Elbit Systems Ltd. announced a new international defense contract worth approximately $2.3 billion, to be delivered over an eight‑year period. The deal, the largest in the company’s history, adds a substantial long‑term revenue stream and reinforces its position as a key supplier to global defense customers.
The contract pushes Elbit’s order backlog to $23.8 billion as of June 30 2025, a record high that is 68 % of the backlog outside Israel. Revenue growth accelerated to 21 % year‑over‑year in Q2 2025, driven by a 45 % increase in the Land segment, a 12 % rise in Aerospace, and a 21 % jump in C4I and Cyber. The eight‑year delivery schedule provides predictable cash flow and supports the company’s expansion plans.
CEO Bezhalel Machlis said the deal demonstrates Elbit’s technological leadership and the company’s ability to secure long‑cycle strategic contracts. He highlighted that the contract reflects sustained demand for advanced systems amid heightened global defense spending, especially in Europe, and that it provides recognition of the company’s unique capabilities.
The announcement was well received by investors, with analysts noting the contract’s size and duration as key tailwinds. The company’s Q2 2025 earnings beat consensus expectations, with EPS of $0.21 versus a consensus of $0.17—a $0.04 or 24 % beat—driven by strong demand and effective cost control.
Margin expansion in Q2 2025, with operating income rising to 8.0 % of revenue from 7.2 % in the prior year, reflects pricing power and operational leverage. The new contract, combined with the company’s robust backlog, positions Elbit to sustain growth, invest in AI and advanced systems, and capitalize on rising defense budgets worldwide.
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