Core Insights - Elbit Systems has secured a significant $1.635 billion contract with a European country, enhancing its role as a prime systems integrator in the defense sector [2][3] - The company reported a strong second-quarter earnings performance, with non-GAAP EPS of $3.23, exceeding analyst expectations of $2.57, and revenue growth of 21% year-over-year to $1.97 billion [3][4] - Elbit's order backlog reached a record $23.8 billion, providing multi-year revenue visibility and indicating strong future growth potential [6][7] Financial Performance - The company's revenue for the second quarter was $1.97 billion, reflecting a 21% increase from the previous year [4] - Non-GAAP EPS increased by 55% to $3.23, significantly surpassing the consensus estimate [3][4] - The board raised the quarterly dividend by 25% to 75 cents per share, signaling confidence in sustained profitability [3][8] Market Position and Strategy - Elbit Systems is strategically positioned to benefit from rising global defense budgets, which are driving demand for advanced technologies [10] - The company's glocal strategy, operating through local subsidiaries, helps mitigate geopolitical risks and fosters trust in key markets [11] - 68% of the order backlog comes from international customers, showcasing a successful diversification strategy [7] Business Segment Performance - Revenue from Land Systems increased by 45% year-over-year, driven by high demand for ammunition and advanced munitions [9] - C4I and Cyber revenue grew by 21%, supported by sales of modern command, control, and communications systems [9] - ISTAR and EW revenue rose by 15%, highlighting the importance of advanced intelligence and electronic warfare solutions [9]

Financial Data and Key Metrics Changes - The company reported second quarter 2025 revenues of $1,973 million, up from $1,626 million in 2024, reflecting a year-over-year growth of approximately 21.3% [6][7] - GAAP gross margin remained stable at 24% compared to the same quarter in 2024, while non-GAAP gross margin was also consistent at 24.4% [7][8] - GAAP operating income increased to $157.8 million (8% of revenues) from $116.5 million (7.2% of revenues) in 2024, indicating improved profitability [8] - Non-GAAP diluted EPS rose to $3.23 in 2025 from $2.08 in 2024, showcasing significant earnings growth [12] Business Line Data and Key Metrics Changes - Aerospace revenue increased by 12% year-over-year, driven by higher sales of precision guided munitions in Israel and Asia Pacific [12] - C4I and fiber revenues grew by 21% year-over-year, primarily due to sales of radio systems and command and control systems in Israel and Europe [13] - Land revenues surged by 45% in 2025, attributed to increased sales of ammunition and munitions in Israel and Europe [13] - IStar and EW revenues rose by 15%, mainly due to electro-optical system sales in Israel and electronic warfare system sales in Europe [13] Market Data and Key Metrics Changes - In 2025, Europe contributed 29% to total revenues, North America 21%, Asia Pacific 13%, and Israel 34% [7] - The order backlog as of June 30, 2025, was $23.8 billion, reflecting a 12% increase from the corresponding quarter in 2024 [6][14] - Approximately 68% of the current backlog is from international orders, with 46% scheduled for delivery in 2025 and 2026 [14] Company Strategy and Development Direction - The company plans to utilize proceeds from a recent share offering of $573 million to support future business growth and expand production capacity [17] - There is a focus on mergers and acquisitions to acquire new technologies and expand global reach [17] - The company aims to enhance its operational capabilities and market presence, particularly in Europe, through significant new contracts [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong financial performance, with internal targets indicating double-digit growth for 2026 [37] - The geopolitical situation in the Middle East has increased demand for defense solutions, positioning the company favorably in the market [53][58] - Management highlighted the importance of operational experience and a wide portfolio in meeting customer needs and driving growth [56][58] Other Important Information - The company declared a dividend of $0.75 per share, a 50% increase from the previous year, reflecting strong financial performance [15] - The effective tax rate decreased to 5.6% in 2025 from 13.2% in 2024, primarily due to increased deferred tax assets [12] Q&A Session Summary Question: Margin expansion outlook for the second half of the year - Management indicated a commitment to margin expansion through operational leverage and new ERP systems, aiming for continued improvement [28] Question: Updates on IronBeam and supply chain for SRMs - The company is developing high-power laser sources for IronBeam, with initial deliveries expected soon and strong interest from international customers [29][30] Question: Year-to-date growth and outlook for 2026 - Management confirmed internal targets for mid-teens growth in 2025 and double-digit growth for 2026, supported by a strong backlog [36][37] Question: Sustainability of land segment growth - The land segment is expected to continue growing due to high demand for various products, including ammunition and advanced systems [40][41] Question: Future development plans for UAS counter-drone measures - The company is actively developing the RidgeOne system, which combines various technologies and has seen successful exports to NATO countries [48][50] Question: Capital expenditure expectations for 2025 - The running rate for capital investments is around $250 million, with potential increases based on recent funding [51] Question: Impact of geopolitical positioning on demand - The company is experiencing increased demand for defense solutions and is well-positioned to offer advanced capabilities to international customers [53][58]

