Elbit Systems Reports Strong Earnings and Rising Backlog

Elbit Systems, a combat drone maker, impresses with fourth-quarter results, beating revenue and profit expectations. Its stock surged 12% as it reports a growing order backlog of $22.6 billion, indicating strong future demand.

Date: 22-03-2025

AI Rating: 8

Positive Earnings Surprise: Elbit Systems has reported strong earnings results that exceeded analyst expectations significantly. The company's revenue reached just over $1.93 billion, surpassing the $1.75 billion anticipated by analysts. This reflects a robust revenue growth compared to $1.63 billion in the same period of the previous year.

Net Income Performance: The company also showcased an impressive jump in profitability, with non-GAAP adjusted net income increasing by 71% to over $119 million. This resulted in earnings per share (EPS) of $2.66, outperforming the analysts' prediction of $1.85 per share. These results indicate a strong upward trend in the company's profitability.

Increasing Demand: CEO Butzi Machlis noted that the company secured significant contracts across the globe, positioning Elbit Systems favorably within the context of rising global defense budgets. The company's portfolio and technological investments further enhance its ability to capitalize on increased demand.

Growing Backlog: Elbit reported a substantial order backlog of $22.6 billion, representing a significant increase from $17.8 billion at the end of the previous year. With approximately 57% of this backlog scheduled for delivery within the next two years, Elbit is poised for continued growth in revenue and net income over the coming periods. The growing backlog is a positive indicator for future earnings potential.

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