Israeli defense tech firm Elbit Systems' Q2 profit rises; Europe demand boosts orders

Elbit Systems

11/08/2026 08:32

Overview
Israel defense technology firm's Q2 revenue rose 16% yr/yr to $2.3 bln
Net profit grows; Adjusted EPS increased to $4.14 from $3.23 yr/yr
Order backlog reached a record $32 bln, driven mainly by demand from Europe

Outlook
Company says demand from Israel Ministry of Defense may remain elevated due to regional conflicts
Elbit Systems says operational disruptions have eased but could intensify if hostilities resume
Company continues to invest in R&D and production to support future growth and capacity

Result Drivers
SEGMENT GROWTH - Revenue increases in C4I and Cyber, ISTAR and EW, and Land segments, driven by higher sales in Europe, Asia-Pacific, and Israel
US BUSINESS MIX - Elbit Systems of America revenues rose 17% due to a one-time favorable project mix and higher sales of night-vision, maritime, and electronic systems
AEROSPACE DECLINE - Aerospace revenues fell 8% due to an unfavorable project mix and lower training and simulation sales in Europe, partly offset by higher UAV sales in Israel

Company press release: ID:nPn6XBb1Xa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$2.30 bln
 
Q2 Adjusted EPS
 
$4.14
 
Q2 EPS
 
$3.61
 
Q2 Adjusted Gross Profit
 
$586.50 mln
 
Q2 Adjusted Operating Income
 
$237.50 mln
 
Q2 Gross Profit
 
$579 mln
 
Q2 Operating Income
 
$218.80 mln
 
Q2 Order Backlog
 
$32 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy."
The stock recently traded at 52 times the next 12-month earnings vs. a P/E of 53 three months ago

Reuters Recommended Reads
Aug 11 - Elbit Systems Q2 profit, revenue jump
Aug 10 - Defense tech firm Lyntris targets $2.5 billion valuation in US IPO
Aug 10 - Kopin Q2 revenue rises 51% on government grants, higher defense sales

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)