of 5 years.On January 26, 2026, the Company announced, following the U.S. Government's publication from September 29, 2025 of an award to General Dynamics Ordnance and Tactical Systems (GD-OTS) of an order for the Bradley Fighting vehicle Active Protection System (APS), that Elbit Systems has been awarded by GD-OTS a $228 million contract to supply the Company's Iron Fist APS. The contract will be executed over a period of three years.On February 17, 2026, the Company announced that it was awarded several contracts with a total value of approximately $435 million from an international customer. Under these contracts, the Company will supply a range of advanced systems, including land systems, and will also carry out a development program for an innovative defense solution. The contracts will be performed over a period of six years.On February 18, 2026, the Company announced that it has been awarded contracts in an aggregate value of approximately $277 million by an international customer to supply 30 mm turrets and munitions. The contracts will be performed over a period of three years.Dividend:The Board of Directors declared a dividend of $1.00 per share. The dividend's record date is April 13, 2026. The dividend will be paid on April 27, 2026, after deduction of taxes at the source, at the rate of 16.8%. Conference Call:The Company will be hosting a conference call today, Tuesday, March 17, 2026, at 10:00 a.m. Eastern Time. On the call, management will review and discuss the results and will be available to answer questions.To participate, please call one of the teleconferencing numbers that follow. If you are unable to connect using the toll-free numbers, please try the international dial-in number.US Dial-in Number: 1-866-744-5399
Canada Dial-in Number: 1-866-485-2399
Israel Dial-in Number: 03-918- 0644
International Dial-in Number: 972-3- 918- 0644
at 10:00am Eastern Time; 7:00am Pacific Time; 4:00pm Israel TimeThe conference call will also be broadcast live on Elbit Systems' website at https://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends.Alternatively, for two days following the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are: 1-888-782-4291 (US and Canada) or +972-3-925-5900 (Israel and International).Investor conferenceStarting at 10:00 am Israel time (4:00 am Eastern Time) Tuesday, March 17, 2026, Elbit Systems will host an investor conference in Israel. The event will be streamed live in Hebrew. A recording of the event will be available shortly after the event concludes. The live webcast and recording will be available in the Investor Relations section of Elbit Systems' website at http://www.elbitsystems.com. Investors that wish to ask questions related to topics discussed at the investor conference are welcome to present their questions during the Q&A part of the financial results conference call.Annual ReportThe Company's Annual Report on Form 20-F (including its financial statements for the fiscal year ended December 31, 2025) will be filed on March 17, 2026.About Elbit SystemsElbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.Driven by its agile, collaborative culture, and leveraging Israel's technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.Elbit Systems employs over 20,000 people in dozens of countries across five continents. The Company reported $7,938.6 million in revenues for the year ended December 31, 2025 and an order backlog of $28.1 billion as of such date.For additional information, visit: https://elbitsystems.com/, follow us on X or visit our official Facebook, YouTube and LinkedIn channels.Attachments:Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flows
Consolidated revenue distribution by geographical regions and by segments
Consolidated operating income by segmentsCompany Contact:Dr. Yaacov (Kobi) Kagan, EVP & Chief Financial Officer
Tel: +972-77-2946663 kobi.kagan@elbitsystems.com Daniella Finn, VP, Investor Relations
Tel: +972-77-2948984 daniella.finn@elbitsystems.com Dalia Bodinger, VP, Communications & Brand
