Elbit Systems Posts Record 2025 Results and Backlog as Global Defense Demand Surges
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Elbit Systems ( (IL:ESLT) ) just unveiled an announcement.
On March 17, 2026, Elbit Systems reported strong fourth-quarter and full-year 2025 results, underscoring a step-up in scale and profitability driven by surging demand across key defense markets. The company’s order backlog reached a record $28.1 billion, while 2025 revenues climbed 16.3% year-on-year to $7.94 billion, GAAP net income rose to $534 million, and non-GAAP net income to $598 million, translating into GAAP EPS of $11.39 and non-GAAP EPS of $12.75.
Fourth-quarter 2025 revenues grew 11.3% to $2.15 billion, with notable strength in C4I and Cyber, ISTAR and EW, land systems and Elbit Systems of America, partially offset by weaker aerospace training and simulation activity in Europe. Profitability improved as GAAP operating margin rose to 9.0% in the quarter and 8.5% for the year, supported by higher gross margins, lower financial expenses and one-off other income, while record free cash flow above $550 million and more than $500 million in R&D and capacity-related capex signal an acceleration of investment to meet global defense demand.
CEO Bezhalel Machlis highlighted that 2025 marked “excellent financial results,” citing 59% growth in GAAP EPS and substantial backlog expansion of $5.5 billion, including landmark laser weapon contracts from Israel’s Ministry of Defense for high-power airborne systems on combat jets and helicopters. The company is heavily investing in disruptive R&D, particularly AI enhancements, and expanding production capacity in ammunition, munitions and night-vision solutions, moves that aim to alleviate global capacity constraints and reinforce its strategic role supplying the Israel MOD, IDF and international customers amid heightened geopolitical tensions.
Segment-wise, 2025 revenue growth was broad-based, with land revenues up 38% on strong ammunition and munitions demand in Israel and Europe, C4I and Cyber and ISTAR and EW each up 16%, and Elbit Systems of America up 7% as night-vision and maritime sales offset weaker medical devices. Aerospace posted a modest 2% increase for the year, buoyed by precision-guided munitions sales in Asia-Pacific and Israel despite softer training and simulation revenues in Europe, reflecting a shift in mix toward high-intensity combat capabilities.
The company’s improved profitability was reflected in higher GAAP and non-GAAP gross margins and a rise in operating income to $671.4 million GAAP and $737.8 million non-GAAP in 2025, versus $489.1 million and $550.4 million a year earlier. While tax expenses increased versus 2024, when they were unusually low due to settlement-related adjustments, net income still advanced sharply, aided by increased equity earnings from affiliates and capital gains from pension plan terminations and investment revaluations, providing additional support to earnings and balance sheet strength.
The most recent analyst rating on (IL:ESLT) stock is a Buy with a ILs256849.00 price target. To see the full list of analyst forecasts on Elbit Systems stock, see the IL:ESLT Stock Forecast page.
More about Elbit Systems
Elbit Systems Ltd. is an international high-technology defense company based in Haifa, Israel, listed on NASDAQ and the Tel Aviv Stock Exchange under the ticker ESLT. The group develops and supplies a broad portfolio of defense electronics including C4I and cyber solutions, ISTAR and electronic warfare systems, land and ammunition products, aerospace and precision-guided munitions, and night-vision and maritime systems, with a growing presence across Europe, the U.S. and Asia.
Average Trading Volume: 87,397
Technical Sentiment Signal: Buy
Current Market Cap: ILs127.7B
See more data about ESLT stock on TipRanks’ Stock Analysis page.
