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

Company Overview - Elbit Systems Ltd. is a leading global defense technology company, providing advanced solutions for a secure and safer world [6] - The company employs over 20,000 people across five continents and reported approximately $1.7 billion in revenues as of September 30, 2024, with an order backlog of approximately $22.1 billion [7] Upcoming Events - Elbit Systems will publish its fourth quarter and full year 2024 financial results on March 18, 2025 [1] - An investor conference will be held on March 18, 2025, at 10:00 am Israel time (4:00 am Eastern Time), which will be streamed live in Hebrew [4] - A conference call to discuss the financial results will take place on the same day at 10:00 am Eastern Time, with management available for questions [2][5] Participation Details - Investors can participate in the conference call by dialing specific numbers for the US, Canada, Israel, and international participants [2] - A replay of the conference call will be available for two days following the event [3]

Group 1 - The article emphasizes the importance of taking profits in investments and not being overly greedy, particularly in relation to Elbit Systems [1] - The focus is on Israel-based stocks that are part of various ETFs, including iShares MSCI Israel ETF (EIS), VanEck Israel ETF (ISRA), Amplify Bluestar Israel Technology ETF (ITEQ), and ARK Israel Innovative Technology ETF (IZRL) [1] - The author has a background in equity research and has previously worked as an editor for Bloomberg and other financial platforms, indicating a strong expertise in the field [1]

Financial Data and Key Metrics Changes - Third quarter revenue increased by 14% to $1.718 billion compared to $1.502 billion in the third quarter of 2023 [7] - Non-GAAP diluted EPS was $2.21 in the third quarter of 2024 compared to $1.71 in the third quarter of 2023, marking a second consecutive quarter of double-digit EPS growth [12] - GAAP diluted EPS was $1.77 for the third quarter of 2024 compared to $1.36 in the third quarter of 2023 [12] - Non-GAAP gross margin for the third quarter was 24.4% compared to 24.9% in the same period last year [10] Business Line Data and Key Metrics Changes - Aerospace revenues increased by 7% year over year, mainly due to increased UAS sales in Israel [7] - C4I and Cyber revenues increased by 13% year over year, driven by radio system and command and control system sales [7] - Land revenues increased by 24% due to increased ammunition and munition sales in Israel [8] - Elbit Systems of America revenues increased by 17%, primarily due to higher night vision systems and medical instrumentation sales [8] Market Data and Key Metrics Changes - In the third quarter of 2024, revenue contributions were as follows: Europe 25%, North America 23%, Asia-Pacific 18%, and Israel 29% [9] - Israel revenues continued to grow, particularly in the land segment, due to the prolonged conflict in the region [10] Company Strategy and Development Direction - The company aims to reach over $7 billion in revenue by 2025 and targets a non-GAAP operating margin of around 10% by 2026 [17] - The company is expanding production facilities and increasing inventory levels to address growing backlog and supply chain challenges [16] - The company continues to seek acquisitions to enhance its technological portfolio and market position [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth due to strong global demand for their solutions across various markets [34] - The backlog of orders as of September 30, 2024, was $22.1 billion, indicating potential for sustained growth [13] - Management noted that the main bottleneck to converting backlog to revenue is production capacity, which is being enhanced [38] Other Important Information - The company recorded new orders of $2.7 billion in the third quarter, with approximately 66% generated from outside Israel [13] - Operating cash flow for the nine months ending September 30, 2024, was $83 million inflow compared to $200 million outflow for the same period last year [14] Q&A Session Summary Question: About the Iron Beam contract and its future revenue contribution - Management believes high-power lasers are a growth engine and sees significant potential for these systems both domestically and internationally [24][25] Question: Regarding European sales decline and future demand - Management noted a 17% increase in Elbit Systems of America sales and expects higher demand in Europe due to increased defense expenditure [27] Question: Growth targets beyond 2025 - Management anticipates continued growth based on current backlog and demand, with expectations for double-digit growth in the coming quarters [34][36] Question: Operational income and gross margin expectations - Management expects increased profitability primarily through operational efficiency rather than significant improvements in gross margin [44] Question: Capex needs in light of backlog increase - Management indicated that capex levels are expected to remain consistent, with significant investments in the ERP system now behind them [58] Question: Details on the laser contract - The laser contract received is for the ground system, with ongoing development for the airborne version [65][68] Question: Significance of the decline in European sales - Management explained that while sales in Europe have not significantly declined, production limitations have affected sales, but backlog in Europe is increasing [76]