Financial Data and Key Metrics Changes - The company reported revenues of $1,973 million for Q2 2025, up from $1,626 million in Q2 2024, reflecting a year-over-year growth of approximately 21.4% [5] - GAAP gross margin remained stable at 24% compared to the same quarter in 2024, while non-GAAP gross margin was 24.4% for both years [6] - GAAP operating income increased to $157.8 million (8% of revenues) from $116.5 million (7.2% of revenues) in the previous year, indicating improved profitability [6] - Non-GAAP diluted EPS rose to $3.23 in 2025 from $2.08 in 2024, showcasing significant earnings growth [9] Business Line Data and Key Metrics Changes - Aerospace revenue grew by 12% year-over-year, driven by increased sales of precision guided munitions and UAS in Israel and Asia Pacific [9] - C4I and fiber revenues saw a 21% increase, primarily due to sales of radio systems and command and control systems in Israel and Europe [10] - Land revenues surged by 45%, attributed to ammunition and munitions sales in Israel and Europe [10] - IStar and EW revenues increased by 15%, mainly due to sales of electro-optical systems and electronic warfare systems [10] Market Data and Key Metrics Changes - In Q2 2025, Europe contributed 29% to total revenues, North America 21%, Asia Pacific 13%, and Israel 34% [5] - The order backlog as of June 30, 2025, was $23.8 billion, reflecting a 12% increase from the same quarter in 2024 [4][11] - Approximately 68% of the current backlog is from international orders, with 46% scheduled for delivery in 2025 and 2026 [11] Company Strategy and Development Direction - The company plans to utilize proceeds from a recent share offering of $573 million to support future business growth and potentially engage in M&A activities [13] - The company aims to expand its footprint in Europe, as evidenced by recent contract wins and ongoing projects [16][17] - Investment in R&D remains a priority, with net R&D expenses at $129.7 million, representing 6.6% of revenues [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued double-digit growth, supported by a strong backlog and robust demand across all segments [22][27] - The geopolitical situation in the Middle East has created increased demand for defense solutions, positioning the company favorably in the market [41][45] - The company is optimistic about future opportunities, citing unprecedented demand for its advanced solutions globally [45] Other Important Information - The board of directors declared a dividend of $0.75 per share, a 50% increase from the previous year [12] - The company is progressing with the construction of a new production site, expected to enhance operational efficiency with AI and robotic solutions [19] Q&A Session Summary Question: Margin expansion outlook for the second half of the year - Management highlighted ongoing efforts to improve margins through operational leverage and new ERP systems, aiming for continued margin expansion [22] Question: Updates on IronBeam and supply chain for SRMs - The company is developing high-power laser sources for IronBeam, with initial deliveries expected soon and strong interest from international customers [24] Question: Year-to-date growth and outlook for 2026 - Management confirmed internal targets for mid-teens growth in 2025 and double-digit growth for 2026, supported by a strong backlog [27][28] Question: Sustainability of land segment growth - The land segment experienced a 45% increase, driven by high demand for various products, and is expected to continue growing [30][31] Question: CapEx investments and future plans - Current CapEx investment is around $250 million, with plans to expand based on recent funding from a follow-on offering [39] Question: Geopolitical challenges and defense demand - Management noted a growing global demand for defense solutions, leveraging operational experience and a wide portfolio to meet customer needs [41][43]

