Investors might want to bet on Elbit Systems (ESLT) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this maker of defense electronics, should get reflected in its stock price. After all, empirical research shows a strong corre ...

Core Viewpoint - Elbit Systems Ltd. has announced a public offering of 1,365,450 ordinary shares priced at $375 per share, with gross proceeds expected to be approximately $512 million before deductions [1][2]. Group 1: Offering Details - The offering includes a 30-day option for underwriters to purchase an additional 204,817 shares at the public offering price [1]. - The offering is expected to close on May 23, 2025, subject to customary closing conditions [1]. - The shares will be listed for trading on the Nasdaq Global Select Market [1]. Group 2: Financial Information - The gross proceeds from the offering are anticipated to be around $512 million, assuming no exercise of the underwriters' option [2]. - Elbit Systems plans to use the net proceeds for general corporate purposes [2]. Group 3: Underwriters - BofA Securities, J.P. Morgan, Jefferies, and Morgan Stanley are acting as joint book-running managers for the offering [3]. - Barak Capital Underwriting is serving as a placement agent for the underwriters in Israel [3]. Group 4: Company Overview - Elbit Systems is a leading global defense technology company, employing approximately 20,000 people across five continents [6][7]. - The company reported revenues of $1.9 billion for the three months ended March 31, 2025, with an order backlog of $23.1 billion as of that date [7].

Core Viewpoint - Elbit Systems Ltd. announced a public offering of 1,365,450 ordinary shares, all of which will be sold by the company, with a potential additional 15% option for underwriters [1][2][3] Group 1: Offering Details - The offering is made under an effective shelf registration statement on Form F-3 filed with the SEC on May 21, 2025, which became effective immediately [3] - The net proceeds from the offering will be used for general corporate purposes [1] - The ordinary shares are expected to be listed for trading on the Nasdaq Global Select Market [1] Group 2: Underwriters - BofA Securities, J.P. Morgan, Jefferies, and Morgan Stanley are engaged as joint book-running managers for the offering [2] Group 3: Company Overview - Elbit Systems is a leading global defense technology company, employing approximately 20,000 people across five continents [5][6] - The company reported revenues of $1.9 billion for the three months ended March 31, 2025, and has an order backlog of $23.1 billion as of that date [6]

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].

Core Points - Elbit Systems Ltd. will publish its First Quarter 2025 financial results on May 20, 2025 [1] - A conference call to discuss these results will be held on the same day at 9:00am ET [2] - The company reported $6.8 billion in revenues and an order backlog of $22.6 billion as of December 31, 2024 [5] Company Overview - Elbit Systems is a leading global defense technology company, providing advanced solutions for security [4] - The company employs approximately 20,000 people across five continents [5] - Elbit Systems develops, manufactures, integrates, and sustains next-generation solutions across multiple domains [4]

Core Insights - Elbit Systems experienced a significant share price increase of nearly 12% over the trading week following a strong earnings release [1] Financial Performance - For the fourth quarter and full year, Elbit reported revenues exceeding $1.93 billion, up from $1.63 billion in the same period of 2023 [2] - The company's non-GAAP adjusted net income surged 71% year over year to over $119 million, translating to $2.66 per share [2][3] - Both revenue and profit figures surpassed consensus analyst estimates, which were $1.75 billion in revenue and an adjusted profit of $1.85 per share [3] Operational Highlights - Elbit noted that this quarter marked its fourth consecutive quarter of double-digit revenue growth [3] - CEO Butzi Machlis highlighted the company's success in securing significant contracts globally and emphasized the importance of investments in R&D and production infrastructure [4] Order Backlog - Elbit's order backlog at the end of December stood at $22.6 billion, significantly higher than the $17.8 billion reported at the end of 2023 [5] - Approximately 57% of the backlog is scheduled for shipment within this year and the next [5] Industry Context - The increasing reliance on drone technology in global conflicts positions Elbit favorably for future growth [6]

Exhibit 1 Company Contact: Dr. Yaacov (Kobi) Kagan, ExecutiveVP - CFO Tel: +972-77-2946663 kobi.kagan@elbitsystems.com Haifa, Israel, March 20, 2025 – Elbit Systems Ltd. (NASDAQ: ESLT and TASE: ESLT) ("Elbit Systems" or the "Company") announced today that on March 20, 2025, the Company filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 (the "2024 Annual Report") with the U.S. Securities and Exchange Commission, the Israel Securities Authority and the Tel Aviv Stock Exchange. Th ...

