Order backlog at $23.1 billion; Revenues of $1.9 billion; GAAP net income of $107.1 million; Non-GAAP net income of $117.2 million; GAAP net EPS of $2.35; Non-GAAP net EPS of $2.57
HAIFA, Israel, May 20, 2025 -- Elbit Systems Ltd. ("Elbit Systems" or the "Company") (NASDAQ: ESLT) (TASE: ESLT), the international high technology defense company, reported today its consolidated results for the first quarter ended March 31, 2025.
In this release, the Company is providing US-GAAP results as well as non-GAAP financial data, which are intended to provide investors a more comprehensive view of the Company's business results and trends. For a description of the Company's non-GAAP definitions see page 10 below, "Non-GAAP financial data". Unless otherwise stated, all financial data presented is US-GAAP financial data.
Management Comment:
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented:
"Elbit Systems announces today another set of strong financial results posting double-digit growth in revenues, operating income and earnings per share for the fourth consecutive quarter, as numerous global conflicts serve to increase defense budgets. Revenues grew by an impressive 22% reflecting the increased demand for our products and solutions globally. Backlog continued to grow during the quarter and stands at over $23 billion up 14% from Q1 2024. Free cash flow generated during the quarter stood at $161 million. We believe Elbit is well positioned to capture and benefit from the opportunities of increasing defense budgets globally and particularly in Europe with our well-established subsidiaries across the continent as evident in our published contract wins. We are continuing to invest in increasing our production capacity and optimizing our supply chains in order to address our backlog and the high demand for our products. These results would not be possible without our dedicated employees worldwide, for which I am extremely grateful."
First quarter 2025 results:
Revenues in the first quarter of 2025 were $1,895.8 million, as compared to $1,554.0 million in the first quarter of 2024.
Aerospace revenues increased by 20% in the first quarter of 2025, as compared to the first quarter of 2024 mainly due to increased Precision Guided Munition (PGM) sales in Israel and Asia Pacific. C4I and Cyber revenues increased by 12% mainly due to radio systems and command and control systems sales in Israel and Europe. ISTAR and EW revenues increased by 4% mainly due to Electro-Optic systems sales in Europe. Land revenues increased by 48% due to ammunition and munition sales in Israel and Europe. Elbit Systems of America revenues increased by 18% due to the increase in Warfighters systems and medical instrumentation sales.
For distribution of revenues by segments and geographic regions see the tables on page 9.
GAAP gross profit in the first quarter of 2025 was $454.3 million (24.0% of revenues), as compared to $374.1 million (24.1% of revenues) in the first quarter of 2024. Non-GAAP(*) gross profit amounted to $460.6 million (24.3% of revenues) in the first quarter of 2025, as compared to $383.4 million (24.7% of revenues) in the first quarter of 2024.
Research and development expenses, net were $114.3 million (6.1% of revenues) in the first quarter of 2025, as compared to $98.5 million (6.3% of revenues) in the first quarter of 2024.
Marketing and selling expenses, net were $100.9 million (5.3% of revenues) in the first quarter of 2025, as compared to $89.1 million (5.7% of revenues) in the first quarter of 2024.
General and administrative expenses, net were $89.4 million (4.7% of revenues) in the first quarter of 2025, as compared to $81.2 million (5.2% of revenues) in the first quarter of 2024.
GAAP operating income in the first quarter of 2025 was $149.7 million (7.9% of revenues), as compared to $105.4 million (6.8% of revenues) in the first quarter of 2024. Non-GAAP(*) operating income was $165.1 million (8.7% of revenues) in the first quarter of 2025, as compared to $121.6 million (7.8% of revenues) in the first quarter of 2024.
Financial expenses, net were $39.0 million in the first quarter of 2025, as compared to $31.2 million in the first quarter of 2024. The increase in financial expenses during the first quarter of 2025 was mainly due to hedging transactions and the net effect of changes in the exchange rates of different currencies in which the Company operates.
Taxes on income were $16.1 million in the first quarter of 2025, as compared to $11.6 million in the first quarter of 2024.