Tel: +972-77-2947602 dalia.bodinger@elbitsystems.comThis press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward–looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. Therefore, actual future results, performance and trends may differ materially from these forward–looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others, including the duration and scope of the war in Israel, and the potential impact on our operations; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward–looking statements speak only as of the date of this release.Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements.Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this Press Release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies. All other brand, product, service and process names appearing are the trademarks of their respective holders. Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein.(FINANCIAL TABLES TO FOLLOW)ELBIT SYSTEMS LTD.CONSOLIDATED BALANCE SHEETS(In thousands of US Dollar)
As of
December 31, 2025
As of
December 31, 2024Assets
Cash and cash equivalents$ 635,141
$ 265,351Short-term bank deposits 180,604
1,330Trade and unbilled receivables and contract assets, net3,332,249
2,942,886Other receivables and prepaid expenses457,385
371,918Inventories, net 3,129,756
2,773,696Total current assets7,735,135
6,355,181
Investments in affiliated and other companies126,900
126,007Long-term trade and unbilled receivables and contract assets719,078
516,299Long-term bank deposits and other receivables51,601
67,510Deferred income taxes, net86,679
34,064Severance pay fund222,555
223,167Total1,206,813
967,047
Operating lease right of use assets515,620
527,075Property, plant and equipment, net1,382,120
1,276,948Goodwill and other intangible assets, net1,821,830
1,845,345Total assets$ 12,661,518
$ 10,971,596
Liabilities and Equity
Short-term credit and loans$ 50,532
$ 450,856Current maturities of long-term loans and Series B, C and D Notes83,452
74,561Operating lease liabilities98,464
84,912Trade payables1,511,671
1,343,816Other payables and accrued expenses1,549,139
1,207,717Contract liabilities2,683,180
2,149,306Total5,976,438
5,311,168
Long-term loans, net of current maturities18,000
27,395Series B, C and D Notes, net of current maturities237,625
278,529Employee benefit liabilities487,760
454,334Deferred income taxes and tax liabilities, net137,662
73,916Contract liabilities934,256
816,796Operating lease liabilities476,737
454,057Other long-term liabilities263,067
274,421Total2,555,107
2,379,448
Elbit Systems Ltd.'s equity4,129,598
3,277,540Non-controlling interests375
3,440Total equity4,129,973
3,280,980Total liabilities and equity$ 12,661,518
$ 10,971,596 ELBIT SYSTEMS LTD.CONSOLIDATED STATEMENTS OF INCOME(In thousands of US Dollars, except per share data)
Year ended
December 31, 2025
Year ended
December 31,
2024
Three months
ended
December 31,
2025
Three months
ended
December 31,
2024Revenues$ 7,938,627
$ 6,827,871
$ 2,148,559
$ 1,930,216Cost of revenues6,003,374
5,186,051
1,618,765
1,465,015Gross profit1,935,253
1,641,820
529,794
465,201Operating expenses:
Research and development, net517,142
466,402
144,095
131,192Marketing and selling, net399,437
375,358
116,071
107,214General and administrative, net347,250
311,007
77,163
85,399Total operating expenses1,263,829
1,152,767
337,329
323,805Operating income 671,424
489,053
192,465
141,396
Financial expenses, net(138,618)
(151,125)
(34,031)
(45,906)Other income (expense), net29,109
3,818
24,152
(6,452)Income before income taxes561,915
341,746
182,586
89,038Taxes on income(55,539)
(39,058)
(21,012)
(3,368)Income after taxes on income506,376
302,688
161,574
85,670
Equity in net earnings of affiliated companies29,243
19,176
6,978
4,551
Net income$ 535,619
$ 321,864
$ 168,552
$ 90,221
Less: net income attributable to non-controlling interests(1,280)
(726)
(391)
(228)Net income attributable to Elbit Systems Ltd.'s shareholders$ 534,339
$ 321,138
$ 168,161
$ 89,993
Earnings per share attributable to Elbit Systems Ltd.'s shareholders:
Basic net earnings per share$ 11.69
$ 7.22
$ 3.63
$ 2.02Diluted net earnings per share$ 11.39
$ 7.18
$ 3.52
$ 2.00
Weighted average number of shares used in computation of:
Basic earnings per share45,710
44,480
46,386
44,505Diluted earnings per share46,918
44,709
47,759
44,937 ELBIT SYSTEMS LTD.CONSOLIDATED STATEMENTS OF CASH FLOW(In thousands of US Dollars)
Year ended
December 31,
2025
Year ended
December 31,
2024CASH FLOWS FROM OPERATING ACTIVITIES
Net income$ 535,619
$ 321,864Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization171,434
158,391Stock-based compensation26,391
15,760Amortization of Series B, C and D related issuance costs, net394
493Deferred income taxes and reserve, net(14,687)
1,649Gain on sale of property, plant and equipment2,893
(596)Gain (loss) from sale of investments and revaluation of investments held under fair value method(4,518)
18,136Equity in net earnings of affiliated companies, net of dividend received (*)(10,190)