Financial Performance - Revenues for Q3 2024 were $1.7175 billion, up from $1.5016 billion in Q3 2023, representing a growth of 14.4%[5] - Non-GAAP net income was $98.8 million (5.8% of revenues) for Q3 2024, compared to $76.5 million (5.1% of revenues) in Q3 2023, reflecting a 29.1% increase[13] - GAAP net income for Q3 2024 was $79.1 million (4.6% of revenues), up from $60.7 million (4.0% of revenues) in Q3 2023, marking a 30.5% increase[13] - Non-GAAP diluted earnings per share were $2.21 for Q3 2024, compared to $1.71 for Q3 2023, an increase of 29.2%[13] - For the nine months ended September 30, 2024, GAAP gross profit was $1,176.6 million, an increase from $1,100.8 million for the same period in 2023, representing a growth of 6.9%[28] - Non-GAAP net income attributable to Elbit Systems' shareholders for the nine months ended September 30, 2024, was $272.2 million, compared to $229.0 million for the same period in 2023, reflecting an increase of 18.9%[28] - GAAP diluted net EPS for the nine months ended September 30, 2024, was $5.18, compared to $4.15 for the same period in 2023, an increase of 24.9%[28] - Total revenues for the nine months ended September 30, 2024, increased to $4,897.7 million, up 12.6% from $4,349.0 million in the same period of 2023[46] - Operating income for the nine months ended September 30, 2024, rose to $347.7 million, a 15.3% increase from $301.5 million in the same period of 2023[46] - Net income attributable to Elbit Systems Ltd.'s shareholders for the nine months ended September 30, 2024, was $231.1 million, compared to $185.1 million in the same period of 2023, reflecting a growth of 24.9%[46] Revenue Breakdown - Revenue from Israel increased to $1,395.1 million, accounting for 28.5% of total revenue, compared to $730.0 million and 16.8% in the previous year[49] - North America revenue rose to $1,082.4 million, representing 22.1% of total revenue, slightly up from $1,049.6 million and 24.1% in the prior year[49] - Europe generated $1,287.2 million in revenue, making up 26.3% of total revenue, down from $1,329.7 million and 30.6% in the previous year[49] - Asia-Pacific revenue decreased to $858.4 million, representing 17.5% of total revenue, compared to $968.1 million and 22.3% in the previous year[49] Segment Performance - Aerospace revenues increased by 7%, C4I and Cyber revenues by 13%, ISTAR and EW revenues by 13%, and Land revenues by 24% in Q3 2024 compared to Q3 2023[6] - The Aerospace segment reported external customer revenue of $1,216.2 million for the nine months ended September 30, 2024, up from $1,188.1 million in the same period last year[50] - C4I and Cyber segment external customer revenue increased to $558.4 million, compared to $490.7 million in the previous year[50] - ISTAR and EW segment external customer revenue rose to $832.8 million, up from $735.6 million in the prior year[50] - Land segment external customer revenue increased significantly to $1,144.0 million, compared to $884.7 million in the previous year[50] - Total revenues from reportable segments for the nine months ended September 30, 2024, were $5,340.4 million, up from $4,769.2 million in the previous year[50] Cash Flow and Investments - Cash flow from operating activities was $82.5 million for the nine months ended September 30, 2024, compared to cash flow used of $200.0 million in the same period of 2023[14] - The company reported a net cash provided by operating activities of $82.5 million for the nine months ended September 30, 2024, compared to a net cash used of $200.0 million in the same period of 2023[48] - The company invested approximately $87 million in new manufacturing facilities during the nine months ended September 30, 2024[48] Order Backlog and Contracts - The order backlog reached a record high of $22.1 billion, with approximately 66% of it from international orders[13] - The company was awarded a contract worth approximately $200 million by the Israeli Ministry of Defense for high-power laser systems for the "Iron Beam" air defense system[30] - A follow-on contract of approximately $127 million was awarded for the supply of Iron Fist Active Protection Systems to General Dynamics, to be performed over 34 months[31] - Contracts totaling approximately $335 million were awarded to supply defense systems to a European country, including PULS™ rocket launchers and Hermes™ 900 Unmanned Aircraft Systems[32] Research and Development - Research and development expenses were $119.9 million (7.0% of revenues) in Q3 2024, up from $103.3 million (6.9% of revenues) in Q3 2023[9] - Research and development expenses for the nine months ended September 30, 2024, were $335.2 million, representing an increase of 9.2% from $307.1 million in the same period of 2023[46] Operational Challenges - Approximately 8% of employees were recruited for reserve duty as of September 30, 2024, impacting operations and supply chains[18] Dividends - The Board of Directors declared a dividend of $0.50 per share, with a record date of December 23, 2024[33]