GAAP net income attributable to the Company's shareholders in the first quarter of 2025 was $107.1 million (5.6% of revenues), as compared to $73.7 million (4.7% of revenues) in the first quarter of 2024. The increase in net income attributable to the Company's shareholders in the first quarter of 2025 was in line with the increase in the Company's activity and order backlog. Non-GAAP(*) net income attributable to the Company's shareholders in the first quarter of 2025 was $117.2 million (6.2% of revenues), as compared to $80.7 million (5.2% of revenues) in the first quarter of 2024.
GAAP diluted earnings per share attributable to the Company's shareholders in the first quarter of 2025 were $2.35, as compared to $1.65 in the first quarter of 2024. Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders were $2.57 for the first quarter of 2025, as compared to $1.81 for the first quarter of 2024.
The Company's order backlog as of March 31, 2025 totaled $23.1 billion. Approximately 66% of the current backlog is attributable to orders outside of Israel. Approximately 51% of the order backlog is scheduled to be performed during the remainder of 2025 and 2026.
Cash flow provided by operating activities in the first quarter of 2025 was $183.6 million, as compared to cash flow used in operating activities of $6.4 million in the first quarter of 2024. The cash flow in the first quarter of 2025 was affected mainly by an increase in net income and an increase in contract liabilities, which were offset by increases in inventories and trade receivables.
(*)see page 10
Impact of the "Swords of Iron" War on the Company:
The "Swords of Iron" war, which began on October 7, 2023, following the Hamas terrorists attack on Israeli civilian and military targets, followed by attacks from Iran and other terrorist organizations on different fronts including Hezbollah in Lebanon, the Houthi movement in Yemen and rebel militia in Syria, is still on-going, albeit in varied intensity levels.
Since the commencement of the war, Elbit Systems has experienced a material increase in the demand for its products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels prior to the war. At the same time, the Company and its subsidiaries around the world continued to conduct their business in international markets. Subject to further developments, which are difficult to predict, the IMOD's increased demand for the Company's products and solutions may continue and could generate material additional orders to the Company.
The majority of the Company's facilities in Israel continue to operate uninterrupted. Some of Elbit Systems' operations have experienced disruptions due to supply chain and operational constraints, including among others increases in transportation costs and delays due to factors such as the Houthi movement attacks on shipping in the Red Sea, material and component shortages, limitations imposed by some countries on exports to Israel and attacks on some of Elbit Systems' global facilities by anti-Israeli organizations.
Elbit Systems has taken a number of steps to protect the safety and security of its employees in Israel and abroad, to support increased production, mitigate existing and potential supply chain disruptions and to maintain business continuity, including increased monitoring of global supply chains to identify delays, shortages and bottlenecks, rescheduling deliveries to certain customers as necessary and maintaining increased inventories. As of March 31, 2025, the percentage of employees called up for reserve duty was approximately 3%. This rate could fluctuate depending on future developments.
The extent of the effects of the war on the Company's performance will depend on future developments that are difficult to predict at this time, including its duration and scope. We continue to monitor the situation closely.
Dividend:
The Board of Directors declared a dividend of $0.60 per share. The dividend's record date is June 24, 2025. The dividend will be paid on July 7, 2025, after deduction of withholding tax, at the rate of 16.8%.
Conference Call:
The Company will be hosting a conference call today, Wednesday, May 20, 2025, at 9:00 a.m. Eastern Time. On the call, management will review and discuss the results and will be available to answer questions.
To participate, please call one of the teleconferencing numbers that follow. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
US Dial-in Number: 1-866-744-5399
Canada Dial-in Number: 1-866-485-2399
Israel Dial-in Number: 03-918-0644
International Dial-in Number: 972-3-918-0644
at 9:00am Eastern Time; 6:00am Pacific Time; 4:00pm Israel Time
The conference call will also be broadcast live on Elbit Systems' website at https://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends.
Alternatively, for two days following the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are: 1-888-782-4291 (US and Canada) or +972-3-925-5900 (Israel and International).
About Elbit Systems
Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.
Driven by its agile, collaborative culture, and leveraging Israel's technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.
Elbit Systems employs approximately 20,000 people in dozens of countries across five continents. The Company reported $1.9 billion in revenues for the three months ended March 31, 2025 and an order backlog of $23.1 billion as of such date.
For additional information, visit: https://elbitsystems.com/, follow us on Twitter or visit our official Facebook, YouTube and LinkedIn channels.
Attachments:
Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flows
Consolidated revenue distribution by geographical regions and by segments
Company
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