(8,213)Changes in operating assets and liabilities, net of amounts acquired:
Increase in short and long-term trade receivables and contract assets and prepaid expenses(659,951)
(473,926)Increase in inventories, net(357,926)
(480,309)Increase in trade payables, other payables and accrued expenses463,913
65,663Severance, pension and termination indemnities, net(26,328)
(40,159)Increase in contract liabilities651,334
955,857Net cash provided by operating activities778,378
534,610
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and other assets, net of investment grants and evacuation grants(225,568)
(215,051)Proceeds from sale of a subsidiary400
7,376Investments in affiliated companies and other companies, net(2,288)
(3,603)Proceeds from sale of property, plant and equipment1,133
4,107Proceeds from sale of investments14,600
18,594Proceeds from sale of (investment in) long-term deposits, net(31)
(180)Proceeds from (investment in) short-term deposits, net(178,962)
9,923Net cash provided used in investing activities(390,716)
(178,834)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares and exercise of options573,064
26Issuance (repayment) of commercial paper, net(301,591)
36,380Repayment of long-term loans(11,423)
(11,320)Repayment of Series B, C and D Notes(67,496)
(61,862)Dividends paid(111,693)
(88,958)Change in short-term bank credit and loans, net(98,733)
(162,120)Net cash used in financing activities(17,872)
(287,854)
Net increase in cash and cash equivalents369,790
67,922Cash and cash equivalents at the beginning of the period$ 265,351
$ 197,429Cash and cash equivalents at the end of the period$ 635,141
$ 265,351
(*) Dividend received from affiliated companies$ 19,053
$ 10,963 ELBIT SYSTEMS LTD.DISTRIBUTION OF REVENUES(In millions of US Dollars)
Consolidated revenues by geographical regions:
Year ended
December 31,
2025
%
Year ended
December 31,
2024
%
Three months
ended
December 31,
2025
%
Three months
ended
December 31,
2024
%Israel$ 2,556.4
32.2
$ 1,988.0
29.1
$ 635.2
29.6
$ 592.9
30.7North America1,659.3
20.9
1,520.3
22.3
455.0
21.2
438.0
22.7Europe2,139.5
27.0
1,820.9
26.7
583.0
27.1
533.7
27.6Asia-Pacific1,243.7
15.7
1,132.7
16.6
372.4
17.3
274.3
14.2Latin America99.0
1.2
150.0
2.2
27.6
1.3
38.2
2.0Other countries240.7
3.0
216.0
3.1
75.4
3.5
53.1
2.8Total revenues$ 7,938.6
100.0
$ 6,827.9
100.0
$ 2,148.6
100.0
$ 1,930.2
100.0 Consolidated revenues by segments:
Year ended
December 31,
2025
Year ended
December 31,
2024
Three months ended
December 31,
2025
Three months ended
December 31,
2024Aerospace
External customers$ 1,820.9
$ 1,780.5
$ 473.0
$ 564.3Intersegment revenue246.1
255.8
75.2
76.7Total2,067.0
2,036.3
548.2
641.0C4I and Cyber
External customers$ 866.2
$ 750.6
$ 223.3
$ 192.2Intersegment revenue64.7
49.2
17.5
9.5Total930.9
799.8
240.8
201.7ISTAR and EW
External customers$ 1,323.5
$ 1,118.6
$ 416.0
$ 285.8Intersegment revenue202.3
199.4
40.6
43.4Total1,525.8
1,318.0
456.6
329.2Land
External customers$ 2,250.3
$ 1,605.1
$ 570.1
$ 461.1Intersegment revenue68.4
74.3
11.0
13.7Total2,318.7
1,679.4
581.1
474.8ESA
External customers$ 1,677.7
$ 1,573.1
$ 466.2
$ 426.8Intersegment revenue16.4
12.6
6.9
5.3Total1,694.1
1,585.7
473.1
432.1Revenues
Total revenues (external customers and intersegment) for reportable segments8,536.5
7,419.2
2,299.8
2,078.8Less - intersegment revenue(597.9)
(591.3)
(151.2)
(148.6)Total revenues$ 7,938.6
$ 6,827.9
$ 2,148.6
$ 1,930.2 ELBIT SYSTEMS LTD.OPERATING INCOME BY SEGMENTS(In millions of US Dollars)Operating income by segments:
Year ended
December 31, 2025
Year ended
December 31, 2024Aerospace$ 151.9
$ 149.1C4I and Cyber55.9
62.0ISTAR and EW129.1
96.1Land 263.7
150.7ESA 122.8
56.2Segment operating income723.4
514.1Unallocated corporate expense, net(52.0)
(25.0)Operating income $ 671.4
$ 489.1 * Non-GAAP financial data:The following non-GAAP financial data, including adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted earnings per share, is presented to enable investors to have additional information on our business performance as well as a further basis for periodical comparisons and trends relating to our financial results. We believe such data provides useful information to investors and analysts by facilitating more meaningful comparisons of our financial results over time. The non-GAAP adjustments exclude amortization expenses of intangible assets related to acquisitions that occurred mainly in prior periods, capital gains related primarily to the sale of investments, restructuring activities, non-indemnified costs in respect