Company Overview - Elbit Systems is a leading global defense technology company that develops, manufactures, integrates, and sustains advanced solutions across multiple domains [3] - The company employs approximately 20,000 people in dozens of countries across five continents [4] Financial Performance - For the fiscal year ended December 31, 2024, Elbit Systems reported revenues of $6.8 billion [4] - The company has an order backlog of $22.6 billion as of the same date [4] Reporting and Accessibility - On March 20, 2025, Elbit Systems filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission, the Israel Securities Authority, and the Tel Aviv Stock Exchange [1] - The 2024 Annual Report is available for viewing or downloading on the company's website, and hard copies can be requested by shareholders free of charge [2]

Currency and Financial Risks - The company faces significant currency exchange risks due to substantial revenues generated in currencies other than the U.S. dollar, primarily New Israeli Shekels (NIS), Great Britain Pounds (GBP), and Euros, which could adversely affect costs and financial performance[57]. - Increased levels of inflation and interest rates have raised borrowing costs and operational expenses, with central banks tightening monetary policies since 2021, impacting the company's financial condition[58]. - Revenue and profit margins may fluctuate significantly due to changes in pricing, sales volume, and project mix, complicating financial forecasting[61]. - The effective tax rate may fluctuate due to changes in revenue mix, tax laws, and audits, potentially affecting income tax expenses[69]. - Changes in tax laws, including the OECD's BEPS project and the U.S. Inflation Reduction Act, could materially affect the company's financial position and tax obligations[70]. Contractual and Operational Risks - The company is exposed to cost overruns in fixed-price contracts, which could lead to reduced profits or losses due to unexpected costs, particularly in design, engineering, and material procurement[59]. - Pre-contract costs incurred for anticipated contracts may not be recoverable if contracts are not awarded, posing a risk to financial performance[60]. - The backlog of projects is subject to unexpected adjustments, delays, and cancellations, which can adversely affect future revenue and cash flow[63]. - The company faces risks related to debt obligations, including compliance with covenants that may limit operational flexibility and financing opportunities[64]. - Internal control systems may have inherent limitations, potentially leading to financial reporting errors or fraud, which could adversely impact the company's reputation and financial condition[65]. Supply Chain and Production Challenges - Supply chain disruptions have occurred due to temporary evacuations of employees, significant call-ups for military reserve duty, and increased transportation costs[92]. - The ongoing conflict has led to delays in receiving materials and components, impacting the company's ability to meet customer obligations[92]. - The company has relocated certain production lines and increased monitoring of global supply chains to address delays and shortages caused by the war[93]. - As of March 6, 2025, most relocated production lines have returned to their original locations, and the percentage of employees called up for reserve duty has decreased but remains above historical levels[93]. Regulatory and Compliance Risks - The company is subject to various legal and regulatory requirements, including compliance with government procurement and anti-bribery regulations, which increase performance and compliance costs[77]. - The company faces risks related to obtaining governmental approvals for international sales and procurement, which have become more stringent since the outbreak of the war[78]. - The company may face increased costs and liabilities due to environmental protection, health, and safety regulations, which have become more stringent[80]. Geopolitical and Economic Factors - The geopolitical environment, including military activities and conflicts, could materially and adversely affect the company's financial condition and results of operations[89]. - The Israeli government may reduce its expenditures for defense items or change its defense priorities, which could adversely affect earnings[97]. - Between 2019 and 2023, Israel underwent five elections, leading to delays in adopting the defense budget, negatively impacting operations[99]. - In October 2024, S&P Global downgraded Israel's long-term credit rating from A+ to A with a negative outlook, reflecting heightened security risk[100]. - Changes in the Israeli economy, including inflation and budgetary constraints, could adversely impact business operations and financial results[100]. Workforce and Employment Issues - The company has incurred costs related to employees on reserve duty that are not fully indemnified by the government, potentially affecting financial condition and cash flow[95]. - As of March 6, 2025, approximately 4% of the workforce in Israel was called for military reserve duty, down from 5% as of December 31, 2024[95]. Strategic and Market Risks - The Israeli Defense Entities Law may impose restrictions on acquisitions of controlling interests in defense companies, affecting potential mergers and acquisitions[102]. - The company may face difficulties in international trade due to political relations and boycotts against Israeli firms, which have increased since the "Swords of Iron" war[96]. - Israeli government programs and tax benefits may be reduced or eliminated in the future, impacting funding for technology and product development[101]. Miscellaneous - The war has resulted in physical damage to facilities and may adversely affect business activities with third parties[94]. - The company is exempt from certain SEC requirements as a foreign private issuer, which may result in less information being available to shareholders[106].

