Khaberni - Elbit Systems, the largest Israeli company for military industries, said on Tuesday that it had achieved a significant increase in third-quarter profits, supported by sales to the Israeli military during the war on the Gaza Strip, and an increase in global, specifically European, defense spending.
Company officials expressed their expectations that the accumulation of orders will continue, which will in turn lead to an increase in sales and profits. Kobi Kagan, the company's CFO, stated that Elbit Systems is improving in terms of converting order backlogs into revenues and profits.
After securing more European contracts, the total backlog orders of the company reached $25.2 billion, with about 69% of the total orders coming from outside Israel, and 38% of them scheduled for execution during the remainder of 2025 and in 2026.
The company said that its earnings reached $3.35 per diluted share after excluding non-recurring items for the quarter from July to September, up from $2.21 in the same quarter last year.
Revenues rose to $1.92 billion from $1.72 billion.
The company's shares listed on NASDAQ increased by 0.5% to $505.74.
The CEO of the company, Bezhalel Machlis, said that despite the ceasefire after two years of war in the Gaza Strip, companies that had stopped purchasing operations during the war have resumed their orders, and in Israel, "there is a desperate need to replenish stock."
Israeli Prime Minister Benjamin Netanyahu said that there is a need for defense industries to rely more on Israeli industry.
Machlis told Reuters that Elbit Systems launched products in the market that combine a number of its technologies, including a long-range surface-to-air missile. He added that the strong backlog "indicates a state of stability over the coming years."
The results were supported by a 14% increase in the company's revenues from command, control, communications, computers, intelligence, surveillance, and reconnaissance systems.
More than 33% of the company's revenue came from Israel, which fought Gaza from October 7, 2023, until last month's ceasefire agreement. During the war, the company supplied ammunition, drones, guided missile systems, reconnaissance capabilities, and other systems.
Sales to Europe, which is currently increasing defense spending, rose to $536 million from $430 million in the same quarter last year, representing 28% of the revenues.
Elbit Systems announced on Monday that it had secured an international contract worth $2.3 billion, extending over 8 years, but did not delve into further details.
The company said it would distribute quarterly dividends of 75 cents per share.
