Tel Aviv – Elbit Systems, Israel’s largest military technology firm, announced a significant surge in its third-quarter profits on Tuesday. The boost is attributed to increased sales to the Israeli military during the Gaza conflict and a rise in global, particularly European, defense spending.
Company officials expressed optimism regarding the continued accumulation of orders, anticipating further growth in sales and profits. Kobi Kagan, Elbit’s Chief Financial Officer, stated that the company’s performance is improving in converting its order backlog into revenue and earnings.
Following the acquisition of additional European contracts, Elbit’s total order backlog reached $25.2 billion. Approximately 69% of the total orders originate from outside Israel, with 38% slated for execution during the remainder of 2025 and throughout 2026.
The company reported earnings of $3.35 per diluted share, excluding non-recurring items, for the period spanning July to September, a notable increase from $2.21 in the same quarter last year. Revenue climbed to $1.92 billion from $1.72 billion.
Elbit’s shares, listed on the Nasdaq, rose by 0.5% to $505.74. CEO Bezhalel Machlis noted that despite the ceasefire after two years of conflict in the Gaza Strip, companies that had paused procurement during the war have resumed their orders. In Israel, he said, there is a “critical need to rebuild inventory.”
Israeli Prime Minister Benjamin Netanyahu has emphasized the need for defense industries to become more reliant on Israeli manufacturing. Machlis told Reuters that Elbit Systems has introduced products combining several of its technologies, including a long-range air-to-surface missile. He added that the strong order backlog “indicates stability in the coming years.”
The results were supported by a 14% increase in the company’s revenue from command, control, communications, computer, intelligence, surveillance, and reconnaissance (C4ISR) systems. Over 33% of the company’s revenue came from Israel, which engaged in conflict in Gaza from October 7, 2023, until the ceasefire agreement last month.