Financial Data and Key Metrics Changes - Fourth quarter revenues increased by 19% to $1,930 million compared to $1,626 million in Q4 2023 [8] - Full-year 2024 revenues increased by 14% to $6,828 million compared to $5,975 million in 2023 [8] - Non-GAAP diluted EPS was $2.66 in Q4 2024, compared to $1.56 in Q4 2023 [17] - GAAP diluted EPS was $2 for Q4 2024 compared to $0.67 in Q4 2023 [17] - Free cash flow for 2024 was $320 million, significantly better than previous years [20] Business Line Data and Key Metrics Changes - Aerospace revenues increased by 27% in Q4 2024, mainly due to increased UAS sales in Israel and Europe [9] - C4I and Cyber revenues increased by 7% year-over-year, driven by radio systems and command and control system sales [9] - ISTAR and EW revenues increased by 8%, mainly due to Electronic Warfare and Electro-Optic system sales [9] - Land revenue increased by 29%, attributed to increased ammunition and munition sales [9] - Elbit Systems of America revenues increased by 6%, mainly due to night-vision systems and medical instrumentation sales [9] Market Data and Key Metrics Changes - Europe contributed 27% of revenues, North America 22%, Asia Pacific 17%, and Israel 29% for the full year 2024 [11] - The backlog of orders as of December 31, 2024, was $22.6 billion, approximately $4.8 billion higher than the backlog at the end of 2023 [18] - Approximately 65% of the current backlog was generated from outside of Israel [19] Company Strategy and Development Direction - The company continues to invest in developing agile solutions for the modern battlefield, with a focus on high-power laser solutions and autonomous systems [30] - Elbit is expanding its production capacity to meet growing demand, with new facilities in the U.K. and Germany [51] - The company is enhancing operational efficiency through a new ERP system and integrating AI into various processes [29][30] - Elbit's diverse geographic revenue base and product portfolio help reduce revenue volatility and support long-term sustainability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth due to elevated defense budgets globally, especially in Europe [25][54] - The company sees significant potential for growth in export activities, with a record year for exports outside of Israel [44] - Management highlighted the resilience of the company, supported by a global workforce and numerous subsidiaries [41][42] Other Important Information - The effective tax rate in 2024 was 11.4%, compared to 10.1% in 2023 [16] - The Board of Directors declared a dividend of $0.60 per share [20] Q&A Session Summary Question: Inquiry about free cash flow and contract liability inflow - Management confirmed operational cash flow of $535 million, significantly better than previous years, driven by contract liabilities and inventory expansion [35] Question: Clarification on export revenues - Management confirmed that export revenue was $4.8 billion, with a record high for Elbit, and expressed optimism for future growth [40][46] Question: Operational capacity in southern Israel - Management stated that they are expanding production capacity and have inaugurated new facilities in the U.K. and Germany [51] Question: Expectations for growth across regions - Management anticipates strong growth in Europe due to increased defense budgets and continued growth in Israel and Asia Pacific [54]