Financial Highlights - Elbit Systems' market capitalization is approximately $22 billion as of August 12, 2025[7] - The company's order backlog reached $238 billion as of June 30, 2025[7] - Revenues for the Last Twelve Months (LTM) Q2 2025 were $75 billion, compared to $63 billion in LTM Q2 2024[7] - Non-GAAP diluted net earnings per share (EPS) for Q2 2025 increased by 55% to $323, compared to $208 in Q2 2024[36] - Free cash flow for Q2 2025 was a positive $74 million, a significant increase of $77 million compared to $(3) million in Q2 2024[36] - The company's backlog increased by 27% to $238 billion in Q2 2025 from $211 billion in Q2 2024[36] Revenue Breakdown - Europe accounts for 26% of Elbit Systems' LTM 2025 revenues[40] - North America contributes 22% of the company's LTM 2025 revenues[41] - Israel represents 31% of Elbit Systems' LTM 2025 revenues[41] - Aerospace segment accounts for 27% ($2174 million) of LTM 2025 revenues[40]

Financial Performance - Revenues for Q2 2025 were $1.9727 billion, a 21% increase year over year from $1.6262 billion in Q2 2024[5] - GAAP net income was $125.7 million (6.4% of revenues), up from $78.4 million (4.8% of revenues) in Q2 2024[13] - Non-GAAP net income increased to $151.0 million (7.7% of revenues) from $92.7 million (5.7% of revenues) in Q2 2024[13] - Non-GAAP diluted EPS rose to $3.23, a 55% increase from $2.08 in Q2 2024[13] - Revenues for the six months ended June 30, 2025, increased to $3,868,460 thousand, up 21.6% from $3,180,108 thousand in the same period of 2024[38] - Net income attributable to Elbit Systems Ltd.'s shareholders for the six months ended June 30, 2025, was $232,784 thousand, compared to $152,038 thousand in the same period of 2024, reflecting a 53% increase[38] - GAAP net income attributable to Elbit Systems' shareholders for the six months ended June 30, 2025, was $232.8 million, compared to $152.0 million in 2024, marking a 53.1% increase[51] - Non-GAAP net income attributable to Elbit Systems' shareholders for the three months ended June 30, 2025, was $151.0 million, compared to $92.7 million in 2024, reflecting a 62.8% increase[51] Revenue Breakdown - Order backlog totaled $23.8 billion, with approximately 68% attributed to orders outside of Israel[13] - Aerospace revenues increased by 12%, driven by Precision Guided Munition sales in Israel and Asia Pacific[6] - Land revenues surged by 45%, primarily due to ammunition sales in Israel and Europe[6] - Revenue from Israel for the six months ended June 30, 2025, was $1,279.6 million, representing 33.1% of total revenue, compared to 28.2% in the same period of 2024[41] - Aerospace segment revenue for the six months ended June 30, 2025, reached $1,041.1 million, up from $903.1 million in 2024, marking a 15.3% increase[42] - C4I and Cyber segment revenue increased to $446.8 million for the six months ended June 30, 2025, compared to $384.7 million in 2024, reflecting a 16.1% growth[42] - ISTAR and EW segment revenue for the six months ended June 30, 2025, was $728.5 million, up from $664.9 million in 2024, indicating a 9.6% increase[42] - Total revenues from external customers and intersegment for reportable segments amounted to $4,173.7 million for the six months ended June 30, 2025[42] - The company reported intersegment revenue of $305.2 million for the six months ended June 30, 2025, compared to $292.4 million in 2024[42] Operating Metrics - Cash flow from operating activities for the first half of 2025 was $304.0 million, compared to $26.0 million in the same period of 2024[14] - Gross profit for the six months ended June 30, 2025, was $927,220 thousand, representing a gross margin of 24% compared to 24% in the previous year[38] - Operating income for the six months ended June 30, 2025, rose to $307,526 thousand, a 38.7% increase from $221,847 thousand in 2024[38] - Non-GAAP gross profit and operating income metrics are used to provide a clearer view of ongoing performance, excluding non-recurring items and amortization expenses[43][44] - Non-GAAP operating income for the six months ended June 30, 2025, was $340.3 million, up from $252.1 million in 2024, reflecting a 34.9% increase[51] - GAAP operating income for the three months ended June 30, 2025, was $157.8 million, an increase from $116.5 million in 2024, representing a growth of 35.4%[51] Cash and Assets - Cash and cash equivalents decreased to $109,112 thousand as of June 30, 2025, down from $265,351 thousand at the end of 2024[36] - Total assets increased to $12,096,945 thousand as of June 30, 2025, compared to $10,971,596 thousand as of December 31, 2024[36] - Total current liabilities rose to $5,694,018 thousand as of June 30, 2025, compared to $5,311,168 thousand at the end of 2024[36] - The company reported a net cash provided by operating activities of $303,970 thousand for the six months ended June 30, 2025, compared to $25,997 thousand in the same period of 2024[40] Research and Development - Research and development expenses for the six months ended June 30, 2025, were $243,937 thousand, up from $215,320 thousand in 2024, indicating a focus on innovation[38] - The company continues to invest in new technologies and market expansion strategies to drive future growth[51] Shareholder Returns - The company declared a dividend of $0.75 per share, with a record date of October 14, 2025[24] - The company issued shares amounting to $573,000 thousand during the reporting period, reflecting a strategy to strengthen its capital base[40] Earnings Per Share - Non-GAAP diluted net EPS attributable to Elbit Systems' shareholders for the six months ended June 30, 2025, was $5.81, up from $3.89 in 2024, indicating a growth of 49.4%[51] - The company reported a GAAP diluted net EPS of $5.05 for the three months ended June 30, 2025, compared to $3.41 in 2024, indicating a growth of 48.3%[51]