to special circumstances, non-cash stock based compensation expenses, revaluations of investments in affiliated companies, non-operating foreign exchange gains or losses, one-time tax expenses, and the effect of tax on each of these items. Once the special circumstances in Israel ends, the company will discontinue the reconciliation of non–indemnified costs. We present these non-GAAP financial measures because management believes they supplement and/or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past, and future periods.Specifically, management uses adjusted gross profit, adjusted operating income, and adjusted net income attributable to the Company's shareholders to measure the ongoing gross profit, operating profit and net income performance of the Company because the measure adjusts for more significant non-recurring items, amortization expenses of intangible assets relating to prior acquisitions, and non-cash expense which can fluctuate year to year.We believe adjusted gross profit, adjusted operating income, and adjusted net income attributable to the Company's shareholders are useful to existing shareholders, potential shareholders and other users of our financial information because they provide measures of the Company's ongoing performance that enable these users to perform trend analysis using comparable data.Management uses adjusted diluted earnings per share to evaluate further adjusted net income attributable to the Company's shareholders while considering changes in the number of diluted shares over comparable periods.We believe adjusted diluted earnings per share is useful to existing shareholders, potential shareholders and other users of our financial information because it also enables these users to evaluate adjusted net income attributable to Company's shareholders on a per-share basis.The non-GAAP measures used by the Company are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.Investors are cautioned that, unlike financial measures prepared in accordance with GAAP, non-GAAP measures may not be comparable with the calculation of similar measures for other companies. They should consider non-GAAP financial measures in addition to, and not as replacements for or superior to, measures of financial performance prepared in accordance with GAAP. Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data:(US Dollars in millions, except for per share amounts)
Three months
ended
December 31,
2025
Three months
ended
December 31,
2024
Year ended
December 31,
2025
Year ended
December 31,
2024GAAP gross profit$ 529.8
$ 465.2
$ 1,935.3
$ 1,641.8Adjustments:
Amortization of purchased intangible assets(*) 4.1
4.1
16.2
18.9Stock-based compensation1.3
0.9
4.0
2.4Non-indemnified costs in respect to special circumstances1.1
1.9
6.3
7.9Non-GAAP gross profit$ 536.3
$ 472.1
$ 1,961.8
$ 1,671.0Percent of revenues25.0 %
24.5 %
24.7 %
24.5 %
GAAP operating income$ 192.5
$ 141.4
$ 671.4
$ 489.1Adjustments:
Amortization of purchased intangible assets(*) 7.8
7.7
31.0
34.2Stock-based compensation8.9
5.7
26.4
15.8Non-indemnified costs in respect to special circumstances1.6
2.7
9.0
11.3Non-GAAP operating income$ 210.8
$ 157.5
$ 737.8
$ 550.4Percent of revenues9.8 %
8.2 %
9.3 %
8.1 %
GAAP net income attributable to Elbit Systems' shareholders$ 168.2
$ 90.0
$ 534.3
$ 321.1Adjustments:
Amortization of purchased intangible assets(*) 7.8
7.7
31.0
34.2Stock-based compensation8.9
5.7
26.4
15.8Capital gain(13.7)
—
(13.7)
(2.0)Revaluation of investments measured under fair value method(11.8)
12.0
(4.5)
19.4Non-operating foreign exchange (gains) losses8.1
3.6
18.5
(0.6)Non-indemnified costs in respect to special circumstances1.6
2.7
9.0
11.3Tax effect and other tax items, net0.8
(2.4)
(3.0)
(7.7)Non-GAAP net income attributable to Elbit Systems' shareholders$ 169.9
$ 119.3
$ 598.0
$ 391.5Percent of revenues7.9 %
6.2 %
7.5 %
5.7 %
GAAP diluted net EPS$ 3.52
$ 2.00
$ 11.39
$ 7.18Adjustments, net0.04
0.66
1.36
1.58Non-GAAP diluted net EPS$ 3.56
$ 2.66
$ 12.75
$ 8.76
(*) While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies
is reflected in the measures and the acquired assets contribute to revenue generation.
Logo: https://mma.prnewswire.com/media/2017806/Elbit_Systems_Logo.jpg
View original content:https://www.prnewswire.com/news-releases/elbit-systems-reports-fourth-quarter-and-full-year-2025-results-302715788.htmlSOURCE Elbit Systems Ltd.
Original: ELBIT SYSTEMS REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
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