Elbit Systems Ltd. (ESLT) is celebrating a resounding victory after its third-quarter earnings report significantly exceeded analysts’ predictions, sending its shares soaring in premarket trading. The company announced revenue of $1.718 billion, comfortably surpassing the consensus estimate of $1.608 billion. This robust performance was fueled by strong growth across all its segments.
Breaking down the segmental performance reveals impressive year-over-year increases: Aerospace saw a 7% jump to $492.2 million; C4I and Cyber experienced a significant 13% surge, reaching $213.4 million; ISTAR and EW also climbed 13%, totaling $323.9 million; Land systems saw the most dramatic growth at 24%, reaching $421.8 million; and Elbit Systems of America (ESA) contributed $416.6 million, representing a 17% increase. While the adjusted gross margin slightly contracted to 24.4% from 24.9% year-over-year, the adjusted operating margin remained steady at 8.2%, demonstrating efficient management of resources. Adjusted earnings per share (EPS) soared to $2.21, exceeding the consensus estimate of $1.86 and significantly outpacing the previous year’s $1.71.
Further solidifying its strong position, Elbit Systems boasts a substantial backlog of orders totaling $22.1 billion as of September 30th. This substantial backlog underscores the company’s secure future and continued demand for its advanced technologies. Operating cash flow for the nine months ended September 30th reached $82.5 million, highlighting the company’s robust financial health.
CEO Bezhalel (Butzi) Machlis expressed his satisfaction with the results, stating, “Elbit Systems reports a strong quarter, with substantial growth across key performance measures exceeding our internal goals, while meeting our customers’ needs in Israel and worldwide.” This positive outlook reinforces investor confidence in the company’s trajectory.
The good news doesn’t end there. Elbit Systems recently secured two major contracts. A $335 million deal will supply a European country with PULS rocket launchers, rockets, and Hermes 900 UAS equipped with advanced payloads. Separately, a $200 million contract with the Israeli Ministry of Defense will provide high-power lasers for the “Iron Beam” air defense system. These contracts not only contribute significantly to the company’s revenue but also highlight the strategic importance of Elbit Systems’ technology in global defense.
To further reward its shareholders, Elbit Systems declared a dividend of $0.50 per share, payable on January 6th to shareholders of record on December 23rd. This dividend payout adds another layer of appeal to the already positive financial picture.
The market reacted enthusiastically to this news, with ESLT shares experiencing a 3.77% increase, reaching $244.00 in premarket trading. This surge underscores investor confidence in Elbit Systems’ continued growth and success in the defense technology sector.