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

Core Viewpoint - Elbit Systems has secured a $1.635 billion contract to provide advanced defense solutions to a European country, with implementation expected over a 5-year period [1][4]. Group 1: Contract Details - The contract encompasses two groups of technologically advanced solutions, including long-range precision strike artillery-rocket systems and unmanned reconnaissance systems [2]. - The second group features sophisticated ISTAR capabilities, including SIGINT, COMINT, electronic warfare systems, and advanced electro-optical and night-vision systems [3]. Group 2: Company Overview - Elbit Systems is a leading global defense technology company, employing approximately 20,000 people across five continents and reporting $1.9 billion in revenues for the three months ended March 31, 2025 [5][6]. - The company has an order backlog of $23.1 billion as of the same date, indicating strong demand for its solutions [6]. Group 3: Leadership Statement - Bezhalel Machlis, President and CEO of Elbit Systems, emphasized the strong demand for the company's technologies in Europe and the importance of this contract in enhancing national security [4].

Group 1 - Gabelli Funds, LLC is hosting the annual Aerospace & Defense Symposium on September 4, 2025, at The Harvard Club in New York City, focusing on strong demand outlook and high barriers to entry in the industry [1] - The symposium will feature top executives from over ten companies, discussing themes such as large aftermarket opportunities, growth exceeding GDP, defense spending, and M&A potential [1] - Attendees will have the opportunity for one-on-one meetings with management, enhancing networking and investment insights [1] Group 2 - Featured companies at the symposium include AIRO Group Holdings, Elbit Systems, Albany International, Graham Corporation, and several others, indicating a diverse representation within the Aerospace and Defense sector [2] - The event is set to start at 8:30 am, providing a structured schedule for discussions and networking [3]

Core Insights - Elbit Systems Ltd. has been awarded two contracts totaling approximately $260 million for advanced airborne munitions to the Israel Ministry of Defense [1][2] - The contracts highlight the company's commitment to providing cutting-edge technologies that enhance the operational readiness of the Israel Defense Forces [2] - Elbit Systems aims to expand its portfolio of advanced solutions, which are expected to attract global interest due to their relevance to emerging operational needs [2] Company Overview - Elbit Systems is a leading global defense technology company, focusing on delivering advanced solutions for security and safety [3] - The company employs around 20,000 people across five continents and reported revenues of $1.9 billion for the three months ending March 31, 2025, with an order backlog of $23.1 billion [4]

Core Viewpoint - Elbit Systems Ltd. will announce its Second Quarter 2025 financial results on August 13, 2025, and will host a conference call to discuss these results [1][2]. Financial Results Announcement - The financial results will be published on August 13, 2025, at 9:00am ET [1]. - A conference call will take place on the same day at 9:00am ET, where management will review the results and answer questions [2]. Company Overview - Elbit Systems is a leading global defense technology company, providing advanced solutions for security and safety [4]. - The company employs approximately 20,000 people across five continents and reported revenues of $1.9 billion for the three months ended March 31, 2025 [5]. - As of March 31, 2025, Elbit Systems had an order backlog of $23.1 billion [5].