ESLT · Elbit Systems Ltd.

Elbit Systems delivered a strong first quarter in 2026, with revenues increasing 15.5% to $2.19 billion from $1.90 billion in the same period last year. The growth was broad-based across segments, led by Land (up 27% on ammunition and munition sales in Israel and Europe), C4I and Cyber (up 17% on radio and command-and-control systems in Europe), and ISTAR and EW (up 17% on airborne and land High Power Laser and Electronic Warfare systems). Aerospace revenues grew 2% due to project mix, while Elbit Systems of America rose 5% on Night-Vision Systems, partially offset by lower medical device sales.

GAAP gross margin improved to 25.2% from 24.0%, and Non-GAAP gross margin rose to 25.5% from 24.3%. Operating income increased significantly: GAAP operating income was $205.1 million (9.4% of revenues) versus $149.7 million (7.9%) a year ago, while Non-GAAP operating income reached $222.0 million (10.1% of revenues), surpassing the 10% mark for the first time. Net income attributable to shareholders rose to $160.8 million (GAAP) and $186.4 million (Non-GAAP), with diluted EPS of $3.34 and $3.87, respectively.

Order backlog hit a record $30.2 billion, with 71% from outside Israel and 49% scheduled for delivery by the end of 2027. Operating cash flow was strong at $281.0 million, driven by higher net income and increased contract liabilities. The company also announced several recent contract wins, including a $1.4 billion European modernization program, a $750 million PULS rocket system contract for Greece, and a $212 million U.S. Army night vision goggle order. Management highlighted scaling production capacity, increasing automation and AI, and investing in R&D to support long-term growth. The Board declared a $1.00 per share dividend.