Core Viewpoint - Elbit Systems Ltd. has been awarded contracts totaling approximately $335 million to supply defense systems to a European country, which includes PULS rocket launchers and Hermes 900 Unmanned Aircraft Systems [1] Group 1: Contracts and Financials - The contracts will be executed over a period of three years and six months [1] - Elbit Systems reported approximately $1.6 billion in revenues as of June 30, 2024, with an order backlog of approximately $21.1 billion [6] Group 2: Product Details - The PULS system offers a versatile solution for launching unguided rockets, precision-guided munitions, and missiles, adaptable to various platforms, which reduces maintenance and training costs [2] - The Hermes 900 is Elbit Systems' largest unmanned aerial vehicle, designed for a variety of missions including intelligence, surveillance, and reconnaissance, and has been selected by over 20 customers globally since its introduction in 2011 [3] Group 3: Leadership Perspective - Bezhalel Machlis, President and CEO, emphasized the company's commitment to providing advanced defense solutions that enhance operational effectiveness and adaptability, reflecting global trust in their innovative systems [4]

Group 1 - Investors are maintaining a 15% increase in Elbit Systems' stock following the announcement of its high-powered laser interception system [1] - The focus is on Israel-domiciled stocks within various ETFs, including iShares MSCI Israel ETF, VanEck Israel ETF, Amplify Bluestar Israel Technology ETF, and ARK Israel Innovative Technology ETF [1]

Group 1 - Elbit Systems Ltd. has been awarded a follow-on contract worth approximately $127 million to supply Iron Fist Active Protection Systems to General Dynamics Ordnance and Tactical Systems for upgrades to the U.S. Army's Bradley M2A4E1 Infantry Fighting Vehicles [1] - The contract will be executed over a period of 34 months, indicating a long-term commitment to enhancing military capabilities [1] - The Iron Fist APS is designed to provide 360-degree protection against various anti-tank threats, showcasing its advanced technology and effectiveness in both open and urban environments [2][3] Group 2 - Elbit Systems is recognized for its innovative active protection systems, which are crucial for the self-defense of armored platforms [3] - The company employs over 20,000 people globally and reported revenues of approximately $1.6 billion as of June 30, 2024, with an order backlog of about $21.1 billion [5]

Company Overview - Elbit Systems is a leading global defense technology company that develops, manufactures, integrates, and sustains advanced solutions across multiple domains [4] - The company employs over 20,000 people in various countries across five continents [5] Financial Performance - As of June 30, 2024, Elbit Systems reported approximately $1.6 billion in revenues and an order backlog of approximately $21.1 billion [5] Upcoming Events - Elbit Systems will release its third quarter 2024 financial results on November 19, 2024 [1] - A conference call to discuss the results will be held at 10:00 am Eastern Time, with management available to answer questions [2]

Elbit Systems Ltd. (NASDAQ:ESLT) Q2 2024 Earnings Conference Call August 14, 2024 9:00 AM ET Company Participants David Ravia - Investor Relations Director Butzi Machlis - President and CEO Kobi Kagan - Chief Financial Officer Conference Call Participants Pete Skibitski - Alembic Global Greg Konrad - Jefferies Omri Efroni - Oppenheimer Operator Ladies and gentlemen, thank you for standing by. Welcome to Elbit Systems Second Quarter 2024 Results Conference Call. All participants are present in listen only mo ...